Silver bullion is another kind of precious metal investment that is gaining popularity fast like gold. However, this investment has some uniqueness that makes it outstanding. Silver is a timeless metal that has been use for many centuries. The metal was at sometime in history used as currency, a function it holds up to date. The availability of metal is about 17 times more than gold but the average quantity mined at the moment is less than average amount of gold held in different treasuries across the globe. Read on for more information.
Silver bullion has high bulk. Due to the relatively low price of the commodity, equivalent silver investment to gold needs bigger storage space and is also heavier. It is estimated that gold bullion is about 31 times more expensive than silver bullion. In addition, the insurance and transportation costs of silver are also higher. Silver is also taxed in many nations either as value added or capital gains tax. The tax rates charged vary from 7 to 22%.
Silver can easily get oxidized losing its radiance to a black sheath. The cost of silver is determined by its initial appearance hence you might lose on the cost of commodity if the silver bullion is tarnished at the time of sale. This implies that you should take great care of the investment to ensure it will be in pristine condition at the point of sale. Ensure the protective cover against oxidation found put on bullions is intact.
Reading reviews and journals regarding silver bullion investment is crucial to help new investors learn the rope in the investment. Just like in other investments, you need to know the limits and risks as well as common mistakes you can avoid. You also need to learn overall problems you will have to cope with. In addition, now there are silver coins or bars that are reputable in the market.
Find trustworthy dealers. It is crucial to know the nature of the partner you are dealing with since unscrupulous dealers charge very high premium making it impossible to make any profit from the investment.
Determine your investment goal and stick to it. If you had planned to invest 5%of your portfolio, do not exceed it since you will be increasing your risk. Stick to what you know as well as the successful investment goals you had set.
Even though silver bullion is less volatile than many precious metals in the market, always invest in the amount that you can afford. The main reason for choosing investments that are within your means is the fact that you will be taking risk. In case you are a newcomer in the industry, get professional help on how to go about the investment.
Knowing the silver bullion market inside out is crucial for strategizing purposes. Knowing the right time to enter and exit pays well in the long run. Get in the market when the cost of silver is at its lowest and exit when it is at the peak to make maximum returns.
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