Silver has been used as both an investment and money for more than 4,000 years. Although this precious metal has lost its status as legal tender in most nations, many countries still mint silver collectible and bullion coins which have nominal face values. Silver, like gold, is considered an excellent hedge against inflation, but unlike gold, it is heavily used in industrial production and due to its antimicrobial properties, it also frequently appears in medical instruments.
The value of the silver market is considerably smaller than the gold market. Because the physical demand for silver is less than $20 billion per year, silver’s price is easily influenced by either wealthy investors or institutions which acquire large silver holdings. A classic example of this is the Hunt Brothers and their entry into the silver market in 1979, which increased silver prices from $6 per ounce to over $48 per ounce.
Silver prices are also determined by supply and demand, as well as speculation. Silver is well known for its volatility and as a consequence its ratio to gold has varied widely throughout history, from an average of 47:1 during the 20th century to as low as 12:1 in the Roman Empire.
When purchasing silver coins or collectibles, it is crucial to buy from a trusted source that is reliable. LPM is a Hong Kong based dealer who has been in the metals business for over five years, and we maintain distributorships with a number of prominent mints, including the British Royal Mint and the Austrian Mint. We have many miscellaneous silver products that are highly regarded by investors and collectors alike so check them out today!