Is the Buyer's Market for Silver Coming to an End? / Commodities / Gold and Silver 2018
Fewmarkets are as depressed – and, as many analysts argue, suppressed – as silver.Prices for the white metal continue to languish in a low-level trading rangeamidst lackluster demand.
Theupshot for investors is that they can nowobtain silver bullion at both a low spot priceand a low premium above spot.
Howlong this buyer’s market will is unknowable last. But given silver’smanic-depressive personality, prices could launch explosively higher at anytime.
The silver market now sitsenticingly close to a major upside breakout.
Theweekly silver chart shows a potential double bottom forming at the Septemberand November low points.
Priceswill need to clear the $14.75 - $15.00/oz resistance zone before bulls canfinally celebrate a rally of some significance. [Silver prices entered this zone on Wednesday.]
Forthe moment anyway, value investors can continue to take advantage of fantasticbargains in the silver bullion space.
Silver for Barterand Trade
Oneof the top attributes of silver is its versatility. It comes in a wide range ofshapes and sizes, including some that are particularly well suited for barterand trade.
Silveris often overshadowed by its pricier counterpart, gold, when it comes todiscussions of sound money. Yes, gold is more likely to be held in reserve as amonetary metal for backing a currency. But silver is more likely to beexchanged by individuals in actual, everyday transactions.
Itisn’t practical to pay for a cup of coffee using a gold coin. Factional sizedsilver coins, however, can closely approximate the prices of just aboutanything on a coffee shop’s menu:
A90% silver dime is worth just over a dollar in terms of its intrinsic metalcontent.Asilver quarter, about $2.85.Asilver half dollar, $5.70.Ahalf ounce pure silver round, $9.00.Anda one ounce silver round, $16.60.Pre-196590% silver coins may command additional historical/scarcity premiums abovetheir melt value in the future. You can obtain them now at regular bullionprices, giving you a free “call option” on rising premiums.
Silver for WealthBuilding
Everysilver investor should have some small denomination coins/rounds for barter andtrade. Beyond that, those looking to allocate significant wealth to silver willfind larger size products more cost effective and more convenient to store.
Conventionalone-ounce coins/rounds are a good place to start as they are widely recognized.Most privately minted rounds are just as pure (.999 silver) as more famousgovernment minted coins such as silver American Eagles.
Theadvantage to opting for products with no official coin status is they tend tocarry lower premiums – thus giving you more metal for your dollar.
Serioussilver stackers should consider larger bullion bars, which tend to be the mostcost-effective way of building wealth in silver. Silver bars are available in 1oz, 5 oz, 10 oz, kilo, 100 oz, and 1,000 oz sizes.
The1,000 oz bars are generally not recommended except when holding in a Comexdepository. These bulky bars are difficult to handle and ship, and, unless heldin a Comex warehouse, may need to be assayed before selling.
Thelargest bar most investors should consider owning is the 100 ouncer. It’s nottoo heavy to handle and can be easily sold back to dealers.
Thecombination of low silver prices and low retail premiums on silver coins, bars,and rounds is a market condition that has only existed in the past 18 months.But both premiums and spot prices appear to be on the rise once again.
Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.
© 2018 Stefan Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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