Jan 2014


Jan 2014

Is it time to buy silver coins?

By StoneX Bullion

With the last days of 2013 just passing, many gold and silver investors out there are eagerly awaiting the price predictions of precious metals in 2014. According to the experts, we should expect to see a broad range of precious metal prices, from slightly below, to well above current levels, particularly when it comes to the price of silver. So is it time to invest in silver coins? Let’s take a look and see.

Will silver coins outperform gold in 2014? Many industry experts seem to think so.

An increase in the price of silver

It can be really difficult to determine whether or not now is the right time to invest in silver, especially when we are hit with numerous conflicting reports claiming that the price of silver is either on the rise or falling dramatically. The majority of industry experts are forecasting an increase price in silver bullion going forward.

Many experts believe the precious metal will hit new highs, with some even predicting a thirty five per cent rise on current levels. This is thought to be due to the fact that the global economy is improving.

The demand for silver is more prominent than ever before, particularly in the industrial sector where the metal is often used to make cars, computers, power systems and synthetic fibres. Many of today’s products, which contain silver, did not exist until a few years ago and are therefore partially responsible for the increase in demand for the metal. With silver expected to outperform gold in 2014, is it the precious metal that investors should be focusing on?

Supply and demand in 2014

When looking at the future investment prices for precious metals like gold and silver, supply and demand plays a crucial role. According to Barclays Bank in the UK, the silver mine supply is healthy and has grown by an average of 3% year on year since 2004. Mine production is also expected to grow by one to two per cent in 2014. Although an increase in supply usually means lower prices, with demand expecting to increase at a faster pace, supply will be quickly used up, resulting in a shortage and therefore higher prices.

So should we be buying silver?

Whilst these predictions raving about the prices of silver may spark many to alter their investment plans and start buying silver, it is best to stay cautious.  When it comes to creating an investment plan, be sensible. A sound investment plan requires diversification and long-term goals. Only part of your investment should be allocated to precious metals, the rest should be split between property, stocks and other investment opportunities. In order to make the most of your precious metal investments, you will need to carefully shift between gold and silver as the prices change. Thinking of investing in silver bullion coins in 2014? See our tips below.

Silver buying tips

When it comes to investing in precious metals like gold and silver, knowledge is power. No matter what other people are telling you, it is still essential that you carry out your own research on the precious metal prices. Investing in silver is not like investing in stocks and bonds, so you will need to make sure that you have educated yourself sufficiently.

If you have decided that silver is the right investment for you, you then need to familiarise yourself with the many different ways you can invest in silver. For example you could invest in a silver mining company, invest in silver ETF or buy bullion and coins. Many people believe that investing in silver bullion and silver coins are the best way to start investing in the precious metal. Always carry out research to make sure that you are purchasing legitimate silver coins from a reputable seller, particularly if you have chosen to make your investments online.