Live Spot Pricing 24 Hours A Day
Bullion | 08.12.2016

Buy Silver And Diversify Your Assets

We live in interesting times. The stock market is at all-time highs while bonds are on the verge of offering negative rates. There is social unrest as we enter the final stages of this presidential election. We're more divided than ever socially and economically, and terrorism is a world-wide phenomenon including events unfolding right here on the streets of American cities.

Today, as an investor, it's more important than ever to protect your assets while you continue to grow them. Asset diversification is a smart strategy to achieve exactly these goals. A well-diversified portfolio should include stocks, bonds, real estate, and other tangible assets like precious metals.

Among the precious metals, silver offers affordability, liquidity, portability, and has strong industrial demand creating a built-in market. Among the precious metals during the last bull run, the percentage gains for silver far outpaced the percentage gains among gold, platinum, and palladium. Today, silver prices have fallen below the cost of production making it an extremely smart buy. Any asset that falls below the price of production is a buying opportunity!

The Case For Investing in Silver

Silver offers many benefits to the investor. Long considered a “gateway” investment into the precious metals market due in no small part to its affordability. Using traditional investing guidelines, the time to buy any investment is when it has stopped going down. Gold and silver have retracted around 50% from their highs and this is a classic indicator that it may be time to buy. This is only one of the many reasons that now may a great time to buy silver.

Above-ground inventories of silver have been in steady decline over the past decade or so. Currently, the per-ounce price of silver is below the cost to extract new stock from the underground. Companies have cut production because it is not financially feasible at this time. Additionally, most of the world's mineable silver exists in countries that suffer from unpredictable political turmoil and social unrest like Mexico and Peru. Currently, industrial use is growing. Silver is used across many industries including the automotive, technology, solar energy, and medical industries. Computers, tablets, and cell phones all use small amounts of silver in their manufacture. Silver is the most conductive of the metals and its antibacterial properties make it highly useful in medical applications. As technology and new medical uses continue to evolve and grow, silver demand will continue to rise.

Silver is also a tangible asset and acts as a store of value. Unlike stocks and other paper assets, which can become worthless, silver has never and will never be worth “zero”. In times of political and social unrest, currency devaluations, and economic turmoil, silver can act as an “insurance” policy for your investments. The same factors that can cause stocks to crash, tend to increase the price of precious metals. In today's uncertain times of social unrest, terrorism, and extreme economic fluctuations (think Brexit) silver can give investors peace of mind and the opportunity for big gains.

How To Invest In Silver

Silver is available as a “paper investment” in the form of silver mining stocks and EFTs. In the event of economic turmoil, these may not be accessible. The best way to invest in silver is to buy the physical metal and take possession of your asset at the time of sale. Silver bullion is available in the form of coins issued by governments, “rounds” which are coins minted by third-party companies, bars, and as pre-1964 US coins also know as “junk” silver. Let's look at each of these.

  • Coins – Many governments mint silver bullion coins like the US Silver Eagle or the Canadian Maple Leaf. These weigh one troy ounce and are minted in .999 fine silver. Coins are priced based on the daily spot price of silver and carry a buyer's premium over that price. Coins are backed by the full faith in the minting government.
  • Rounds – Rounds are almost identical to coins. They are also one troy ounce in weight and .999 fine. The main difference is that “rounds” are not legal tender and are produced by third parties. Buy Silver rounds at U.S. Coins and Jewelry.
  • Bullion Bars – Bullion bars are also produced by third parties. Bars are available in a wide range of weights with the 1, 5, 10, and 100 ounce sizes being the most popular. Bars are available in weights up to 1000 ounces and generally carry a slightly lower premium per ounce than coins or rounds. Buy Silver bullion bars at U.S. Coins and Jewelry.
  • Bags of Junk Silver – Prior to 1964, the US mint produced silver dimes, quarters and half dollars. Junk silver comes in $500 and $1000 “face value” bags and consists of pre-1964 silver coins. Bags are priced based on the daily spot price and on weight and silver content along with a buyer's premium.

Because of silver's affordable price of entry, a good strategy is to purchase a fixed amount weekly or monthly to add to your asset portfolio. Physical silver can also be held in a precious metals IRA. The best solution is to work with a reputable dealer to purchase your silver. They can advise you as to the best form to purchase as well as set up a buying plan. They will also be able to help you with any questions you may have about investing in silver for your IRA.

If you are interested in buying or selling silver, contact U.S. Coins and Jewelry, Houston's most trusted source, at 8435 Katy Freeway in Houston or call 713-597-6367.



Collector Strategy For 2021: Building A Centennial Year Set As we enter the New Year, most of us are glad to put 2020 behind us. The events of the past twelve months have forever changed the landscape of numismatics. But in hindsight, it isn’t all bad news. Stay-at-home orders have allowed collectors to reinvent their collections. Taking the extra time to review, research, and reassess their holdings has made many better-fine-tuned collectors. During
Luxury Watches
What Is The Resale Value Of A Rolex Watch? The time has come, and now you’re ready to sell your beloved Rolex. You know that Rolex is an iconic watch brand, but you don’t know much about the history of your specific watch. So, you’ve gone down a rabbit hole about how to go about selling your Rolex. What is the resale value of my Rolex watch? Has the value of my watch gone up or down? Is my Rolex considered vintage? W
The Origin Of The Peace Dollar The Peace dollars were struck in 90% silver between 1921 and 1935. This coin series is steeped in historical lore and was born from international demand for the precious metal contained within it. As such, the type remains popular for investors because of its content and is inexhaustibly collected and studied for its rich history, shear availability, and quintessential design.   How The P
Collecting Morgan Dollars The Morgan Dollar series is one of numismatics most collected series. Born from the Bland Allison Act of 1878 and created by engraver George T. Morgan, the issue was released for circulation beginning in 1878, running continuously until 1904, and again transitionally in 1921. The art of coin collecting is a flexible framework and smart collectors work within guidelines to achieve a set of specific



We share educational articles, specials, and general updates. Be the first to be in the know. 

US Coins hosted my son’s BSA Scout Troop to help them work towards earning their Coin Collecting merit badge. They were very helpful and willing to answer all of the questions that they had. My son wanted to get as much written down on his worksheet as possible before leaving, and Ms. Johns was kind enough to sit down with him and go through the remaining requirements that did not involve actually building a collection. A lot of us parents looked at buying US Mint Proof Sets for our Scouts, and their prices were very good. Thank you to US Coins for being great community members!