Why Are American Silver Eagle Coins a Good Investment Now
Why Are American Silver Eagle Coins a Good Investment Now
?Like other precious metals, silver is often used as an
investment. Although no longer considered to be legal
tender in the US, silver has been regarded as a store of
value and a form of currency throughout the world for more
than 4,000 years.
If you compare the price of silver to the price of gold you
would see that silver is considerably more volatile. That's
because there are fluctuations in the way silver is used.
There can be large fluctuations between store of value and
industrial uses that affect its valuation. And, because
silver has lower market liquidity than gold its volatility
also is greater.
Silver still often tracks the price of gold because of the
intrinsic value of the metal. However, the gold/silver
ratio can vary by quite a bit. The lower the ratio the more
expensive silver is when you compare it to gold.
In 1792 the United States fixed the gold/silver ratio by law
at 1:15. This meant that you could buy 15 troy ounces of
silver with one troy ounce of gold. During the 20th century
the ratio was 1:47. In other words, on average, one troy
ounce of gold would buy 47 ounces of silver.
On September 22, 2010 gold hit a new high. At the close of
the market one troy ounce of gold was selling for $1,291.20.
At the close of the market the same day, one troy ounce of
silver was selling for $21.30. On that day the gold/silver
ratio was 1:67. In other words, one troy ounce of gold
would buy 67 ounces of silver.
Silver has been appreciating rather dramatically since 2005.
To put things into perspective, the yearly cumulative
average price of silver in 2000 was $4.95. In 2005 the
yearly average cumulative price rose to $7.31. Throughout
2009 the average cumulative price of silver was $14.67.
It appears that silver is rising in price very dramatically.
Perhaps it's because people are concerned with the economy.
Since the global recession began in 2008 investors have been
increasing their demand for precious metals. That's because
when inflation increases precious metals have historically
increased in value.
One of the most popular ways to invest in silver is to buy
silver coins. One example is the American Silver Eagle
bullion coin. The American Silver Eagle is the official
silver bullion coin of the US. It is only struck in one
troy ounce sizes and is guaranteed to contain one troy ounce
of 99.9% pure silver.
Theses coins sell for a very small premium over the spot
price of silver. Because of that American Silver Eagle
coins have become one of the most popular ways many people
use to invest in silver.
Why Are American Silver Eagle Coins a Good Investment Now
By: dandan Why Christmas Hampers Are So Appealing The Introduction Of Timberland Fashion Boots And The Ways Of Cleaning And Keeping Boots South By Southwest Festival Draws thousands annually to Austin Watch USC vs Washington Statelive stream NCAA College Football week 4 There are a wide variety of fine lodgings available in Ft McMurray when touring the Athabasca Oil Sands and Plants Six Tips For A Leisurely Trip Through Morocco Holiday Firm Offers Unforgettable Northern Lights Holidays Why Hiring A Best Value Escort, London Should Be About More Than Just Price Travel Services at Orlando Airport Removals London: A Timeline For Simpler Moves American Financial Solutions Achieves Iso 9001:2008 Certification What To Look For When Hiring An Escort, London The Evolution of the Christmas Tree