When people buy and sell silver, they often use the terms sterling silver and silver interchangeably. The precious metal is much in demand, thanks to rising demand from the industry, as well as increased scarcity in recent years. Silver is, of course, a popular metal, as it is 75 times cheaper than buying gold. Basically, it would take around 75 troy ounces of silver to buy one troy ounce of gold, at the current gold-silver price ratio. As silver prices continue to escalate, there is increased interest in the white metal from customers all over the world.
What is sterling silver?
So, is sterling silver and silver the same thing after all? Actually, sterling silver is an alloy of silver. When we use term ‘fine silver’, we are in fact referring to silver with a purity of 99.9%. However, sterling silver has a purity of only 92.5%. The balance 7.5% consists of other metals, which we will discuss shortly. Like gold, silver is an amazing conductor of heat and energy. It is also a soft metal in its pure form. Due to this, 99.9% pure silver is not a good choice for making artefacts, jewellery, cutlery, etc. Sterling silver was therefore created by metallurgists in order to have a metal to work with, that was hard and durable enough to be able to hold the shape of an item.
Sterling silver is a popular choice for making kitchenware
The composition of sterling silver
Steel, which is an alloy itself is sometimes added to silver to make sterling silver. Other metals of choice include copper, nickel or zinc. So, when sterling silver is made, the balance 7.5% is made of these base metals. The addition of base metals may enhance the stability of the metal, but it also causes loss of lustre and the metal becomes tarnished over time. Tarnishing is a common feature of most alloys and if sterling silver is not polished regularly, the shine starts to fade. Basically, on exposure to air or water, sulphur compounds react with the sterling silver and a black sulphide layer is created on the surface, which fades the lustre from the surface. On the other hand, pure silver does not tarnish easily.
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Uses of sterling silver
Sterling silver is cheaper than pure silver and is often used in the making of kitchenware, particularly cutlery. These include spoons, knives, forks, etc. Prior to stainless steel cutlery being introduced, sterling silver was the material of choice for cutlery making and this cutlery needed to be polished every day. Utensils made out of sterling silver also need to be used every day, as lack of use causes reactions with the air and the items start to look tarnished.
Call our silver experts to know more
Our silver experts can help you identify the differences between sterling silver and fine silver. Since it is a popular choice, many items that are actually made of sterling silver are referred to as silver. It is important that our buyers are well aware of what they are buying. Call a member of our team on 020 7060 9992 or get in touch online via the contact page on our website. All the silver products sold by us carry a certificate of authenticity and a buyback offer. You can also get more information on our website about the various silver products that we do.
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Best Gold and Silver Research sites
François-Marie Arouet, the classical French philosopher and writer commonly known as Voltaire (1694-1778) once said: “Paper money eventually returns to its intrinsic value – zero.” One of the earliest uses of fiat currencies is recorded in China in the year 1000 AD. Since then, modern global economics has successfully managed to keep the solvency of fiat currencies alive. Its intrinsic value was kept alive by linking it to gold so that businesses and tradesmen would honour paper notes and coins made of base metals as having an accepted representative value. This was popularly known as the gold standard and the practice ended at the end of the two world wars, as gold reserves eventually thinned out.
Do your research to really unlock the potential of gold and silver
Rising inflation has been eating into the value of fiat currencies over the last 20 years, and global economic turmoil has left few options to generate good returns for investors. Therefore, anyone looking for a sustainable, stable store of value with strong fundamentals in order to hedge against currency debasement and market risks would seriously consider gold and silver. With the prices of precious metals slated to go up in the near future, it is important to conduct your own research into gold and silver. In this article, we’ll run through the best blogs for you to read.
Investor research is an essential step before investing in gold bars
1. The World Gold Council blog
The World Gold Council focuses on developing the gold industry by creating awareness among investors, ensuring a steady demand for gold and establishing themselves as a market authority for gold. Their blog provides insights into the gold market and helps investors understand the drivers for supply and demand in the market. The blog also provides market commentary and tracks price trends for precious metal. Through its members, the World Gold Council seeks to be a collective voice in the gold industry. Several articles on the blog are available for free download and provide investors with effective guidance on how to invest in gold.
Interested in gold and silver? Read our Ultimate Insider’s Guide to tax efficient investment here
2. The LBMA blog
The London Bullion Market Association (LBMA) is a regulatory body that sets standards for the precious metals market. The association has a footprint across 30 countries, with more than 140 members. The LBMA sets trading standards for the industry in a number of areas including purity and form. As a regulatory body, the organisation value adds to the industry by ensuring that service providers adhere to the highest standards at all times. Their blog is essentially a collection of news articles, press releases and publications relating to the precious metals industry.
3. Gold trading experts
Based in Birmingham, Gold Trading Experts is a gold industry training services provider for investors. They provide online tutorials, training materials and information designed to assist their users in understanding the dynamics of the gold market. Regular video overviews of the market are regularly uploaded on their website. In order to gain full access to their services, users need to purchase a paid subscription. The gold blog provides market updates and price trends.
Coin buyers use blogs to do their research before buying coins made out of precious metals
4. The Royal Mint bullion blog
The Royal Mint has a long history that dates back to 886 AD, during the time of Alfred the Great. Since then, the Royal Mint has been the official flag bearer for British coinage. After centuries of existence as a mint owned by the British government, it is now a limited company, wholly owned by Her Majesty’s Treasury. The mint is the official manufacturer tasked with creating the nation’s coinage. The bullion blog published by the Royal Mint is a great repository of information about the London bullion market, price information, coin reviews and articles about important coins in the history of British coinage.
5. Mint news blog
The Mint News Blog provides market watch articles and commentary on the products released by the United States Mint. The information contained in the blog is of great interest to numismatists and bullion investors alike. The blog was originally published by Michael Zielinski back in 2009 and is now managed by a publishing firm called Whitman Publishing LLC.
6. PNG news and events blog
The Professional Numismatists Guild (PNG) is one of the best-known certification agencies in the world for gold and silver coins. Their website features a blog page under the title ‘news and events’, which serves as a library of information for investors who wish to buy gold and silver coins. Set up in 1955, PNG is an industry regulator of repute, whose coin grading service is trusted all over the world.
7. The artisanal gold council blog
The artisanal gold council caters to the mining industry and champions the sustainable development of small-scale gold mining companies. The artisanal gold council blog publishes information, articles and news related to the gold mining industry and can be an interesting read for investors who wish to know about the sources of the gold they’re buying.
8. The silver institute blog
The Silver Institute is a non-profit organisation that acts as an industry body for the global silver industry. The institute’s website is essentially a blog aimed at educating silver investors across the world. It features industry news, the uses of silver, silver price charts and links to other online resources about silver investing.
Call the precious metals team at Physical Gold to know more
As a reputed online broker of precious metals, Physical Gold has a team that provides expert advice to investors. Call us on 020 7060 9992 or get in touch online to connect with a member of our team to know more about making the right investment decisions in precious metals.
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The price of any commodity is dependent on rising and falling demand. When demand becomes higher and the supply of the same commodity dwindles, it impacts the price significantly. Silver is both a precious metal, as well as a commodity. If we are to go by what the experts are saying, 2018 could possibly be the year for silver.
How is the silver price determined..
The spot prices of silver are decided by the COMEX exchange in New York. The spot prices are dependent on a number of factors. Investors like precious metals like gold and silver as they provide stability and balance to a person’s wealth portfolio. They also provide a hedge for investors to park their funds during periods of turmoil in the global capital markets. Of course, macro-economic forces, as well as political pressures have an impact on the prices of silver. But, more importantly, the forces of supply and demand have a significant impact on these prices.
Fall in supplies of silver
The current spot price of silver is approximately $16.45 per troy ounce. There is a market expectation that the price of silver could soon touch $20. Over the years, the supplies of silver have been depleted as several million tonnes have been mined in response to the increased industrial demand. Some of the leading silver mining countries across the world include China, Russia, and Peru.
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Recently, the government of Peru announced that there had been a sharp drop in silver production, in the Cajamarca region. Cajamarca is a region in Peru which is famous for its silver deposits. The 2017 report, released in February stated that silver production was down to 323.1 metric tonnes, from to 367.4mt during the corresponding period the earlier year. This was a significant drop of 12%, largely due to silver resources being exhausted in the country.
Silver bars can be a great investment while prices remain low
In a similar vein, Chile, the world’s fifth largest producer of silver reported a large drop of 32% in silver production by May 2017. When we go back in time, we realise that, not so long ago, in 2014, Chile had produced a record high of 54 million ounces of silver. This supply fell to 4.6mn ounces in 2016 and then further down to 3.1mn ounces in 2017, an appalling reduction in supplies.
That’s not all….
Moreover, as the world continues to wade its way through the longest economic crisis in modern times, nations and markets worldwide continue to buckle under the pressure of debt. This is adversely impacting commodity prices worldwide. Due to the cascading effect of these dark economic forces, production of base metals has also shrunk globally. The bad news is that this is likely to impact the production of silver as well, since a large amount of the precious metal is really produced as a by-product of lead, zinc and copper mining.
Infact, the World Silver Survey reckons that 34% of global silver is produced as a result of zinc and copper production, while another 22% comes our way due to copper mining. When we do the math, we realise that is actually a whopping 56% of global silver production, which is in jeopardy. Knee-jerk reactions by governments across the world haven’t helped at all. For example, India, which is a large consumer of silver saw its demand drop due to the Indian government’s introduction of demonetisation measures in the country to control the illegal black money.
The electronics industry uses silver heavily in wires and electrical contacts
Rising demand
While the supply scenario seems to be mostly doom and gloom, things are much rosier on the demand side. Electric cars, solar panel manufacturers and the electronic components industry all use silver heavily, so industrial demand for silver has risen steadily over the years. Solar panels use photovoltaic cells that generate energy from the rays of the sun. Due to its incredible conductivity properties of both heat and electricity, a silver paste is used in every solar panel. Solar panel installations have gone up by 24% in 2017 alone.
This could be even bigger….
The electric car industry is another industry 
where silver is much in demand. Analysts believe that 25% of the automobile industry worldwide will go electric by 2030. Due to the presence of silver in several electronic components in these cars, industrial demand for silver is expected to rise significantly. Already, the demand from the electronics industry alone stands at 249.9mn ounces. This is already 41.5% of the entire global industrial demand for silver which stands at 599mn ounces in 2017.
Impact on prices
Silver prices are expected to skyrocket on the back of this increased industrial demand. Remember, we have not taken into account the bullion bars, coins and the mintage industry at all, which would add to the impetus. With gold-silver parity in prices at around 75:1, silver is an affordable investment. Many experts, therefore believe that it’s a good idea to invest in physical silver for the long term, and get in now while the prices haven’t gone through the roof. There are market experts who believe that silver prices could even go up as much as $130 per ounce in the future.
Talk to our silver investment team to know more
At Physical Gold, our team of expert investment advisors includes silver experts who can guide you in the right direction, if you decide to invest in silver. Browse our website and you will find that there are plenty of investment options from silver bars to silver coins. Call our team today on 020 7060 9992 or contact us by filling out the contact form on our website, and a member of the team will soon be in touch with you to discuss your requirements.
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Putting together an investment strategy isn’t easy. A shrewd investment strategy requires astute asset allocation that keeps your financial goals in line with your risk tolerance. A smart investment strategy is not about timing the markets and moving from one asset class to another in order to maximise your gain.
Important considerations prior to asset allocation
There are two important aspects to understand:
- The first one is that you cannot win every time. There are boom and bust cycles in every market and you must ride them. In order to do that, a long-term view is essential. A long-term view is typically more than 10 years, during which time, your portfolio will have matured having gone through these cycles.
- The second one is that your asset allocation can only be done in line with your risk appetite. In that sense, this step is unique for every individual. Each person’s risk appetite depends on that person’s income, age, family situation, the number of dependents, ownership of property, debts owed, assets owned, etc. It’s pretty much like a balance sheet of that person’s life. Making money is about taking more risks to gain more. Therefore, an aggressive asset allocation that includes volatile asset classes is great for someone who is younger, earns well and has the propensity to take more risk. However, a middle-aged man who may retire within the next five years is risk-averse and may require a more conservative approach, in terms of his asset allocation.
Investment in silver bars can be a clever way to balance your investment portfolio
A diverse approach
The old maxim, ‘Don’t put all your eggs in one basket’ holds true in this case. A diversified approach taken by the investment advisor will typically include a number of asset classes that may include real estate, stocks, bonds, equity growth schemes, fixed income products, cash deposits, ISAs and of course precious metals. The premise here is that investments across a range of asset classes will lead to stability in the event a particular asset class underperforms. Performance is monitored closely and money moved from one asset class to another depending on market conditions. Diversification protects the investor against unexpected market shocks. Rebalancing, on the other hand, is all about risk assessment and ensuring that overexposure to areas of risks is avoided.
What is balancing a portfolio?
Let us suppose you started your portfolio with a traditional asset allocation of 60-40 across equities and bonds. At the end of three years, you find stocks have outperformed. Now, your portfolio has grown, but you may have too much in equities due to a boom in capital markets. Then, you need to book profits and re-allocate, so that once again the 60-40 ratio can be maintained.
Rebalancing is not about reacting to short-term market conditions. When events like Brexit hit the market, don’t panic and start selling off a particular asset class in order to re-adjust. Patience is required to stick to the plan and reap rewards in time. Rebalancing should be done every year or two.
Another factor that needs to be considered when rebalancing is changes in a person’s personal circumstances that impacts the risk appetite. A person may get older and this would affect the risk appetite. A person could also lose his/her job. All these changes in personal circumstances need to be taken into consideration.
Diversification of your portfolio across asset classes is the key to mitigating risk
The role of silver in balancing
The role of precious metals like silver in an investment portfolio
serves more than one purpose. The first one is hedging. Hedging is a strategy that offsets risks associated with investments, more importantly, future risks. So, if the portfolio is overweight by 10% in equities and we move that 10% to silver, we have not only balanced the portfolio but also hedged against future risk of losses that we may have incurred by remaining invested in stocks and bonds. We need to bear in mind that our portfolio is also impacted by the forces of inflation, which means that the real value of the money we make today will be a lot lower in 20 years. By investing in silver we also hedge effectively against inflation. Many investment experts agree that 7-15% is a healthy allocation for precious metals in any portfolio. At the silver price per troy ounce at $16.58, it’s an affordable addition to your portfolio.
To know more about silver investing, call us
If you have any questions about how much silver to include in your portfolio, talk to our experts. Our team of investment experts are just the right people to guide you on investing in silver and other precious metals. Call us on 020 7060 9992 or send us an email and an investment advisor will get back to you.
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It’s said that if you cross a gypsy fortune teller’s palm with silver, she will happily tell you your future. Well, these days with all the financial analysts around, we don’t need fortune telling to predict the global market for silver. As you may know, silver is not just a commodity, but a precious metal that has been desirable to mankind over centuries. Of course, gold has always been the preferred choice for many investors, but given the gold-silver price parity, which is approximately 75:1 currently, silver is clearly a more affordable investment. Let’s look at where the market is in 2018 and where it’s headed.
Demand and supply of silver in 2018
The silver price curve has always tracked the gold curve, which means that silver has historically mirrored the price movements of the gold market. However, the mirroring effect ended in March 2011, when gold broke free and rose quickly as investors parked their money in gold in order to escape exposure to the troubled international capital markets.
From $800 an ounce in 2009, gold broke all records by racing to $1900 an ounce in 2011.
Silver also enjoyed some of the action, rising to a price of $49.80 in April 2011. However, silver fell back against gold in the years after that, and the current spot price is approximately $16.58 per troy ounce. However, we are now witnessing an interesting phenomenon.
Silver bars could be a great investment in 2018
The supply of silver has fallen significantly. The leading silver producing countries of the world, which includes Russia, Mexico, China and Peru have all registered drops in mining volumes. There’s no particular reason, just depletion of the resource. Peru, in particular, reported a 12% drop in production volumes in 2017. Yet another leading producer, Chile – the fifth largest producer in the world, also reported a significant drop in production volumes. From a high of 54mn ounces in 2014, Chile’s production dropped to an appalling 3.1mn ounces in 2017.
Of course, scarcity of resource is just one of the factors that are affecting the silver market in 2018. The other is rising demand. The electronics industry is silver hungry and as of 2017, consumed 249.9mn ounces in 2017. This, in itself, is a significant 41.5% of the entire global industrial demand for silver, which was reportedly 599mn ounces in 2017. Other industries are silver hunger too. The demand for silver in the solar panels industry rose by 34% to 76.6mn ounces in 2016.
Impact on prices
Needless to say, the pull of relentless demand for silver by the industry, coupled with a scarcity of supply is expected to start pushing up silver prices. Silver is expected to reach $20 an ounce soon. However, if the current situation continues in the silver industry, prices could go up much further. Some investment analysts believe that silver could reach $100 an ounce. Still, others believe that silver could soon be commanding a price of $130 an ounce. Whatever the outcome, silver offers stability to your investment portfolio and if it is to be believed that silver could reach new highs, it’s probably best to start investing in the precious metal now.
Call our investment experts for silver market advice
At Physical Gold, our investment experts track the silver industry on a day to day basis. So, we don’t need a fortune teller to tell us which way the market is headed. We love speaking to investors just like you, so if you’re thinking of investing in silver, give us a call. You can call us on 020 7060 9992 or message us via the contact form on our website. A member of our team will soon be in touch with you.
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It all started with a discovery
The actual event of the discovery of silver has been lost in time. However, modern-day archaeologists surmise that silver was already in use among humans around 3000 BC.
Ancient civilisations like the Incas, Greeks and the Egyptians held silver in high esteem and used it for the creation of a number of artefacts from religious idols, jewels, and coins. Infact, the three metals, all of which are elements, known to ancient humans were silver, copper, and gold. The ancient Egyptians were able to separate silver and gold by heating the metals with salt. Later humans started separating silver directly from its ore. This technique was prevalent in Europe as well as in ancient India, China, and Japan.
The early history of silver in global commerce
It is now believed that it was from these ancient times that silver was used as a form of money. An interesting fact is that silver was dearer than gold in Egypt well up to the 15th century BC. We can only speculate that perhaps that’s where silver investing started. The Greeks were mining around 30 tonnes annually by the 7th century BC. The economic stability of the Roman Empire was heavily dependent on silver bullion, which came from conquered territories like Spain.
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Believe it or not, the Romans hit a peak production of 200 tonnes annually, and 10,000 tonnes of silver was already in use within the Roman occupied territories by the second century AD. Needless to say, this was an unprecedented event, and it’s hard to understand how the Romans hit those volumes with the technology that they may have had in that era. Clearly, those are volumes that we would hit using the modern machinery of our times. By the time the Roman Empire was finished, tens of thousands of tonnes of silver had already been mined and used up. As only a finite amount of silver exists on the planet, supplies had already started being depleted.
Silver is easy to melt into bars from coins
The growing popularity of silver
By the 18th century AD, much of the silver extraction action had shifted to another continent – South America. The Spanish stepped up mining operations and some of the countries like Argentina were named after Argentum, another name for silver. Silver’s foray into coinage started around 600BC in Lydia, a kingdom from Asia Minor. Coins minted in silver include the Drachma, from Greece, The Roman Denarius, The Dirham and the Indian ‘Mohur’ from the Mughal Empire.
Presumably, the culture of silver investing took off around this time. Governments had always observed that the price of silver tracks gold, so a gold-silver parity was set. This ratio was set at 12.5: 1 in the Roman Empire. The US set this ratio to 15:1 in 1792. France actually set this ratio to 15.5:1 in 1803. Meanwhile, silver was being used widely across the world for coinage and in the 1400 -1500s several countries across the world were using the precious metal for coinage. People, therefore, started investing in silver coins for its value. Spanish silver coins were being transported to Asia by sea. These coins were traded for porcelain, silks, spices and other desirable goods from Asia. So, now we can see where the perception of value relating to silver started building up.
The demand for silver also rose during the Renaissance, as it was used for fine craftsmanship. It was around this time that the European nations used a lot of silver to mint coins. As a result of this new demand for coinage, there was a huge influx of silver into Europe, which ultimately led to inflation.
The Roman Denarius was an early silver coin
Why was silver a popular metal for coinage?
Let’s look at the reasons why silver was a great choice for coinage.
- Firstly, silver and gold are dense metals. Having a high value to weight ratio is an advantage, as high value coins don’t need to be huge and bulky.
- It is easy to divide silver into smaller parts, without eroding its value. You can make coins straight out of a bar or melt coins back into bars.
- The density and high value-weight ratio make silver products convenient to transport.
- The purity of silver can be easily established. Very pure silver is denoted as having a purity of 999.9.
- Since it has a universally accepted price, the metal is fungible. ‘Fungibility’ means that one piece of silver can be traded unequivocally for another. A 1oz coin is exactly the same value as another.
- It does not decay and is considered to be highly durable. This makes it a great choice of metal for coinage. Since it has lesser value than gold, it is great for small transactions.
Historically, silver coins were always popular among investors
Silver investor rallies
However, it wasn’t until 1979 that really serious silver investors emerged. The Hunt Brothers, Nelson, William and Lamar, sons of the millionaire Texan oil tycoon, H.L. Hunt tried to corner the silver market by amassing 100 million troy ounces of the precious metal and drove the spot price of silver up from $11 in September 1979 to $50 in January 1980. Eventually, intervention by the US government stopped the bull-run.
The next rally for silver investors came in 2011, on
the back of the US debt ceiling crisis. Standard & Poor, the global rating agency based in the US released a negative outlook on the “AAA” rating of the United States economy on April 18, 2011. By the 25th, silver traded at $49.80 on the COMEX, as investors scrambled to pull their money out of the US economy, and turned to precious metals in order to hedge.
Call us to discuss your silver investment goals
Physical Gold is a reputed online silver broker and precious metals investment advisory firm. Our investment advisory team has precious metals experts who rely on their years of experience and expertise, when it comes to giving sound advice to investors, just like yourselves. Call us now on 020 7060 9992 or get in touch with us online to discuss your silver investment goals.
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Investing in silver is new to many. Even established gold investors may not have bought silver before. But that’s now changing, as we’re seeing just as many enquiries in silver as gold. So why are more and more people investing in silver?
Gold isn’t the only precious metal – Why you should invest in silver too
Why invest in silver, when gold is the ‘go to’ precious metal?
If you currently invest in a precious metal then it’s likely to be gold and with good reason. As the most popular of the precious metals, gold is recognised as a valuable commodity and is available in a range of formats and weights, which are easily tradable. Gold has historically been a reliable way to both protect and grow your wealth.
Silver’s the new kid on the block
But gold is not the only precious metal investment. Experienced investors know that, as with all types of investment, having all your eggs in one basket isn’t a good idea. It’s unlikely that all the shares in your portfolio are in one company, so why not consider diversifying your holdings in precious metals too? In fact, it’s not only us who are excited about the potential of silver. 5 years ago, 95% of our enquiries were for gold. Roll on to today, and our sales are now split 50/50 between the two precious metals. Metal diversification is a sound strategy for many reasons:
Silver’s historical position
Silver, like gold, has been considered a precious metal for hundreds of years and has been utilised as money throughout history. Its value is intrinsic, meaning that like gold, there’s never a shortage of buyers. As such, silver is a great vehicle for securing your wealth against threats such as volatility and for growing your portfolio.
Much of silver’s use can be roughly split three ways; between ‘silverware and jewellery’, ‘photographic’ and other ‘industrial’ uses. These are the key drivers of the worth of silver and why it has become such an attractive investment.
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The use of silver, particularly in the photographic and technology fields, has been key to its rising value over time. In photographic materials, the silver can only be used once, meaning the volume of the available silver present on the planet is reducing every day. The technological uses for silver are naturally increasing, as more and more advances in technology are made every day – relying on silver for component parts.
Silver’s pivotal role in solar panels
In the manufacture of solar panels, silver plays a pivotal role. 90% of the structure of crystalline photovoltaic cells, which are widely used in the solar panels industry is made of a silver paste. When sunlight is received by the cells, a stream of electrons are generated. Silver is a metal with one of the highest conductivity ratios of both electrical and thermal energy. Therefore, silver is used to conduct the power out of the panels.
The solar industry alone uses 52.4mn ounces of silver, with each solar panel using around two-thirds of an ounce of silver, which is approximately 20gms. As the industry grows, with more and more townships across the world becoming more energy efficient and turning to green energy, the demand for silver will increase, as will its price. However, a reverse effect would also take place, as the rising price of silver is dissuading solar panel manufacturers from using too much of it in their operations.
Electronics is where silver really comes into its own
Then, of course, another silver hungry industry is the electronics industry, where silver is used in contact switches industry-wide. The electronics industry uses silver that has a fineness of 999.9, meaning silver with absolute purity. With the convergence of electronics with the automobile industry, most cars are now computer controlled and use several contact switches, gadgets like GPS, etc. Due to this, the demand for silver has increased hugely across the industry, particularly with the advent of smart cars. Silver is also widely used in brazing and soldering of metal joints, where operations are conducted at temperatures above 600 degrees centigrade. These joints are often used in applications like heating systems, air conditioning, and plumbing. As silver has strong anti-bacterial properties, it is ideal for use in these applications, especially where pipes may be used to deliver potable drinking water to homes.
The solar panels industry is a major user of silver
The use of silver, and its value, has changed over time but one thing is certain – the demand is growing and the stock of available silver on the planet is steadily decreasing. An increase in demand and a slowly diminishing supply, usually means one thing for prices..!
Many Uses
Silver, unlike gold, isn’t merely desired but essential for industry and commerce and its necessity has put considerable strain on silver’s supply thereby increasing demand for silver investments. Historically gold and silver used to trade at a ratio of 12:1 which meant it took 12 ounces of silver to buy 1 ounce of gold. Today – the ratio has widened and it takes 60 ounces of silver to buy 1 ounce of gold. Most commentators and analysts believe that as a result, silver bullion is massively undervalued with many predicting it could reach $100 an ounce in the next five years.
Supply shortages
As silver’s use in industry increases many financial analysts, investing experts, and even geologists believe that a silver shortage is upon us. Infact the Silver Institute predicts that silver demand for industrial purposes will increase by 36% by 2016.
The demand for industrial silver went up a lot more, rising to 599mn ounces in 2017. A large portion of this increased demand came from the solar industry, as there was a 24% increase in global solar panel installations in 2017. Solar photovoltaic cells use a silver paste, thanks to the incredible electrical and thermal conductive properties of silver. Silver is also an essential ingredient for the manufacture of electronics, including electronics used in the automotive industry. The industrial demand for silver from the electronics industry alone consumed around 249.9mn ounces.
Here’s the best bit….
Silver-zinc batteries are increasingly being used by the electric car industry, which is also growing in leaps and bounds. Experts believe that by 2030, 25% of the global automobile industry will be electric. So, on the one side, we have increased industrial demand that seems to be increasing steadily over the years, clearly outpacing the production volumes. The leading countries across the world for silver production are Mexico, China, Peru, and Russia. Sadly, production volumes have been plummeting globally. Recently, the Peruvian government released a statement that declared a significant fall in silver production from mines in the country. In fact, the fall in production volumes is as much as 12%. So, you can see where this is headed. A scarcity of a much in demand resource, with the demand curve rising steadily over the years would eventually lead to the spot prices of silver skyrocketing. Current spot prices are at $16.58 levels for a troy ounce. However, many investors believe that prices are likely to reach $20 an ounce in 2018. Still, others believe that in time, silver could be as dear as $130 an ounce. Obviously, as we move into the future, investors who believe in the rise of silver, need to get in early in order to stay invested long term and maximise their gains from the difference in buying and selling price.
Silver is undervalued
The historical ratio between gold and silver is currently out of sync. Throughout history, silver has, on average, been around 10-15 times cheaper than gold. Right now this gap has widened so that 1 ounce of gold, for example, will buy an astounding 75 ounces of silver. Many experts have identified this significant undervaluing as a huge opportunity to purchase silver.
Silver bullion is a very popular and stable investment
Why invest in silver coins or bars?
In addition, silver has many other strengths, making it a very worthwhile choice to strengthen your portfolio. People that ask themselves, “Why consider investing in gold?” end up considering silver investment. Consider the following benefits of investing in silver:
- Low entry point– because of silver’s relatively low price (when compared to gold), it’s an attractive precious metal when either first investing in metals or when adding to an existing portfolio. As silver is much cheaper than gold it only takes a small price change to effect a large percentage increase in growth. It’s fair to say that consequentially – silver is more speculative than gold but together they provide a good balance within your precious metals portfolio.
- Good ‘hedge’ against other investments– Silver is typically not linked to falls in the stock market or interest rates, so when stock markets fall or interest rates are low for example, your silver investment still has the potential to rise.
- Likely to yield higher returns than cash deposits– with interest rates low, your returns may well be better than cash investments such as ISAs or bank savings. Like a bank though, your investment can be securely held by us, so there’s no need to hide your silver bars under your mattress!
Contacting Physical Gold to discuss silver investments
If you’re interested in investing in silver or would like to add to an existing gold investment, then simply contact Physical Gold here. As a leading precious metals dealer, we’re able to offer competitive prices on gold and silver and organise secure holding or ship your silver directly to you. Whether you’re interested in purchasing silver bars, simply for investment, or you prefer silver bullion, our experts can guide you on how to buy silver and where to get the best silver deals in the UK. You can also buy silver online from a reputed online silver broker. When you buy silver products from Physical Gold, be it silver bars or bullion, you can rest assured that every product comes with a certificate of authenticity, as well as a buyback guarantee.
If you are investing in bullion coins or numismatic coins, we also have some great coin accessories that would help store your collection safely, without damage, in the event you decide to take delivery of your investment at your preferred location. In terms of delivery and storage, we have some excellent options, where you can choose not to take delivery of your purchases and opt to have them stored at our LBMA approved secure storage vaults, and simply receive the paperwork that entitles you to access them at any time you want.
The first step in buying your silver from Physical Gold is to simply open a free account online, select your purchases and put them in the online shopping cart. From there onwards, you need to select your delivery options, complete any further steps, pay for them and sit back and relax. Call our investment team now on 020 7060 9992 and speak to a consultant.
Our consultants can also talk through your requirements, to ensure you make the best investment for your personal situation.
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The price of silver has skyrocketed over the years and silver coins are now worth a lot of money. When we look at British coinage history, we realise that coins minted after 1947 contain no silver and therefore aren’t that valuable. These pre-1947 coins are now worth more than 40 times in value, depending on their silver content and their rarity. In general, any coin that was coined before 1947 is worth a lot more than its face value. For example, coin dealers do offer a pound for a sixpence coin minted before 1947. However, in this article, we will look at the silver coins made before 1947 that’s actually worth looking for and collecting.
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Valuable old British coins
Pre-1920 silver coins are made using 92.5 % real silver and the ones made from 1920 to 1947 had 50% silver. These coins can, therefore, be sold as bullion. A good starting point in identifying dealers is to check out the British Numismatic Trade Association (BNTA).
Here’s a list of 6 great British silver coins from yesteryear that are valuable and boasts of fine grade silver.
- A George III Crown is a great coin to have in your collection. These coins could date back to 1818 and normally weigh 28.27gms of 0.925 fine grade silver.
- George IV Crowns date back to 1821 and were also minted with 0.925 fine silver. These coins weigh 28.27gms and can get you £26 to £35 depending on their condition
- The 1892 ‘Jubilee Head’ Florin features Queen Victoria on the obverse and weighs 11.4gms of 0.925 fine grade silver. Only 283,000 were minted and these usually fetch nearly £120 in the market.
The Victorian Silver Florin dates back to 1875 and is a highly collectable coin
- The 1902 Edward VII British silver shilling is yet another collectable coin of value. These were issued only till 1910 and weighs 5.25gms of silver with purity of 0.925. Almost 7.9mn were coined at the time and many are still available. So, it’s worth looking out for one as each of these in a good condition could fetch around £100 in the market.
- 1743 George II Shilling Roses is a highly collectable British silver coin. The shilling commanded a value of 12p at the time and was struck using silver mined in Britain itself from the West of England and Wales. The obverse features the profile of King George II and the reverse is adorned by the roses and plumes, symbolising the origin of the silver. A fine specimen of one of these coins could fetch around £
- The 1847 Silver Proof Gothic Crown is considered by many numismatists around the world to be the finest silver coin ever minted. The inscriptions on the coin are in gothic script, hence the name. Queen Victoria is pictured with a crown on this coin. As these were minted as a proof, they were not circulated. Nevertheless, these coins are part of many coin auctions across the world and a good quality one could be worth around £
Numismatics experts at Physical Gold can help you select the right silver bullion
At Physical Gold, we have a team of expert numismatists who can help you make the right investments in British silver coins. Although many of these coins aren’t necessarily priced in thousands, they are sure to get steadily dearer with the passage of time (e.g. like modern-day Sovereigns and Britannias). With silver prices steadily climbing, and the rarity and collectable value of these coins increasing, now is a good time to invest in British silver coins and hold them for the long run. Call our team on 020 7060 9992 or email us to find out more.
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For many, their wedding day is a very special day indeed, one that could be considered the happiest day in the life of a young couple. The exchange of marriage vows, adorned in special wedding attire makes the event a celebration, the memories of which would hopefully be cherished by friends and family in the years to come. Irrespective of religion, class or nationality, weddings all over the world are carried out with pomp and gaiety and in a similar spirit. The only things that are different are the customs, in keeping with diversity across the world.
The wedding gift
Of course, gifting is a major part of the wedding festivities and often gifts of value are showered upon the joyous couple. The most valuable gifts usually come from close friends and family. Brothers, sisters, parents, grandparents and close friends will all pull out their wallets and spend lavishly on getting the happy couple a memorable gift. There are certain emotions that people generally follow when making the decision to purchase a gift. People generally try to align the gift with the personal tastes of the receiver of the gift. For many, they intend the gift to be something more than just a gift. They intend the gift to have emotional impact, so the couple would remember the person who gave them the gift.
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A gold bar makes a unique wedding gift
However, far too many people end up buying kitchen accessories and home décor when it comes to buying a wedding gift. Simply typing in ‘popular wedding gifts’ into Google, brings up a laundry list of items such as cupcake carriers, mixing bowls, glass bowl sets and baking utensils. Items of greater value perhaps, include luxury watches and even holidays for two to Dubai. But, none of these gifts will stand the test of time. Holidays will be enjoyed and a few memories preserved in the minds of the holidaymakers and pictures. Other luxury items like watches, google glasses, too will eventually reach the end of their product lives and be eventually forgotten. In order to select a wedding gift that is timeless, has lifetime value that grows and has a huge impact, one needs to turn to silver or gold.
As a precious metal, silver coins are yet another attractive gifting option for a wedding
Gold as a wedding gift
The timeless value of gold can never be disputed and the precious metal makes a great wedding gift. For a high-value gift that is both impactful and unique, one can consider buying a gold bar. Gold bars are available in different sizes, from 1oz bars to 500gms and even 1 kilo.
A popular gold bar of choice is the 100g gold bar which offers great value for money. However, if buying a gold bar is not your thing, it’s worth considering gold coins instead. Gold is, of course, a wedding gift that is an asset for the young couple and for many, could be a first investment in building a wealth portfolio. They will always thank you for helping them take a step in that direction. Physical gold has many options for buying gold coins. Popular choices include the Gold Sovereign, the Gold Britannia, the 1oz Gold Lunar Dog and the Gold Krugerrand. For a great wedding gift, consider buying a case of gold coins. Cases that can hold up to 10 coins are available.
Silver as a wedding gift
In terms of budget, silver is a great deal cheaper than buying gold. In fact, the price of silver is approximately 75 times cheaper than gold. However, just because silver is cheaper than gold, doesn’t mean that it makes any less of a gift than gold. The fact that silver is cheaper, means that you can invest in more of it as a gift. Like any precious metal, it shares the properties of timelessness, uniqueness and ascending value. Physical gold has some excellent choices in silver bars, as well as collectable silver coins. An amazing purchase is the 1 kilo silver bar. Other great options in silver include the 1oz Silver Maple Leaf Coin, 2oz Silver Queens Beast Bull and the Silver Lunar Rooster.
Call our precious metals experts before you buy a wedding gift
Talk to our team of experts at Physical Gold, before you dash off and buy a wedding gift. Our precious metals experts can help guide you on the best purchase to make, so the wedding gift you buy has great style, depth and appreciates in value in the years to come. Call us on 020 7060 9992 or contact us via our website. The couple you’re buying the gift for will be happy you did.
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Many uses of silver
We here at Physical Gold have recently been focusing our efforts on informing the masses about our great silver investment opportunities. In doing so we have created a new infographic called The Wonderful Uses Of Silver which details all sorts of intriguing facts and stats. For instance, did you know that early x-ray films all had a hint of silver in them? And that silver helps to protect spacecraft against the likes of space radiation? This useful material is more important than most people know, and there is much to be learned about its uses. Why not have a read to see what you can discover…
Silver basics one should know
With an atomic number of 47, the precious metal is instantly recognisable by its atomic symbol – Ag, which was historically adapted from the word ‘Argentums’, which is its Latin name. Silver has amazing conductive properties and has a moderate melting point. Infact, believe it or not, silver has a melting point of 961.8, placing the element right between Germanium and Berkelium. The metal has an atomic weight of 107.86. The discovery of silver was an important step for mankind and it was one of the early metals to be discovered, probably around 5000 B.C. Interestingly, the metal can be found in nature in its elemental form, as nuggets or sometimes as crystals. Electrum, a natural alloy found in the world, is actually an alloy of gold and silver.
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Interestingly, the quantity of silver on Earth, when compared to gold is 17 times more and the precious metal is also a rare bird in the English language, as it appears that there are no words in the dictionary that rhyme with the word, silver.
Silver is an essential component for making printed circuit boards
Medicinal use
Silver is a very powerful anti-microbial agent and is widely used to disinfect surgical equipment all over the world. Unknown to many, silver halides were used as an integral part of the manufacture of x-ray film. Amongst other medicinal uses, silver sulfadiazine is used to treat wounds and external infections. Even breathing tubes are lined with silver to kill germs and prevent pneumonia.
Solar panels and silver
Solar panels are constructed using crystalline silicon photovoltaic cells. Silver paste contacts are used by manufacturers, which are printed on these cells. Over 100 million ounces of silver are used each year by the solar energy industry. The semi-conducting layers of these cells use the energy from the sun to produce power. The industry uses another way to produce power, by using the reflective property of silver to reflect the solar energy. Collectors capture this energy and use salts for power generation.
Use of silver in electrical components
Silver is a metal with a very high rate of conductivity,
and this property is used by the industry to manufacture every kind of electrical component. From electrical switches to modern gadgets in the kitchen, almost all electronic devices are made using silver in one way or another.
Even mirrors are made of silver
The reflective properties of silver make it perfect for use in manufacturing mirrors. Many years ago, mercury was used to create a reflective backing on glass. However, due to the toxic properties of this element, it has long been replaced with silver by the industry.
The use of silver in photography
Traditional photography used silver halide crystals to create images. When these crystals were exposed to light, their patterns would register a change, which could then be used to develop a photograph. Of course, with the advent of digital cameras, this practice is now prevalent only in special situations where traditional photography is still in use.
Uses in the automotive industry
The super conductive properties of silver were put to use by automotive manufacturers in keeping our cars heated to a comfortable temperature. Silver is introduced inside the glass used for the windows in cars, which in turn ensures that heat remains inside the vehicle, keeping us warm during winters. Due to its high melting point, silver is also used to lubricate bearings inside the car engine.
Other interesting uses
The reflective property of silver is also used to shield spacecraft against harmful solar radiation. Silver is also combined with aluminium to form a very strong alloy that is used extensively by the air force.
Call our investment team to discuss buying silver
Silver is, therefore, an essential element, as well as a precious metal that has contributed immensely to human society. Equally, it is an attractive investment vehicle and a great asset class to invest in when building your investment portfolio. Call us on 020 7060 9992 or contact us online to know more about the best ways to add silver to your portfolio.
Image credit: Diego Torres Silvestre