Investment silver

Why choose investment silver?

Along with investment gold, investment silver is one of the preferred assets for saving by people looking for long-term security and protecting their investments against inflation. Although compared to the yellow metal, silver is a little more volatile but it retains it’s value over the long term.

An advantage of investment silver is it’s relatively low price, which makes it very affordable and suitable for various purposes: savings, gifts and collecting, in the case of certain silver coins. Silver is also an excellent tool for anyone starting to invest in precious metals.

From its lower price compared to gold, derives another of its advantages – the possibility of divisibility of the investment. This is essential because it gives us the ability to convert the products we own into smaller amounts of money when needed. Thus, we do not have to sell a product with a much higher value.

For example, the purchase of 30 silver coins weighing one troy ounce each provides greater divisibility than a one kilogram silver bar, even though we ultimately hold investment silver of the same weight.

Silver is an exhaustible resource and is vital to almost all industries, not just jewelry and technology. Over 50% of annual silver production is used for industrial purposes and it has over 10,000 different uses, making it the second most used commodity after oil.

It is much easier to list the industries in which it is not used than those in which it is involved, and it is no exaggeration to say that the world we live in would be impossible without silver.

Its guaranteed demand, which grows over time and its stable price performance (in the last twenty years its price in euros has increased sixfold) are among the reasons why investors consider it a reliable long-term asset.

Silver: a metal with a past and a future

The white metal has been used as money throughout the millennia, including in Romania, the first “lei” being Dutch silver coins. Investment silver coins still serve this function today, as they are legal tender at face value in their countries of origin.

Speaking of the history of silver as money, it is interesting to note that in recent centuries the price ratio of gold to silver was about 15:1. For example, in 1717, the great scientist Sir Isaac Newton, who was also director of the London Mint, fixed the exchange rate between the two metals at 15.5:1.

This means that 15.5 troy ounces of silver were equivalent to one troy ounce of gold. The last time, and for a very short period, such a ratio was observed was on January 8, 1980. Over the past four decades or so, it has increased considerably, reaching an average of 90:1.

For this reason, many believe that, in the modern world, the price of silver is underestimated and that the white metal has great growth potential.

What do we need to know when investing in silver? 

The silver coins and bars offered by Tavex are produced from pure metal (.9999 purity) and are globally recognized and liquid. They can be sold almost anywhere in the world for a known amount. Specifically, we at Tavex update our prices every 10-15 minutes to track as closely as possible the international price of silver in Euros.

Unlike investment gold, investment silver bars and coins in Europe are subject to VAT.

As it is a soft metal, it is advisable that investment silver coins are kept in the protective capsule with which they are delivered. We also advise that they be handled with gloves and protected from damage caused by drops or other types of impacts, as this will reduce their resale value.