Bullion may be a smarter investment than many experts believe. The previous decade has seen a remarkable increase in the value of bullion over the value of finished precious metal products. This includes investments in coins and other collectable items. There has also been a large amount of silver and gold bullion purchased during the past five years to protect wise investors during the recession.
The silver industry has been one of the top performers over the last twenty years for all markets. The price of silver bullion has increased by as much as three hundred percent over the past twenty years, while silver coins have only increased by two hundred percent. According to the January 1 report from the Wall Street Journal, silver out performed gold, according to the latest commodities reports from Wall Street.
Purchasing bullion, as compared to coins, may seem to be a lower risk investment. This is because the value of coins, while holding steady during the past year, may fall due to collectors retaining their collections. This is because coins increase in value based on the number in circulation, so smart collectors will hold their coins until there is a drop in the market. Then they will sell them to get the most gain.
The difference with bullion is that there is no reliance on outside sources to determine the value of the precious metal. Silver and gold bullion retain the value of the metal. Since the investor is not trying to buy or sell finished products, finding a buyer is easier and most cost efficient.
The silver market is also more stable than most other precious metals. This is because of the use of silver in the manufacturing industry. Many companies, from television makers to automobile manufacturers rely on silver to complete their products. There is also a large amount of silver purchased by the computer industry for use in circuit boards and other electronic components.
Overall, silver has outperformed many of the competing metals over the last few decades. Most of this performance can be traced to the manufacturing industry, with even companies outside of the United States relying on silver bullion for their products. There has also been large amounts of silver and gold purchased by world banks. This is to help protect their investors during a recession. Even if the value of other stocks fall, the precious metal bullion will retain at least the value of the metal, which cannot always be said for silver and gold coins.