The purity of the metal is one of the most significant factors to consider when investing in gold or silver. Silver and gold are generally soft metals; thus, they are typically alloyed with other metals to make them tougher. However, since even a slight change in purity can significantly impact the overall worth of the metal, it's important to know how to measure the purity of silver using multiple metrics.
What are karats?
The purity of the metal is one of the most significant factors to consider when investing in gold or silver. Silver and gold are generally soft metals; thus, they are typically alloyed with other metals to make them tougher. However, since even a slight change in purity can significantly impact the overall worth of the metal, it's important to know how to measure the purity of silver using multiple metrics.
What are karats?
When purchasing gold in various forms, purity is sometimes measured in "karats." For example, karats are commonly used to measure gold jewelry. The purest type of gold is 24 karats; however, a millesimal purity of 990 is sufficient to achieve this grade. Since karats are not an accurate enough unit of measurement, they are not used to determine the purity of gold and silver bullion. However, you can calculate the "fineness" of precious metals by dividing the karat by 24 and multiplying the number by 1000. For instance, a necklace made of 12-karat gold has a purity of 50% (12 divided by 24x1000).
The minimum purity criteria for gold differ significantly across countries. Hence, you should be aware that what qualifies as 24/18 karat gold in one country may not necessarily be the same in the UK when trading in gold and silver overseas.
Measuring the purity of the silver
- The finest purity of silver measures .999, and like gold, it is mainly measured using millesimal fineness.
- 99.99% (999.9) of silver is considered ultra-fine silver. An example of ultra-fine silver is the Canadian Silver Maple Leaf coin.
- Silver that is 99.9% pure is fine silver (999). This is applied to silver bullion bars.
- Sterling Silver has 92.5% silver. This is identified as 925 on silver items. Sterling silver has 92.5% silver by weight and 7.5% another alloy, usually copper. Usually, sterling silver is used in jewelry and silverware. So if your jewelry is not labeled "sterling silver" or "925," it's probably not sterling silver.
- These marks, which are imprinted on the metal itself, serve as clear indicators of the purity of the metal.
- Coin Silver contains 90.0% silver (900). This is the level of purity of silver coins used in American coins. Before 1965, coins such as quarters, dimes, half dollars, and silver dollars were minted of coin silver. If you have any old American coins that date to 1964 or earlier, they are silver coins.
- You may have older Mexican silver that is 98.0% silver. Britannia Silver, which has a silver content of 95.84%, is sometimes used to make English silver items, particularly jewelry, and some bullion coins. Britannia Silver can be marked with the number 958 and/or other markings.
- 80.0% silver is the standard purity of silver found in Canadian silver coins that are currently in use.
- The silver content of other antique European silver items could range from 87.5% to 75% silver.
- There are currently only two effective ways to confirm the marked fineness of precious metals. One of these involves complete melting to separate the various metals contained therein. This is referred to as assaying the metal.
- The other method for measuring the metal content is using X-ray fluorescence. This method, however, is not 100% accurate because it only measures the exterior portion of the metal and may be tricked by heavy plating. It is usually recommended that you buy silver coins through a reputable broker or dealer because it can be challenging to identify the true purity of precious metals. This way, you can be confident that you're getting what you pay for and not getting ripped off.
Top 5 Reasons to Invest in Silver
Due to its popularity as a tangible safe haven asset and its many industrial applications, silver is in high demand. According to several financial analysts, industrialists, and geologists, the world is approaching a silver scarcity every year. Silver is in more demand than gold because of its distinct chemical composition and properties. Gold is desired, whereas silver is essential! Recently, there has been a huge shift in the supply-demand curve for silver, and as a result, it is quickly becoming a top asset for cautious investors. Here are the top reasons to invest in silver
Capital Growth
One of the benefits of investing in silver is that its price rises during bad times when other asset classes fall. In addition, silver expires after use in various industries, including medicine and photography. This indicates that the total amount of silver available globally actually reduces daily. With rising worldwide demand, it's noticeable why silver has a high potential for capital growth.
Silver is cyber-crime proof
Most asset classes, including equities, cryptocurrencies, bonds, futures, cash in bank accounts, etc., are traded on electronic exchanges over computers. Since hackers become more savvy and audacious every day, this increases the risk of cybercrime. Cybercriminals raid virtual accounts, hack exchanges, and release viruses to destabilise investors. However, hard assets like silver are not at risk of cyber-attack.
Control
A portion of your wealth can be protected from the banking system and financial institutions' various collateral risks by purchasing silver coins or bars. Unfortunately, many investors disregard the significance of this benefit of silver.
Capital Preservation & Inflation Hedging
One of silver's main advantages, like those of gold, is that it serves as a refuge of protection. The value of traditional currencies has decreased dramatically due to massive levels of sovereign debt and paper money issuance. As an alternative form of wealth storage, precious physical metals like silver should be considered. In addition, political upheaval in many worldwide locations affects the security of investment markets, prompting many investors to purchase precious metals to protect their portfolios' capital values.
Diversification
Due to the safe haven nature of precious metals, one of the reasons to invest in silver is that it can provide vital hedging and balance to a varied portfolio of assets. By balancing the entire portfolio risk with a proportion of silver, investors can enhance their appetite for risk in other asset classes. In addition, the physical possession of silver in the form of bars or coins offers extra diversification from traditional paper assets, which are currently under threat from the global financial crisis.
Is Buying Silver a Good Investment?
It's natural, and even smart, for an investor to consider whether or not a specific item is a suitable investment. Since silver has a smaller market and less status than gold, this is especially true of silver. Silver can perform better than other metals when economies restart growth and serve as a significant buffer during economic downturns due to its numerous industrial uses.
Fundamentally, investments in silver have done well over the past ten years. For the past ten years, silver has provided profitable returns. On the heels of investors pouring cash into the commodity to escape market turbulence in 2011, silver hit a spot price of $48 per ounce. Hence, it's clear that silver, like gold, is more than just a physical asset. It serves as its form of currency and offers investors a practical way to protect themselves from market risks.
Because the price ratio of gold to silver is 80:1, silver is a significantly more reasonable investment vehicle for an investor looking to park assets in precious metals. As a result, when compared to gold, an investor can buy silver coins in larger quantities. Small and medium-sized investors may afford it, and buying and selling silver is simple, with a public spot price and also no haggling needed!
Conclusion
If you want to invest in silver, the best option is to buy bullion. Bullion is the purest form of gold and silver and is available as bars or bullion coins. Silver coins are highly collectible and make wonderful keepsakes to be passed from generation to generation. In addition, investing in silver coins like the American Eagle, Silver Britannia, Silver Krugerrand, and other global coins diversifies an investment portfolio. At BOLD Precious Metals, we have a comprehensive selection of gold and silver bullion, including legal tender coins made by the Royal Mint and gold bars in different sizes, ranging from 1 oz. to 1 kg. Visit the website to buy silver coins and bars today!
