Reading time: 2 – 4 minutes
The act of saving your currency in our current society is almost purely digital. When we deposit our cash in the bank it is converted to digital form for our convenience and our future use. This simple procedure spares us from carrying all our hard earned cash and investments wherever we go.
But even though technology and electronic cash has found its way in our daily spending; silver as a monetary currency and savings tool is still saved and stored in physical form.
This is similar to a child’s savings concept where most of the quarters and coins that they have are stored at home in their own piggybank. Now, on a certain level, saving in silver is similar to saving your money in a piggybank. You physically have to store it and keep track of your money and its location inside your home.
A silver investment is similar. As most precious metal investors know, their silver investments can be kept physically secure inside a safe at home. This can be a difficult task for some, as they may have to purchase a safe that can hold enough silver bars or silver coins.
Another disadvantage that silver has is its bulk and size. Though it is easy to store a couple of silver bars inside your bag when going to the bank, it is still impractical and unsafe. Walking around the corner towards your local bank with you silver bullion inside your bag is not exactly the safest way to transport your investments. Some of these bars can weigh about 70 pounds!
Silver dealers and buyers are also very critical on the quality of silver that they purchase. Though the internet is filled with how-to articles on refining silver at home, and they are very practical in reaching out to aspiring investors in making silver, dealers and banks are quite hesitant when buying silver bars and coins that are not minted from a reputable company. So, although silver can be refined at home, selling it for value can be a problem.
And of course, there is the aspect of taxation. Now, unlike stocks, bonds and mutual funds in which the price value of your investment can be known immediately after the sale; silver investments can be trickier to value and may have a 20% taxation rate. Not only does this diminish your expected rate of return but it also shows that this investment does not exactly keep your investment in your own hands with your own value. The government will still have its share of your profits from this investment.
Silver may seem to stand on solid ground when it comes to withstanding economic downfalls, winters and inflation rates that can cause other investment values to fluctuate or evaporate. But silver is not perfect. So, it is all up to you on what suits your financial and future needs.
RELATED POSTS:
- Silver Investment – Saving Options
- Disadvantages of Silver Investments
- Advantages of Saving in Silver
- Saving in Silver
- Selling Silver
Email
Print
Comments on this entry are closed.