Last Updated on October 22, 2020 Posted by Colonial Acres Coins
Silver investors in Canada have been purchasing the metal at an increasing rate in 2020, with price surges quickly outpacing that of gold. As a result of these increases, the often large gold-silver price ratio is narrowing. The price surge can be attributed to a variety of factors including the COVID-19 pandemic and an increase of generalist investor interest in the precious metals market. Despite the surge, experts estimate that silver is still undervalued compared with gold and now could be a good time to increase your investment portfolio. Read below to find out more about silver bullion Canada and why costs are surging:
What Is Silver Bullion?
Silver bullion is a piece of highly concentrated silver that derives its value strictly from its metal content, which is typically 99.9% pure. Bullion is usually intended for investment purposes and typically comes in coins or bars.
Unlike pieces of rare jewellery or coins, there is no artistic value in silver bullion; the value comes from the metal itself. In fact, it is possible to buy silver bullion ranging from 1 to 10 kilograms in weight.
Silver bullion coins are manufactured by governments, including the Royal Canadian Mint, for sale to individuals. The rigid standards imposed by governments make tracking purchases simple. The number of coins you purchase, regardless of where you bought them, is equal to the ounces of silver you own.
Why Are Prices Surging?
Silver prices have increased sharply in the past year. In Canada, the price of the precious metal surged 67% from December 2019 to August 2020. Silver sold for nearly $30 per ounce in August. Prices have not been this high in over seven years.
The worth of silver is surging because of a number of factors. First, the fear of inflation and an uncertain economic future due to the current COVID-19 health pandemic is causing prices to increase. Other reasons for the price increase include previous metal scarcity and the fact that the millennial generation is getting more interested in the investment market.
What Does the Price Increase Mean for Investors?
For most new or inexperienced investors, government-issued silver bullion coins are an easy and safe way to invest. The government that makes a coin must guarantee the purity, content and weight of each piece of silver it sells. Therefore, the value of the bullion is guaranteed, making the resale process simple.
Even though silver prices have surged in 2020, experts estimate that the metal is still being undervalued. Therefore, now could be a good time for experienced investors to purchase silver bullion in Canada. If you have experience navigating complicated transactions, you may be able to make a sound financial investment that will pay off as the global economy begins to recover.
For less experienced silver investors, don’t worry about the value surges too much. The precious metals market is likely to even out as the global economy begins to recover. Also, because silver is still cheaper per ounce than gold, it is still a sound financial investment. Silver prices tend to be more volatile than gold prices, but they always even out eventually. Coins are considered by experts to be a good investment that can generally withstand the volatile world financial market better than some other investments out there.
Colonial Acres Coins Sells Silver Bullion Canada
If you are looking to invest in silver bullion coins, look no further than Colonial Acres Coins. We sell a variety of Canadian coins, U.S. coins, world coins and paper money. We guarantee the value and quality of all of the coins we sell. If you are looking for a rare coin or a deal on silver bullion, visit our website today.