The talk shows are full of the high price of gold, especially since the soundness of the American dollar seems to be eroding. However, gold prices rise and fall regularly enough to scare many. It may be time, however, to consider another precious metal as a hedge against hard times. Finding out how much is silver worth to you today and in the future is considered a survival skill by many financial advisers.
Gold and other valuable metals rise and fall in value according to various economic and social conditions that exist worldwide. It's important to understand these forces and their effects, just as you would want to understand how the stock market operates and why stock prices move up and down. Metals are traded - bought and sold - on the commodities market; they are tangible assets rather than shares of ownership in corporate entities.
Silver and gold can be bought in bars, called ingots. They also can be made into coins. Ingots have a value according to their weight. The same is true for coins, although they may have added value if they are in mint condition, are rare, or have historical significance.
An ounce of silver is not like an ounce of sugar or flour. Troy ounces are used for this measurement; this is an ancient measuring system developed in medieval France and still used today. There are twelve troy ounces to a troy pound, and bars are made in 100 to 5,000 troy ounces. A troy ounce is a little heavier than the ounce used to weigh foods.
The commodities value of this metal changes from moment to moment. The price is influenced by supply and demand, changes in other commodities, and the relative prices of world currencies. When the dollar is 'weak', in that investors have less confidence in the world reserve currency, precious metals rise in price. Investors buy, hold until the price rises significantly, and then sell to make a profit.
There is another factor in evaluating the worth of this valuable metal. There is a school of thought that gold might be confiscated by the government (this has happened before.) Ingots of precious metal may also be hard to use as currency in an emergency. For this reason, coins are considered by some the best investment. Merchants will be glad to accept them, especially if paper money is devalued.
'Junk-silver' is what coin dealers call American coins with merely intrinsic value. Their worth is calculated according to the weight of precious metal in them. Dollars, half-dollars, quarters, and dimes dated before 1965 are 90% pure. On troy weight value, a dollar would be worth over $10 on today's market. Some survivalists recommend having $1,500 worth of 'junk' for each member of the family, to be used in case of an emergency to buy necessities.
Investing in precious metal might be a good idea, depending on your objective. As an investment to be bought and sold, metals are more volatile and risky than stocks might be. However, economic conditions can make metals more attractive and less likely to drop in value. As an emergency asset, they might be even more valuable in hard times.
Gold and other valuable metals rise and fall in value according to various economic and social conditions that exist worldwide. It's important to understand these forces and their effects, just as you would want to understand how the stock market operates and why stock prices move up and down. Metals are traded - bought and sold - on the commodities market; they are tangible assets rather than shares of ownership in corporate entities.
Silver and gold can be bought in bars, called ingots. They also can be made into coins. Ingots have a value according to their weight. The same is true for coins, although they may have added value if they are in mint condition, are rare, or have historical significance.
An ounce of silver is not like an ounce of sugar or flour. Troy ounces are used for this measurement; this is an ancient measuring system developed in medieval France and still used today. There are twelve troy ounces to a troy pound, and bars are made in 100 to 5,000 troy ounces. A troy ounce is a little heavier than the ounce used to weigh foods.
The commodities value of this metal changes from moment to moment. The price is influenced by supply and demand, changes in other commodities, and the relative prices of world currencies. When the dollar is 'weak', in that investors have less confidence in the world reserve currency, precious metals rise in price. Investors buy, hold until the price rises significantly, and then sell to make a profit.
There is another factor in evaluating the worth of this valuable metal. There is a school of thought that gold might be confiscated by the government (this has happened before.) Ingots of precious metal may also be hard to use as currency in an emergency. For this reason, coins are considered by some the best investment. Merchants will be glad to accept them, especially if paper money is devalued.
'Junk-silver' is what coin dealers call American coins with merely intrinsic value. Their worth is calculated according to the weight of precious metal in them. Dollars, half-dollars, quarters, and dimes dated before 1965 are 90% pure. On troy weight value, a dollar would be worth over $10 on today's market. Some survivalists recommend having $1,500 worth of 'junk' for each member of the family, to be used in case of an emergency to buy necessities.
Investing in precious metal might be a good idea, depending on your objective. As an investment to be bought and sold, metals are more volatile and risky than stocks might be. However, economic conditions can make metals more attractive and less likely to drop in value. As an emergency asset, they might be even more valuable in hard times.
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