The Value of Silver
Gold and silver both have a monetary value: they can protect us during times of currency devaluations and inflation. It is a store of value, which means you can store it and use it afterwards as its value is still there. The appealing aspect now is that the value of silver has been increasing for ten years in a row (at the moment of writing, being May 2012). And all indicators are signaling that this is just the beginning.
A higher silver price means a better value of silver
The value of silver per ounce is determined by supply and demand. As a general trend, the supply for silver has not been able to keep up with the growing demand for it. That’s because the demand for investments in silver has been rising. At the same time, the silver is being used in an increasing number of industries as raw material for consumer and industrial goods. Silver is actually all around you: your laptop, mobile phone, jewels, light switch, electrical products like TVs or washing machines, your car, mirrors, solar panels, batteries, etc.
Silver coins’ value
Silver coins have a long history of being a store of value. In a lot of civilizations, silver was the most important means of payment.
Similarly today, silver coins can store value in a climate of decreasing values of currencies (dollar, euro, yen, etc). When buying the most traded coins, the value of those coins is based on the silver price along with the metal content in the coin. Examples of those types of coins are the American Eagle, Austrian Philharmonica, the Canadian Maple Leaf, or the Mexican Libertad. But rare coins can be worth multiples of the metal content in the coin.
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