Silver 101

How to invest in Silver

About Silver

Exploding into record high territory, silver’s shining performance as affordable protection from inflation is appealing for portfolios of all sizes.

As more Americans awaken to the global effects of the devaluing U.S. dollar, rising inflation, shaky markets, radical terrorism and the new age of surging electronic advancements, physical silver offers an affordable advantage for anyone at any financial level looking to participate in this silver boom market.
As gold enters into new bull markets, both seasoned investors and beginners are choosing silver to diversify their precious metals holdings and protect their retirement accounts and other long-term savings.

Predominant buying of silver, due to both its phenomenal growth and increasing industrial demand, has created a record-breaking year in silver prices.

Vienna Philharmonics silver coin
four silver coins

With intrinsic value that is indisputable, the simplicity of physical silver offers a welcome change from complex investments. It is easily liquidated and provides the balance and diversification that smart investors today know is critical to a successful investment strategy for the long term.

Owning the two predominant monetary metals in the world, gold and silver, helps insulate your investment dollars from risk and can offer greater potential for growth.

Whether you are looking to invest $50 or $1,000,000 plus, the funds in your investment portfolio held in physical silver are shielded from devastating economic events and the continued erosion of the value of the U.S. dollar. In today’s uncertain economy, silver is beneficial to anyone seeking a sound and stable strategy for protecting their assets. Capital Gold Group is here to provide you with the knowledge you need to move forward with confidence.

History of Silver

Since early civilizations, silver has been used as a store of value and a medium of exchange wanted for its beauty and imperviousness to the elements by many cultures throughout the world.

Even before it was used as money, silver was valued. In 2500 BC, silver was first introduced in Egypt and was considered more valuable than gold! In 475 BC, China was the first to monetize silver as a currency, a currency that was kept official until the 1930s. Today, silver is not only valued in coinage, but also for use in many industrial, household, and medical products.

Under the colonization of the Americas after 1492, great amounts of silver began to flow from the New World to the old, with the silver mines established in Bolivia and Mexico giving rise to large silver coins. Within decades after Columbus’ discovery, silver coins were minted in the Americas and shipped to Spain.

PAMP Multigram Portfolio silver single 2.5g
proof Silver American Eagles case - side profile

Given the reduced or even non-existent link between the value of currency and the value of precious metals since the Great Depression, silver has gradually ceased to be used in the manufacturing of ordinary circulating coins. For this reason, coins are now made of silver for two main reasons:

  1. Special commemorative coins minted for sale to coin collectors.
  2. Bullion and proof silver coins, which are primarily sold to collectors because although they are legal tender, they are not expected to circulate.

Fueled by global demand, a shrinking U.S. dollar, terrorism and unstable world markets silver prices have witnessed an upward surge, driving investors and banks to flock to the white metal. See our historical trends charts to track the continued success of silver in today’s economy.

Silver Bullion

In the world of precious metals, silver spends a lot of time in the shadow of its big brother, gold, but over the past two years, gold prices have increased by about 50% while silver has shot up more than 150%!

Bullion may come in coin or bar form and its value is principally based upon its precious metal content plus the cost of production, which rises or falls with the spot price.

You may already be familiar with bullion coins such as the American Silver Eagle, the Canadian Silver Maple Leaf, Silver rounds, and the Silver Austrian Philharmonic. These easily recognized coins and bars allow collectors and institutions to move in and out of silver bullion easily and swiftly, which is important in bullion transactions. Bullion’s value, as mentioned above, relies solely on its weight in silver (or gold) and fluctuates with the market.

The current silver inventory held above ground totals 1 billion 400 ounces, and the annual industrial amount used is 900 million ounces and growing. Comparatively, gold inventory above ground is 3 billion ounces and the industrial amount used is 20 million ounces. Over 45 times more silver is used each year than gold!

two silver bars

Uses for Silver

Are you aware of all the household and industrial uses for silver?

With the global demand outstripping the supply, the laws of supply and demand point to silver continuing to rally over the next decade and beyond. Below are some of the fields that this precious white metal is used.

Silver is a precious metal with properties that make it a well sought after component for many products. Silver is the best conductor of heat and electricity of all the metals and is a powerful antibacterial agent. Silver is also the most reflective of the metals in addition to being malleable and ductile. Although silver is the most plentiful and least expensive of the precious metals, it is in actuality relatively scarce due to the high demand for its unique properties, which restrict its substitution in most applications in industrial and household markets.

one uses for silver in photovoltaic cells - solar panels
silver American Eagle coin

Silver demand comes primarily from three major sectors: industrial, jewelry, silverware and photography. Together, these categories represent more than 95 percent of annual silver consumption. Silver is also high in demand in the medical field because of its antibacterial and antiviral properties.

Because of its wide variety of uses, silver is not just known as a precious metal, a store of value, a work of art or an industrial metal: It is all of these things!

Discover how silver is indispensable, working all around us to improve the quality of our lives.

Solar Energy

Silver paste is used in 90 percent of all crystalline silicon photovoltaic cells, which are the most common type of solar cell. As prices of fossil fuels rise, scientists and engineers are very interested in the promise of solar cells to produce electricity.

Jewelry

Silver jewelry has been a standard in many countries since the 14th century and is highly prized for its brilliant luster and ease of fabrication.

Water Purification

Silver is fast becoming part of water purification systems in hospitals, community water systems, pools and spas because silver ions prevent bacteria and algae buildup. It is replacing traditional methods that use harsher chemicals

Medical

Because silver is resistant to bacteria, it is used in the production of surgical tools, catheters, needles, stethoscopes and even bandages for burn victims. It is also often used in the furniture and door handles used in hospitals.

Silverware

The properties that make silver ideal for jewelry also cross over into silverware. In many instances, copper is mixed with silver to toughen it for use as cutlery, bowls and decorative items such as picture frames.

Batteries

Many batteries are manufactured with silver alloys. The most common of these batteries are silver-oxide cell batteries which are used in everyday products such as cameras, toys, hearing aids, watches and calculators.

Coinage

Silver has been used as a medium of exchange and value since earliest recorded history. Until the late 19th century, most nations were on a silver standard with silver coins.

Photography

Silver-based photography is based on light striking sensitive silver-halide crystals suspended on a film. Approximately 5,000 color photographs can be taken using one ounce of silver.

Electronics

Silver’s electrical conductivity makes it a perfect choice for many application in electronics such as printed circuit boards and switches. It is also used to coat CDs and DVDs and in plasma display for TV and monitors.

2016 silver American Eagle proof coin