Right now, a number of market experts are predicting that silver will be a savvy place for an investment.
Experienced precious metals broker in Cardiff Fred Brett, of GCIL Bullion, says: “After the Brexit vote, there is a lot of fear in the market. We’ve seen the demand for silver increasing. There also isn’t as much of a supply as there used to be.”
Mr Brett has three key reasons why you should buy silver at the moment:
1. The price is on the rise
The price of silver has steadily fallen for the past five years – until a month ago. Then, silver began to bounce back.
Mr Brett says: “Over the past month, I’ve charted the price of silver. It has gone from £10.90 an ounce to £14.56 an ounce (prices as of July 1).
“That’s a 31% increase in the price in one month.”
Jitters before and after the Brexit vote have filtered into price rises for both gold and silver. There is a growing demand for precious metals as people try to offset fears about inflation and economic instability
Many forecasters are pointing out there is a finite supply of silver in the world. As demand for silver begins to outstrip supply, the price will rise again.
Many investment banks are reportedly buying into silver at the moment as they bet on the price increasing.
2. Silver is accessible and gives you a better return on any investment than a bank
Because its price is lower than gold’s, buying silver could be a good way of getting your money into precious metals if you’re on a budget. It also gives you a good return on your investment.
Mr Brett says: “Compare the price per ounce of silver with the price of gold, which is over £1,000 an ounce, and you can see that silver is a more accessible choice for those who don’t have large sums to invest.”
Last week, Governor of the Bank of England Mark Carney warned of further cuts to UK interest rates as he moved to stabilise the economy.
That’s not good for savers and investors. If you have a few hundred or a few thousand pounds sitting in an ISA or a savings account, you can’t hope to get the same yield as an investment in silver or gold from the interest rates on offer at the moment.
3. Silver will always retain a certain value
With any investment, there’s a risk. However, whatever happens in the precious metals market you won’t lose all of your investment as could happen if you put your money into stocks and shares. Precious metals like silver always have an intrinsic value – though, of course, the value of investments does rise and fall.
Mr Brett says: “The face value of silver is £2 an ounce so that’s the minimum you’ll get back.”
GCIL Bullion, which has bases in Cardiff, Nottingham, and Edinburgh, has hundreds of regular clients who buy silver and gold bullion – some on a monthly basis.
The company, established in 2009, offers a guaranteed next-day delivery service for those who buy to store their own silver and gold, or a storage facility. It also offers single coins for sale under its My First Coins Arm – from as little as £25.07 for a silver coin. They are popular as Christening and 21st birthday presents.
Mr Brett adds: “Some customers buy 200 or 300 coins a month, others 1,000. Our service is fully insured and people buying coins can do that online. If customers want to make regular investments in bullion, we’re here to advise them.
“Customers are liable for VAT on purchases of physical coins, but those we store at our secure facility don’t leave the depository and so aren’t liable for VAT.”
If you’re interested in investing in silver, visit gcilbullion.co.uk or call 02920 786462.
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