Types of Silver Investment
The conventional way in which people invest in silver is the buying of actual silver bullion bars. In some European countries like Switzerland, the banks offer ‘over the counter’ trading of these. The bars are flat and rectangular in shape. They are considered ideal because they can be easily stored at home or at a bank in a safe deposit box. These bars come in many different sizes. The most common of are 1000 oz troy bars, I kilogram bars, 10 oz troy bars and 1 oz troy bars.
Coins & Rounds
Silver coins are another form in which silver can be brought. These can either be fine or junk silver. The difference is that junk silver coins are older coins and the percentage of silver is lower. A perfect example of fine is the Canadian Silver Maple Leaf coin which is 99.99 percent pure.
Some people tend to opt for the .999 fine silver rounds for their investment and storage purposes. They usually contain one troy ounce of silver and are shaped in the form of a coin. They are produced by a large number of mints and can be customized as per convenience. The prevailing silver prices per ounce are used to determine prices.
In this form of trading, the investor has access to the silver markets without the hassle of owning physical bars. These include ishares Silver Trust, ETFS Physical Silver and Sprott Physical Silver Trust.
If investors are not interested in storing the actual bars they can have a Silver certificate of ownership. Using this they can continue to trade in the market without having to transfer actual physical silver. The only government guaranteed program in this respect is the Perth Mint Certificate Program (PMCP). Until 1968 the US Dollar was also issued in lieu of the silver certificate.
This is similar to the Silver Certificates other than the fact that in this case the bank provides an account to the investor corresponding to his needs where silver can be traded just like foreign currency.
Derivatives, CFD’s & Spread Betting
Silver futures and other such derivatives can be traded on certain exchanges in the global markets. These contribute in determining silver prices per ounce. Most Silver futures trading in the USA takes place on the Commodity Exchange (COMEX).
In this form of investment you are not directly dealing in silver. Instead, you are dealing in the shares of Companies that mine silver. As silver is found in conjugation with other metals like tin and lead, these shares are actually a base metal investment.
More reading: The Prospects For Silver