Investing In Silver Bullion Bars For Minimal Risk

This February has not been the greatest time for investing in precious metals. The market retains its own logic and investing in silver bullion bars sounds very promising at this point.

Technically it appears that this is a good time to entrust your savings in silver bars and silver bullion coins. Silver is the leveraged play on gold (something like a price tug-of-war), and a very useful prediction tool for investors and analysts is the silver/gold price ratio.

Silver typically outperforms gold when prices go up, while it sinks deeper when prices turn the opposite direction.  This is a purely technical volatility, part of the periodically engineered manipulation of the market, and it essentially creates excellent short-term buying opportunities for silver bullion.

10 years of silver prices

Silver prices have seen a decade of remarkable ascent, starting from prices below $5 per troy ounce and forming a path that lead straight to the $30 mark. This was disrupted shortly by the Great Recession in 2008. Following the gold rush, silver went ahead of itself in 2010-2011, which lead to its consequent fall and return to the original course. In 2013 silver prices set a strong resistance point at $20 per ounce, which is the platform of the short term prognosis for the remainder of this year.

A practical guide for investors is the 160 ratio: dividing the spot price of gold by 60, you get the price of spot silver that makes a good buy on an upward market, while dividing it by 50 when prices are going up, you find the overbought price of silver you should avoid when you make your purchases. This means that presently silver is a catch at any price below $ 21.5 per troy ounce, with the price of gold at $ 1,300 per ounce (1,30060 = 21.6666), and a market that corrects last year’s discrepancies, while in the long run, a purchasing price of up to $ 23.5 is not at all unreasonable, in view of an upcoming bull market, should that occurs.

Nothing has changed to make investors reconsider their view that investing in silver bullion is a brilliant option .Silver remains an asset of great importance in times of stormy weather. It serves as a generally accepted medium of financial exchange, a standard of value, and a means to preserve and store purchasing power, which is in fact the closest you can get to the definition of hard cash. Silver is actually better than paper (or cyber) money, as it is undeterred by inflation or currency instability.

 Silver vs. gold bullion bars

But in reality something has changed for UK purchasers of silver bullion: seeking more revenue, government bureaucrats often aim at the taxation of accumulated wealth in the form of bank savings, or investment portfolios. This venture sometimes becomes an unjustified attack- as in the recent cases of Cyprus and Egypt and now in the UK- with even smaller portfolios and savings accounts falling prey to the demands of tax collectors.

Being aware of the situation, offer a great choice of silver bars, lowering their premiums and absorbing as much as possible of the end price.