Most private investors were unfamiliar with the silver spot price trade, and for a very good reason: It was practically inaccessible to them. With silver spot prices dropping below the $20 mark per troy ounce during the summer, there seemed to be a feeling of disbelief that there would be a rebound any time soon.
But the market surprised us, as it so often does, and is now showing signs of a swift recovery. The price of silver is rising to appealing levels, so it would be wise to take advantage of some of the opportunities that arise, and ensure the best price for your silver.
Silver spot price trading as it used to be
Silver is regarded as a form of legal tender for more than four thousand years. This was until the end of the silver standard in the 1970’s when silver lost its role as a legal tender in many developed countries including the United States.
Nowadays, silver is traded in the silver spot market, an internationally distributed market in which professional bullion market traders from around the world accept a common set of rules and standards regarding the trade of silver.
Professional bullion dealers, however, do not deal with private investors. They only deal in large quantities of bullion at a marginal profit, which only becomes attractive to them due to the volume of the trading, and more often than not, they may buy and sell many times within a day.
If you are interested in buying a few bars of silver for your portfolio, your business does not concern the bullion dealers. Furthermore, there are matters of cost of storage and security, as well as other technicalities an individual investor should not have to worry about.
Silver spot price set by investment companies in today’s silver market
On the other hand, it is always to the investors’ best interest to be able to make the best deal for their investment . Many banks used to offer contracts for buying silver, in physical form, bars or coins, even paper silver, but only on the condition that you deposited your money on an interest-free account. That has worked for some investors in the past, but increasing interest in silver as a form of investment, especially after the sharp rise in the price of gold in the last three years has brought new rules to the game.
Large companies investing in silver and gold, such as coininvest.com, have their own professional dealers and suppliers, and can thus offer you prices that are surprisingly close to spot market prices, and with a wide variety of choice in weight.
These companies adopt mutual fund logic for their strategic investment capitals, thus achieving maximum leverage in their transactions. This is a benefit to their customers’ who pay only a small premium. In addition to low prices, silver and gold investment companies offer additional services such as safe shipping and insurance, usually at much less cost that banks are asking for, so check the market for the latest silver spot prices.