Sensible financial advisers recommend risk-free financial assets that include having a slice of up to three precious metals in your bullion portfolio. These are gold, silver and perhaps platinum. Gold bullion is a financial indulgence that few can afford. Silver is presently trading at just over $27 an ounce compared with gold’s price of just over $1870. Silver bullion is much more affordable. Silver sometimes gets a raw deal; it is always the bridesmaid and never the bride.
Silver has a financial reputation, and today it is added to a wide variety of appliances. Half of all silver mined today is used for electrical appliances and other modern-day essentials such as cell phones. Only 8% of the gold supply goes into industry. Since 2000, precious metals have been bullish, and silver has frequently outperformed gold. It gets out of the starting blocks quicker than gold, and its run often lasts longer than gold. However, it can be more volatile than gold. Silver is cheaper than gold, used in more applications than gold, and has a small above-ground supply when compared with gold. Most of the world’s gold supply can be accounted for, whereas about half the silver mined is not accountable. Many financial experts suggest that silver should be traded on a shorter-term rather than holding on to the asset for long periods.
When should you sell your silver bullion?
The decision to sell silver bullion is a difficult one. It does not depend only on the difference between bought price and the selling price. When you decide to sell silver bullion, bear in mind these factors.
- Consider the strength of your country’s currency.
- Study whether the global supply of silver is increasing or decreasing.
- Study the reserves of silver that are still accountable above the ground.
- Visit reputable financial websites and learn about silver.
- The market relationship between gold and silver gives an idea of when to buy and sell silver bullion. This gold-silver ratio compares the number of silver ounces to one ounce of gold. Over the last twenty years, this ratio has ranged between 40 and 80.
- The gold-silver ratio increases during recessions and decreases when the market is stable.
- At present, the gold-silver ratio is low due to the global pandemic, implying that silver is strong at present.
Who buys and sells silver bullion?
There are several options available to sell silver bullion, and there are several things to know.
- Negotiate with a dealer to repurchase your silver from you at a later stage.
- Make sure that you get proof of purchase when you buy silver.
- There is a difference between the buying price for silver bullion and the selling price.
- The dealer’s commission and profit are dependent on the exchange rate and the spot price. Sometimes this varies 6%.
- You may make less profit with a dealer than with a private sale, but using a dealer you know, is safer than using a stranger and can be paid cash on the spot.