How To Protect (Hedge) Your Fortune (Wealth) With Gold & Silver

Courtesy of: Visual Capitalist

While these are all market risks that billionaires are concerned about, it’s worth mentioning that these kinds of events are almost impossible to predict or forecast. Despite the unlikelihood of them occurring, they all have the potential to impact markets – and that’s why billionaire investors are always active in hedging their investments.

Why are billionaires so concerned about their fortunes? After all, don’t they have lots of cash to protect themselves? It’s worth noting that on a relative basis, billionaires often aren’t very liquid at all. In fact, the majority of their net worth is usually tied up in their businesses (such as Jeff Bezos with Amazon) or other long term investments, and the value of these assets and investments fluctuate with the market. That means a big market movement could wipe out millions or billions of dollars in the span of hours. For an extreme example of this, just look at Mark Zuckerberg (the founder of Facebook), who saw his net worth plunge approximately $6 billion in just one day in the wake of his company’s most recent privacy crisis.

About Jeff Bezos – Mini Biography

Jeffrey Preston Bezos is an American technology entrepreneur, investor, and philanthropist, who is best known as the founder, chairman, and chief executive officer of Amazon, the world’s largest online retailer.
Born: January 12, 1964 in Albuquerque, New Mexico.
Height: 5′ 7″
Spouse: MacKenzie Bezos (married in 1993).
Children: 4
Education: Princeton University (1986), Miami Palmetto High School, River Oaks Elementary School.

Why Invest In Silver?

Why Silver ?
• Silver is an industrial metal: unlike gold, silver
is consumed and the number of industrial
uses is multiplying
• Best natural conductor of electricity and
heat, used in electronics, batteries, solar
panels, alloys & coatings, LED & RFID chips,
semi-conductors, photography, antibacterials,
preservatives, medicines
• Silver is a precious metal: like gold, silver is
money and its role as a store of value and
a hedge against monetary inflation is
• Currency debasement is not new –
governments throughout history have
“printed” money; eg. falling silver % in
the Roman Denarius coin.

What Is Goldmoney? Peter Schiff’s Goldmoney MasterCard

Above: What Is Goldmoney? Peter Schiff’s Goldmoney MasterCard.

Goldmoney is a global full reserved gold based financial services company founded by James Turk, Roy Sebag, and Josh Crumb. The company operates under the Network, Wealth, Physical, and Insights subsidiaries which offer full reserve precious metal focused financial services encompassing savings, payments, wealth services, dealing, execution, custody, and research. Goldmoney Inc. was formed as a holding company following the acquisition by publicly listed BitGold Inc. of the Goldmoney business in 2015. The company subsequently changed its name to Goldmoney Inc. The company has over 1,500,000 clients and total customer assets of 1.8 billion representing 34.1 tonnes of gold making it one of the largest privately owned gold reserves in the world.

Top Comments:

I’ve had a Goldmoney account for a couple of years and it works flawlessly. Just be clear that it’s function is to preserve your purchasing power, it’s not a get-rich-quick scheme. Brilliant system.

Can we have a card which stores silver instead of gold?

Great video. Peter Schiff makes a lot of sense with how Goldmoney works. Going to open an account today.

Sorry Peter, but what you are saying is misleading. You cannot use Goldmoney debit card to spend gold. It is prepaid card, you have to sell your gold first to charge the card with fiat currency of your choice and then at the merchant, you spend that currency, not gold. Yes, that is what he said and it is wrong.

Compare these 2 scenarios:
1) buy a hamburger and pay with Goldmoney card
2) hamburger cost 5$ and necessary amount of gold is sold at that moment to pay for it in dollars

1) sell certain amount of gold for fiat currency the Gold money card is issued for (dollars, euros, …) to charge the prepaid card with the currency, lets say you charged your card with 100$
2) week, month, year etc. later, buy a hamburger and pay with Goldmoney card
3) the card is already charged with 100$ and 5$ is subtracted to pay for hamburger

Gold money card is from B scenario. You have to sell gold in advance to charge it with fiat currency. In other words, when you buy the burger, no gold is sold to pay for it.

Well duh, the hamburger is priced in dollars. You would be basically be asking GoldMoney to evaluate your Gold in real time every time you made a purchase. The long-term purpose is for retailers to accept gold in itself as a form of payment. This is the point Peter is speaking to. At that point, there would be no conversion and the scenario you are hoping for wouldn’t be necessary. As a consumer, I don’t want each and every purchase to be dictated by the fluctuations of the value of gold based on the dominance of fiat currency. I would never know how many dollars that hamburger actually cost because you could have bought it at a point where the market value of Gold was low and 5 minutes after buying the burger the prices spiked. That burger would have then cost you much more than the anticipated price.

“You would be basically be asking GoldMoney to evaluate your Gold in real time every time you made a purchase.”

Sorry to break the news for you, but that is how it works when your card is issued in euros and you buy something in dollars. So why would I expect anything less.

So many Bitcoin vs Gold arguments, why not own both? Throw in some Equities, Bonds and Currencies as well.

I feel like i just watched a 20 minute commercial for this dudes gold selling company.

Why do Goldmoney accept cryptocurrency? That’s crazy. It show that even they trust it.

Risks Of Gold Ownership & Risks Of Silver Ownership

Above: Risks Of Gold & Silver Ownership.

Top Comments:

There is a broader risk to gold ownership and that is loss of emotional control. You touched on it when you discussed buying in at the highs and selling below the buy point, which is related to emotion; however, it runs far deeper than that. Gold is a very emotional metal because it tends to attract very passionate people. Almost every emotion a person has can be amplified by the addition of gold.

Gold just sits there doing nothing? Yup, I think tthats the point. for me anyway. sure it wont reproduce on its own, but it wont vanish just because a new company comes out with a better usless gadgit either. Sure i have other money that does cute tricks but i love my lazy old gold the best :)

I’d much rather have assets in gold and silver than the paper fiat currency we have now. I feel we are on the edge of another financial meltdown and if your money is tied up in stocks and bonds, you can kiss it goodbye when the crap hits the fan. I would consider food storage as wise investment…..we always have to eat, right?

I never look at gold in cash terms.. I look at gold in what it will buy
People say gold doesn’t earn a dividend or income but that depends on what you call an income/dividend..
You put $10000 in a savings account and you buy $10000 in gold
In 20 years time you look at your savings.. your cash has made 40% interest (20×2%) but lost 80% through inflation (2% interest -6% inflation = -4%x 20)
Your gold hasn’t done anything but it will buy the same as it bought 20 years ago.. Which 10k has lost most value?

wrong … stock market you can easily have 5-10% on interest by year. but what happens when the stock market crashes, i think its best to invest in both. yep diversification is the key .. I bought gold and I bought stock market … now I’m happy for my gold.

Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present. 

Totally agree! Gold & silver has been an enduring currency for thousands of years. Like you say it doesn’t earn dividends like an investment but then it doesn’t lose money like an investment. It just sits there silently day after day riding along with it’s value fluctuating on the precious metals market with paper currency. So you bought 1 oz. of gold at $1000. Over the next 20 years or so inflation (like death) is a certainty & $1000 doesn’t have the same buying power it did as in the past but is only worth $600! You can’t buy that 1 oz of gold anymore for $1000. That 1oz. of gold you bought 20 years ago now has a market value of $1400. It is also possible for that 1oz. to rally up in value in a short time because of market volatility. For sure gold does not have the liquidity of cash which can be used to buy anthing at any given time but it’s value will always rise in time because of inflation. Remember…diversification is an important hedge in any investment.

Forget Gold Miners: The Best Stocks To Invest In Gold

In modern times, investors looking for a way to profit from gold and other precious metals can choose from a very unique and different group of gold stocks: royalty and streaming companies.

In exchange for up-front payments to the gold mining companies, royalty and streaming companies get rights to gold, silver, and other precious metals at present prices or receive a percentage of mineral production from a mine. This makes companies like Royal Gold (NASDAQ:RGLD), Franco-Nevada (NYSE:FNV), and Wheaton Precious Metals (NYSE:WPM) less subject to the significant capital costs of sustaining operations at a mine, or the varying price of the metal.

Gold miners are certainly worth considering if you are interested in gaining exposure to gold and silver, but gold royalty and streaming companies offer much more compelling investment opportunities because of their higher dividends, excellent free cash flow generation, and high profit margins. In addition, between Royal Gold, Franco-Nevada, and Wheaton Precious Metals, investors have several choices that give them varying degrees of exposure to gold, silver, and other precious metals.

Bitcoin In A Disaster Scenario – Cash & Gold Are King During Hurricanes

Above: Bitcoin In A Disaster Scenario – Cash & Gold Are King During Hurricanes.

The devastating hurricane strike of Puerto Rico proves that Bitcoin’s value in the area affected collapses to ZERO when the power grid goes down. Unlike gold and silver, your ability to access your bitcoins can vanish in an instant. Food, water, and gasoline are what matters during an emergency. If you need electricity for bitcoin, then during an emergency or disaster it will have little to no value. The same with people with credit cards or people that write good old fashioned checks.

The Gold Silver Ratio

What Is the Gold-to-Silver Ratio, and Does It Matter?
If you’re a precious metals investor, you should understand the importance and limitations of this ratio.

For investors, there are no shortage of investment opportunities to choose from. There are thousands of different stocks, countless mutual funds, and a seemingly endless number of corporate and government bonds to consider investing in. However, one of the more popular investment opportunities since the beginning of 2016 has been precious metals.

The popularity of precious metals grows
According to the World Gold Council, gold demand wound up increasing by 92.9 tons in 2016 to 4,309 tons. Interestingly, a number of key drivers, such as jewelry demand, central bank demand, and technology-based demand, were down year-over-year. However, electronic-traded fund (ETF) inflows reached nearly 532 tons last year, which was the second highest level on record, and is indicative of investors’ growing desire to own a piece of the yellow metal. The more cash that flows into precious-metal ETFs, the more physical metals those ETFs are required to buy.

Similar strength was seen in the silver market, with estimates from the Silver Institute in November calling for record demand for the metal. Much like gold, silver saw a drop off in physical demand for jewelry and industrial purposes, but a pretty rapid rise in ETF-based demand.

Perhaps the biggest (and never-ending) debate among precious-metal investors is what metal, gold or silver, is best suited for your investment portfolio. One of the most commonly turned to ratios to help answer this question is the gold-to-silver ratio.

What is the gold-to-silver ratio?
Put simply, the gold-to-silver ratio describes how many ounces of silver it would take to equal one ounce of gold. In the 1800s, the gold-to-silver ratio was right around 15-to-1, implying that the physical price per ounce for gold was 15 times higher than that of silver. While volatile during the 20th century, the gold-to-silver ratio averaged 47-to-1. As of the Feb. 13, 2017 close for both precious metals ($1,224.70 an ounce for gold and $17.80 an ounce for silver), the gold-to-silver ratio has ballooned to 68.8-to-1.

Some investors use the gold-to-silver ratio to determine which metal looks poised to outperform the other. If the gold-to-silver ratio has fallen below its 20th century average, gold would presumably be the metal investors would want to buy. Conversely, if the gold-to-silver ratio has jumped above its average throughout the 20th century, silver could be the more attractive option.

It’s also worth noting that silver has a tendency to be more volatile than gold because of its lower daily trading volume. In simpler terms, when precious metals are outperforming, silver has a tendency to overshoot its yellow counterpart to the upside. When precious metals are stuck in a bear market trend, silver has a tendency to tarnish much faster than gold.

Does this ratio matter?
Now for the important question: does the gold-to-silver ratio really matter?

To some degree, having such an extensive history on how the prices of gold and silver relate to one another can be useful for investors. Today’s ratio of nearly 69-to-1 would certainly suggest that silver could be the more attractive investment opportunity if (key word here) precious metal prices are heading higher.

However, I think it’s important to recognize that the gold-to-silver ratio isn’t a primary investment factor or a catalyst by itself. It’s a secondary factor to consider long after you’ve examined the real catalysts driving gold and silver prices.

So what really matters?

For starters, it’s important to pay attention to the Federal Reserve’s stance on monetary policy, as well as interest rates. Arguably the biggest driver (both higher and lower) for precious metals is opportunity cost, or the act of passing up a near-guaranteed return in one asset for the opportunity to generate a larger return with another asset. If interest rates remain low, as they’ve been for the better part of eight years, investors who choose to buy interest-bearing assets (such as bonds or CDs) may lose real money to the inflation rate. On the flipside, if interest rates rise, then investors may swap out of precious metals and into interest-bearing assets since they can net a higher guaranteed return, pushing the prices of gold and silver lower.

Supply and demand are also important drivers for precious metals. In recent years, gold and silver mining companies have reduced their capital expenditures and, in the process, tempered supply side growth. At the same time, ETF and investment demand for gold and silver has increased, causing prices for gold and silver to move higher.

Finally, fear and uncertainty are important catalysts that tend to drive investors into gold and silver. The more uncertain growth prospects are in the U.S., and the less confident consumers are with the U.S. economy, the more liable gold and silver prices are to head higher. Remember, the U.S. is a consumption-driven nation, so any weakness in retail sales figures or GDP growth can suggest that gold and/or silver may be a safe-haven investment.

Long story short, feel free to add the gold-to-silver ratio to your arsenal of tools to analyze precious metals and metal-mining companies, but make sure your investment thesis doesn’t primarily revolve around the gold-to-silver ratio.

Silver’s use as an industrial metal can harm its price during economic slowdowns, it’s secondary use as a monetary metal can benefit it’s price during periods of decreasing faith in government. Silver is significantly more abundant than gold in the earth’s crust, this makes it easy to find new supply and silver mines will come on line to drive the price back down if there is a sudden burst of demand. This could provide silver a period of a year or two where it outperforms gold. This can be measured using the gold/silver ratio. When the gold/silver ratio drops below 40, I HIGHLY SUGGEST selling everything related to precious metals, as that number has historically indicated a massive public rush into the metals, which results in the prices reaching a long-term peak in value.

Given the above facts, I feel it is better to own gold in periods of economic weakness and silver in periods of growth. Silver is more appropriate to use as a speculative vehicle, while gold is more appropriate as a means of saving and protecting wealth. If you’ve ever tried selling a few thousand ounces of silver, it’s a hassle! Selling the equivalent value in gold is quite easy. The same argument applies to hiding/storing large amounts of gold and silver.

The current gold/silver ratio is around 72. This means it is definitely appropriate to accumulate silver and silver related investments at this time as a means to speculate in the financial markets. As the number declines (from around 70-50), it indicates the public is becoming interested in the monetary metals. As interest peaks (let’s say, around 30-40), one must be prepared to sell their speculative positions. Gold will decline less than silver when the peak has been reached, suggesting one should cut all speculative positions in silver and gold related assets and potentially hold just a small core position in physical gold.

In summary, gold and silver related investments are both a good buy at this time. Gold will have less volatility due to the large above ground stockpiles. Silver will likely outperform gold at some point, but when it does, you must sell, because the outperformance is a temporary phenomenon and will not continue indefinitely. Both investments have strong fundamentals supporting them. Understanding the underlying drivers for the price of gold and silver helps us to allocate our investments appropriately at different times in the investment cycle. The current gold/silver ratio above 70 indicates a healthy allocation towards silver related investments is appropriate at this point in the cycle.

Gold/Silver Ratio is near an extreme. This ratio demonstrates a lack of investor interest in the monetary metals when the ratio is above 70. It demonstrates a mania to participate in the monetary metals when the ratio is below 35. Each time the gold/silver ratio has gone above 75, it has been an acceptable time to buy silver, gold, or silver and gold stocks. Each time the ratio went below 35, it has been an excellent opportunity to sell precious metals and their related investments.

Thanks for the quality analysis! We sell bullion for physical ownership, and field questions every day with regard to which metal makes the most sense. We tend to lean toward heavier silver currently with the ratio still at 75:1. Interesting point that when the ratio is closest, prices are the highest due to last minute entry of the small investors into the silver market. But we have a long way to go to get there and silver seems to be a relative bargain, even with the gains this week.
If you feel holdings should be trimmed significantly when the ratio drops under 40, presumably because of a spike in price, where would you suggest the small investor put his proceeds? It makes sense that the Dollar would be a poor choice, and stocks may be riskier at that point as well. It seems to me staying put and riding out the storm might be a better choice; at least the metal isn’t going anywhere.

I’m pleased you enjoyed my article. Regarding your question about what to do when the ratio drops below
40, buying the dollar would
Have been a wonderful decision last time. Next time,
I will have to see prices
Of assets around the world to make a decision, ill post a new article at that time.
I realize many gold and silver investors abhor the dollar, however, there are many times when the dollar has been the appropriate place to park cash. I sold a lot of my gold and silver related investments last time the ratio went below 40 and purchased real estate in the Detroit metro area (there had been an approximately 70% crash in the housing
Market). This created a dollar cash flow from rentals. These
Properties have since 2-3x in value while gold and silver have declined significantly.
We’re back at the time
To sell real estate and buy gold and silver. Best regards.

What Is The Spot Price Of Silver? Silver As An Investment, Silver Spot Price, Silver Exchange Traded Funds (ETF Funds), & Silver Futures | How To Invest In Silver Bullion, Silver Coins, Silver Futures, & Silver ETFs

What Is The Spot Price Of Silver?

When people refer to the silver spot price or the spot price of any metal, they are referring to the price at which the metal may be exchanged and delivered. In other words, the spot price of silver is the price at which silver is currently trading around the world. Silver spot prices are in a constant state of discovery and the silver spot price is constantly being watched by banks, financial institutions, silver dealers, and retail investors located around the world.

Silver as an Investment
Since the beginning of the 21st Century, silver prices have increased overall, catching the attention of many investors. Many people look to precious metals, such as silver, to help protect themselves against the ongoing devaluation of the U.S. dollar (or other fiat currencies) and volatility in the stock market. Other investors, sometimes referred to as “preppers,” believe silver will play a key role in bartering and trade in the event of an economic collapse.

Silver is available for investment in many different forms, including paper silver and silver bullion. Physical silver bullion is most commonly found in coin, round and bar form with several size options for each. Some investors enjoy owning government-minted coins while others prefer paying lower premiums for bullion bars and rounds. In any case, there are a vast amount of options available in terms of this investment vehicle.

Aside from bullion, “paper silver” is also available in the form of ETFs and certificates. These options are different from physical silver bullion in the sense that the owner never actually gets to hold the silver in their hands. A silver ETF or certificate is basically a piece of paper that says a bank or financial institution is holding a specified amount of silver for you without you ever seeing that silver.


When you buy Precious Metals, you invest in an asset class that is as old as civilization itself. Not surprisingly, these ancient storehouses of wealth can play important roles in a modern portfolio.

Because the global supply is relatively finite, Gold’s relative purchasing power has historically remained stable during inflationary times.

An ounce of Gold and Silver is the same ounce of Gold and Silver with the same recognized value anywhere in the world. This makes the physical metal easy to trade.

Some coins stay in families for generations. Even over decades of time, each recipient realizes the value of their inheritance. Physical Precious Metals can be a means of passing tangible wealth onto future generations.

Precious Metals prices generally move independent of stocks and bonds. In a downturn, they could provide the one bright spot your portfolio needs. Their low correlation to other assets makes Precious Metals ideal for balancing any portfolio.

Market timing is difficult for any investment. That is one reason many investors look beyond day-to-day price movements and buy physical Gold or Silver as long-term investments. When planning to hold an asset like physical Gold for 3-5 years or more, it is less important to consider the current cost of the metal and more important to examine its historical performance in relation to other investments.

Depending on your budget, personal objectives and investment time horizon, you may consider a dollar cost averaging investment strategy. Dollar cost averaging is a conservative approach that involves dividing the total sum to be invested into equal amounts and investing those fixed amounts at regular intervals over time. This approach enables you to scale up or down with the market.

Silver was the first metal used as currency more than 4,000 years ago, when Silver ingots were used in trading. When you purchase Silver, you are buying an asset valued since ancient times. Recognized innately by humans as valuable, Silver has always been a viable investment and commodity. But what makes Silver a good investment now? Why is buying physical Silver a good idea today? Let’s examine what makes buying physical Silver a great investment and collecting opportunity.

As there is a finite amount of Silver in the world, Silver’s relative purchasing power tends to remain stable. For example, in 1985, the cost of an ounce of Silver would just about buy two movie tickets. Allowing for some peaks and valleys in the market, today, one ounce of Silver costs slightly less than a pair of movie tickets while the price in dollars has tripled. Silver prices do fluctuate, but they generally move independent of the stock market. If you want a stable investment that can protect your purchasing power long term, consider buying Physical Silver.

Similar to the function of Gold in an investment portfolio, Silver can provide balance to your investments. Because Silver prices move independent of stocks and bonds, physical Silver may be the stable element your portfolio needs in the event of a downturn.

Additionally, Silver is recognized the world over as carrying intrinsic value. If you would consider selling or trading your Silver anywhere, at any time, you know there will always be a market for it.

Now that you understand why buying Silver is a good use of your investment dollar, you may need guidance regarding how to buy physical Silver. Luckily, buying physical Silver is easy. If you choose an established, well-regarded Precious Metals company, you can buy with confidence. Buying physical Silver should be an enjoyable part of your investment journey. Consider working with APMEX to experience the thrill of buying physical Silver. For example, you may choose a beautiful 1922 Silver Dollar. The 1922 Silver Dollar has bullion value due to its Silver content, as well as collectible value due to its brief minting.

The great thing about buying physical Silver is that there is absolutely no wrong reason to get started. Even if you simply find Silver captivating and want to own some, buying physical Silver from ZARZAR ensures you will be making a good investment choice.

Silver Spot Price FAQ
How is the spot silver price calculated?

Silver is a commodity that trades virtually 24 hours per day across many exchanges such as New York, Chicago, London, Zurich and Hong Kong. The most important exchange, however, when it comes to determining the spot silver price is COMEX. The spot price of silver is calculated using the near term futures contract price. By near term, that may mean the front month contract or the nearest contract with the most volume.

How often do spot silver prices change?

The price of silver is constantly changing. The spot price of silver changes every few seconds during market hours. Between domestic and foreign exchanges, spot silver prices update Sunday through Friday, from 6PM EST to 5:15PM EST each day. Spot prices remain static during that 45 minute down period from 5:15PM EST to 6PM EST each weekday, as well as from 5:15PM EST on Friday until 6PM EST on Sunday. Although silver and other markets may have periods in which they are very quiet, they also have periods in which prices change very rapidly.

What currency are spot silver prices quoted in?

The silver spot price is usually quoted in U.S. dollars (USD). However, markets all over the world can take the spot silver price in USD and simply convert it to local currency.

What exactly is the spot silver price referring to?

The spot silver price is quoting the price for 1 troy ounce of .999 fine silver.

Are spot silver prices the same all over the world?

Yes, the price of silver is the same all over the world. Exchanges and markets all over the world can take the current spot silver price in USD and convert that price to local currency.

Why can’t I buy silver at the spot silver price?

Silver is sold by dealers with a premium to the current spot price. When one is looking to sell metals to a dealer, the dealer may offer spot or slightly below the spot price for one’s metals. The dealer premium, as it is often called, represents the price at which a dealer will buy silver and the price at which a dealer will sell silver. The difference between the spread represents the dealer’s gross profit. This is how dealers make profits and stay in business.

What is the difference between bid and ask prices?

The bid price is the maximum offer available for a particular commodity at the present time. The ask price is the minimum asking price available for a particular commodity at the present time. More simply, if you want to buy, you will pay the ask price. If you want to sell, you will receive the bid price.

The difference between the two is referred to as the “bid-ask spread”, and often is a reliable indicator of an investment’s liquidity. The smaller the bid-ask spread is, the more liquid a commodity and the less “transaction fees” an investor will incur when getting into and out of investment positions.

Silver Futures and Paper Silver FAQ
What are silver futures contracts?

Silver futures contracts are an agreement for a buyer to purchase a fixed amount of silver from a seller, at a fixed price, at a specific time in the future. A simple example would be a buyer agreeing to purchase 5,000 troy ounces of silver, at $20/troy ounce, two months from present. If during those two months, the price of silver decreases $2, the seller would profit $10,000, as they could source the silver on the open market for $90,000 and then sell it via the futures contract for $100,000. If during those two months, the price of silver increases $2, the buyer would profit $10,000, as they have now purchased $110,000 worth of silver for only $100,000 cash.

Futures contracts also allow bullion dealers, including JM Bullion, to hedge their physical silver positions by electronically buying or selling metal out in the future to offset their physical inventory positions. As spot prices move up and down, the offsetting gains and losses between physical and futures positions ensure that movements in spot do not affect our company.

Metals futures contracts trade on a variety of worldwide exchanges, including the COMEX and NYMEX.

What is the COMEX?

The COMEX is the primary exchange for trading gold and silver futures contracts. Standard gold contracts are for 100 troy ounces of gold, while standard silver contracts are for 5,000 troy ounces of silver.

What is the NYMEX?

The NYMEX is the primary exchange for trading platinum and palladium futures contracts. Standard platinum contracts are for 50 troy ounces of platinum, while standard palladium contracts are for 100 troy ounces of palladium.

Could I buy silver by just buying a futures contract?

One could buy a silver futures contract and take delivery; however, this is not what normally happens. Taking delivery on a silver futures contract involves additional fees and costs, and one is limited in the product type. In addition, the amount of silver is fixed as one regular silver futures contract equates to 5000 ounces of silver.

What about leveraged or paper silver products? Are the prices the same?

The spot silver price is the price at which silver may change hands and be exchanged right now in the physical form. The spot silver price should not be confused with say the price of a silver based ETF, where an ETF’s price may be based on multiple factors.

Silver Price Factors FAQ
What are some things that can cause silver prices to change?

The price of silver is always in flux never sitting stagnant for very long. There are many different factors that can potentially affect silver price fluctuations. These factors may include, but are certainly not limited to: supply and demand, currency fluctuations, inflation fears, geopolitical risks, and asset allocations.

Do mining companies have any say in the price of silver?

The price of silver is determined by the laws of supply and demand. That being said, if the price of silver drops too low, then mining companies may elect to slow down operations and simply mine less silver. The fact is, if the price of silver gets too low, then these companies may mine silver but operate at a loss due to mining costs. Should silver fall to very low price, then these mining companies may scale back operations in an attempt to wait for higher prices or slow the supply of their silver reserves to the market, thus helping to bring the forces of supply and demand back into balance.

Why does silver trade around the clock?

The demand for silver is constantly changing. World markets are in a constant state of price discovery. Many other commodities and investment products also trade around the clock.

Is the price of silver too volatile for most investors?

While silver prices can be volatile at times, there are also times when prices are relatively quiet. In addition, many customers buying physical silver are buying it as a long-term investment and understand that short-term price fluctuations may be volatile.

When looking at silver prices and trying to make a forecast, I have heard people speak of the gold/silver ratio. What exactly is this?

The gold/silver ratio is simply a formula for determining how many ounces of silver it takes to buy one ounce of gold. Simply take the price of gold and divide by the price of silver — that is the ratio. Investors may use the ratio to try and determine the relative value of silver or gold and see if a potential buying opportunity may exist.

Someone told me silver prices are trending lower-is this true?

Silver has certainly seen some ups and downs in its price over the years. Since 2011 silver prices trended lower for years after nearly reaching the $50 per ounce mark. Lately the silver price has been going sideways for some time.

Other Silver Price FAQ
Is physical silver taxed?

In the USA, certain states have sales tax on silver bullion products. Depending on which state you are located in, and where you purchase your silver, you may be liable to pay sales or use tax on the purchase. For more information on individual states, reference our local buying guide.

How many grams are in a troy ounce of silver?

Silver is measured in troy ounces. Each troy ounce contains about 31.1034768 grams of silver, which is slightly higher than a standard ounce which has only 28 grams.

How many troy ounces are in a kilogram of silver?

There are 32.151 troy ounces in one kilogram of silver.

If spot silver is at $20 per ounce, why are some coins selling for over double that amount or more?

The spot price of silver may be only one factor to determine the value of a silver coin. Silver coins can have value not only for their silver content but also for any collectability or scarcity that they may have. While regular silver bullion coins will usually be not too far from the current spot price, a collector’s numismatic silver coin may sell for the spot price many times over. This is once again the laws of supply and demand at work.

I’m a new silver investor and just want to acquire as many ounces of metal as I can. What types of silver bullion products will get me the most ounces of silver for my U.S. dollars?

If you are looking to acquire as much silver as possible, then you may want to try and buy silver products as close to the spot price as possible. You will want to focus your buying efforts on the most cost-efficient bullion bars, coins, and rounds available. Silver rounds offer a great selection and relatively cost-efficient way to start stacking. In addition, products like silver bars of varying sizes and coins, such as American Silver Eagles and Canadian Silver Maple Leafs, may potentially be a good choice too.

Does the face value of a silver coin affect its worth?

Silver coins generally carry a small face value making them legal tender in their respective country of origin. That said, legal tender silver coins are generally priced based on their silver content. Although silver coins may be legal tender, they are not typically used in day to day transactions as their precious metal content value is usually far greater than their legal tender face value.

Do silver bars of the same type have a cost difference related to their size?

Silver bars will typically get less expensive on a per-ounce basis as the bar gets bigger. For example, a one ounce Sunshine Mint silver bar may sell for $22.68 while a 10 ounce Sunshine Mint silver bar may sell for $219.60. If you do the math, you’ll see that on an ounce for ounce basis the 10 ounce bar is a much better deal at only $21.96 per ounce compared to the one ounce bar at $22.68 per ounce.

Does the spot silver price include dealer markup or shipping costs?

The spot silver price does not reflect a dealer premium or any associated costs. Dealers will use the spot price to determine pricing by taking the spot price and adding their markup. These markups can range from less than one dollar to thousands of dollars over the spot price depending on the product and scarcity.

Are dealer premiums a fixed amount or percentage over the spot price of silver?

While dealers will use a fixed amount over spot, such as $.99 over spot for ABC coin, dealer premiums can and do change based on market conditions and product. There is no fixed percentage markup that is set in stone.

Am I going to lose money because the dealer will buy from me at spot or under the spot silver price?

While losing money is always a possibility with any type of investment, just because there is a dealer spread does not necessarily mean one will lose money on their silver holdings. For example, if one buys a silver round at 75¢ over the spot silver price, and one wanted to sell it back immediately, then yes he or she would likely lose money. In addition, should silver prices fall with all other factors being equal, he or she will lose money. On the other hand, should the spot silver price rise, it may rise more than enough for the purchaser to make a profit over and above what they originally paid for their bullion product. Most buyers of physical silver bullion buy their investments for the long-term and are not concerned with short-term day-to-day price fluctuations.

Can I get a similar price going to a local coin shop that I can buying silver online? They would both simply markup the spot silver price correct?

Dealer markups in precious metals are no different than in any other business. Dealers have a cost of doing business that they must take into account, and then they must have some type of profit margin in order to stay in business. Brick and mortar store dealers often must charge higher dealer premiums due to the higher cost of doing business. This is why in many cases one can buy precious metals from an online dealer at a lower relative cost.

If silver prices are constantly changing, how can I lock in a price when making a purchase?

Different dealers have different procedures when it comes to locking in a price. At JM Bullion, when you add products to your Cart, the product prices are “fluid” and will continue to change until you advance to Checkout. Once you advance to Checkout, your prices are locked in and displayed on the right side of the checkout form. These prices are final, and are held for 10 minutes while you complete the checkout process. If you take longer than 10 minutes to complete the checkout process, you will have the option to approve the new, updated prices to finalize your order.

Is the silver market price manipulated?

Silver price manipulation has been a hot topic of debate for some time. There is plenty of information available online for one to research and try to draw his or her own conclusions.

Where can I buy physical silver?

Right here on our website, of course. JM Bullion offers a wide variety of quality physical silver bullion products for purchase 24 hours a day, 7 days a week at the lowest prices in the industry. Browse some of our selection at the links below:

Silver Bars
Silver Coins
Silver Rounds
Please note that JM Bullion is the only major retailer in the industry currently offering FREE SHIPPING on all orders to the United States. This allows our customers to keep their transaction fees on silver bullion purchases at an absolute minimum.

How much money do I need to buy silver?

You can get started with as little as $100 (our minimum purchase). We offer a wide range of 1 oz and even fractional ounce silver products that start as low as $3 per piece. Many investors prefer silver to gold given that you don’t need a huge amount of capital to start investing in silver bullion.

Can I put silver in my IRA?

Yes. We work with a number of silver IRA custodians who provide “self directed IRAs”, which allow the investor to purchase physical silver bullion and receive the IRA tax benefits on the investment. To learn more, read our full page on bullion IRA investing.

Why Silver Will Reach $130 And Gold $8,000 Per Troy Ounce

Above: Why Silver Will Reach $130 And Gold $8,000 Per Troy Ounce.

Is 2018 the year of the silver rally? Keith Neumeyer, CEO of First Majestic Silver Corp., thinks so and expects the metal to climb eightfold over the next 3-5 years. He says silver is a story of supply and demand: “to go green, to do all the things we want to do as the human race gets off oil and gas, we need a ton of silver.” He says that unlike gold, silver is a strategic, rather than precious metal, and should trade closer to its mine ratio. “[First Majestic] is currently operating at a mine ratio of 9 ounces of gold for every ounce of silver, so silver should be trading at around 9:1.” Currently, the gold-to-silver ratio stands at around 76 and that is why Neumeyer says he sees silver prices headed for $130 an ounce.

Why I Am Buying Silver Instead Of Bitcoin

Above: Why I Am Buying Silver Instead Of Bitcoin.

Top Comments:

Your next video should be titled: Why I want to be poor (but own SIlver) as opposed to being rich by buying Bitcoin, making a killing, and then buy Silver monthly with profits…. Stackers are idiots! 10 straight years of consistent losses. And you still are betting everything that SIlver is going to the moon! Yeah, any second now! So foolish. If you could have broken out of your cognitive dissonance you could have bought Bitcoins for pennies in 2008. January 2017 Etherium was $1.50. today it’s $260. Because people listened to idiot stackers, they missed out on a once in a lifetime opportunity. You were wrong then, and you are wrong now. It’s not too late to get into Bitcoin, Ethereum, and Litecoin. Save yourself from this stupidity. Buy BOTH but right now is the time for cryptos.