Silber

Is Silver A Good Investment in The Long Term?

While silver may not receive the same level of attention as gold, it shares many of the qualities as its golden peer and can claim a history that dates back almost as long. As such, there is a multi-century trading performance of silver to reflect on when assessing its investment qualities over the long term. Indeed, it is this enduring appeal, as well as it being a physical asset with a finite amount of supply, that has given silver status as an asset that holds its value over time and is a hedge against inflation. As for the investment case for silver, that can be split into two principal categories: first, as a safe haven asset, worth for an investor to have in their portfolios, to protect them at times of crisis;secondly, in contrast to gold, silver has considerable industrial demand, with the metal used in a wide range of technological applications, notably as a key component in photovoltaic cells for solar energy as well as a number of different elements of the drivetrain for electric vehicles such as Tesla. But how has silver actually performed versus other asset classes? And is it worth investing in the metal now? Silver performance vs stock market Both the stock market and silver are prone to periods of high volatility that can result in sharp gains and losses over a short period of time. Silver in particular is more prone to volatility than gold due to the lower trading volumes compared with its precious metal peer, which is one of the most traded commodities in the world. As such, these comparatively lower volumes can see silver suffer much wilder moves in both directions, than the steadier performer - gold. Yet while it shares the risk of volatility with equities, a crucial separating factor is that the main drivers for the stock market can often be met with a contrasting reaction on silver, making the metal a valuable diversification asset in any portfolio. For example, for the US equities, a weaker US dollar typically reduces these companies’ buying power on the export market. However, for silver, which is priced in US dollars, a weaker greenback often helps boost the metal’s price. Similarly, given silver’s perceived role as a safe haven asset, times of crisis on equity markets, when traders are seeking to take risk off the table, can be beneficial for silver. One area where these two assets can move in tandem is an improving industrial outlook with silver benefiting from the likelihood of increased demand for the metal while the companies that make up the stock market will also rise. While typically gold and silver move in close correlation, this industrial appeal of silver can see the close relationship between the two precious metals break down. Silver performance in the last 10 years Silver may have a reputation as a store of value over time but taking a snapshot of the last 10 years, dating back to 2012, holders of silver would have seen them lose money. Indeed, it was in 2011 that silver surged close to its all-time high, briefly trading above $48 an ounce, with the metal never coming close to threatening those levels since. Silver suffered a severe plunge in its price in 2013 before then trading in a broad range of between $14 an ounce to $22 an ounce from 2014 onwards before the start of the coronavirus lockdowns in March 2020 saw it sink below $13 an ounce to its nadir of the decade. The much-documented silver squeeze of early 2021 when the metal found itself the meme stock of the day among the Reddit community and broader retail investors pushed the price of silver above $30 an ounce for the first time since 2013. This squeeze highlighted both silver’s die-hard appeal among elements of the trading community as well as the metal’s potential volatility as it is difficult to conceive such a dramatic move being conducted by retail investors on gold. In early 2022, silver was a beneficiary of the rush to haven assets in the wake of Russia’s invasion of Ukraine in late February with the price climbing to close to $27 an ounce. However, the change in monetary policy by central banks to a more hawkish stance in which interest rates are set to rise over the course of this year saw silver punished, due to its lack of yield. As a result, the metal plunged to below $21 an ounce before recovering in recent weeks to near $22 an ounce. This potted history of silver’s performance highlights both the wide array of factors that can influence the price of silver as well as its volatility. Future of silver in the next 10 years Having endured a difficult last decade in which silver endured a rollercoaster that ultimately saw it lose value over that time period, what are the prospects for the precious metal to perform any better over the next decade? The key element to silver’s potential performance over the next 10 years lies in its demand from the industry. 2021 was a record year for physical demand with increased buying from the electronics sectors, notably photovoltaics, helping push consumption in excess of 1 billion ounces, according to the Silver Institute. 2022 is set to see another record year with demand growth again led by photovoltaics, which is set to more than double from where it was in 2012 to about 127 million ounces. Silver’s outlook is brightened by the fact it is used in key growth industries such as technology, solar energy and electric cars. Efforts to thrift the metal, where manufacturers try to minimise their use, have bottomed out with demand for silver now set to grow in line with the huge growth anticipated for these major sectors. Yet silver isn’t driven by industrial demand alone, with 2022 throwing up a war in Europe and the most aggressive series of interest rate hikes by central banks seen this millennium. The reflection back on the last 10 years shows how difficult future events are to foresee. Who could have predicted the rise of meme stocks for example? Where will silver be in 2032? In truth, no one knows. But the growth prospects of physical demand allied to a finite supply point to an asset that still has plenty of room to climb higher. Is silver still a good investment? Silver certainly has a role to play as a small part of an investor’s portfolio. It performs differently to other asset classes, offering diversification and its physical quality means an investor can never be left with absolutely nothing, unlike a company that goes bust for example. Silver investors have had to endure some volatile times but its relatively low entry point, with an ounce of silver costing about $20, makes it much cheaper and easier to obtain than gold. Plus the wide range of uses for silver, in some of the most attractive industrial sectors of our time, illustrates that the metal has attractions outside of the purely investment and collector crowd. Overall, a little exposure to silver at a time of burgeoning demand is surely worth the risk. But strap in and enjoy the often bumpy and volatile ride! Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwashing while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

17/06/2022

Most Valuable Silver Dollars in the Market Today

Silver dollars are the some of the most collectable and liquid in the coin market today, with sought after and rare examples selling for millions of dollars, including the most expensive coin ever sold. Not bad for a coin that, on the face of it, is worth just $1! What is a silver dollar? A silver dollar is a coin made by the United States Mint and was the first dollar minted in the US back in 1794. As the name suggests the dollar is made of silver, typically consisting of 90% silver and 10% copper, and is redeemable for $1. Although silver dollars date back over 300 years, the course of history has seldom run smooth. The Coinage Act of 1873 caused the first major disruption by ending the free coining of silver with production of the silver coins only resuming five years later following the Bland-Allison Act, which compelled the Treasury to buy a minimum amount of silver each month to be made into dollar coins. However, just a few years later the Sherman Silver Purchase Act of 1890 led to a surplus in the supply of dollar coins with volumes tailing off over the subsequent years until 1904 when production of the silver dollar was suspended. The end of World War I saw the passing of the Pittman Act and resulted in the first new silver dollar, known as the Peace Dollar, being minted in 1921. This coin enjoyed a short production run before war once again intervened with no coins struck by the Mint for about 30 years until the creation of the Eisenhower Dollar in the 1970s. Since that resumption, dollar coins continued to be minted in a variety of designs until 2011. Coins produced from 2012 are no longer for general circulation and are purely commemorative made specifically for collectors. The range of designs and the history behind each different coin is a key factor in why silver dollars are one of the most popular coins among collectors. Why is a silver dollar called the silver eagle? The silver eagle refers to the American Silver Eagle, which is the official investment-grade, silver bullion coin. The coin was approved by the 1985 Liberty Coin Act with the first American Eagles released in 1986. This 1-ounce coin is made of pure silver and has the Walking Liberty design on the obverse and the Bald Eagle, the national bird of the USA, on the reverse. Its weight, purity and content are backed by the US government helping make it the most widely traded silver coin in the world. Although the eagles minted before 2012 have a face value of $1, the standard coins trade for a small premium over the spot price value of the physical silver they are made of. As ever with collectable items, more unusual or proof versions of the coins can sell for considerably more. The most valuable silver dollars today The record price for a coin was achieved by a silver dollar with a 1794 “Flowing Hair” specimen that was potentially the first dollar ever to be struck by the US Mint in Philadelphia. The coin, which derives its name from the appearance of Lady Liberty on one side, sold at auction for over $10 million in 2013. Only 1,758 silver dollars were produced by the Mint in its opening run meaning that any coins from that year still around today are highly sought after by collectors. There are estimated to still be about 130 still in circulation that would attract a multi-million dollar price tag should they ever come to market. After the Flowing Hair dollars, the next most collectable silver dollars are the Morgan Dollars and the Peace Dollars. Morgan Dollars were minted from 1878 to 1904 and then again briefly in 1921. They were designed by George T. Morgan and are highly valued both for their comparative rarity and their beauty. The rare designs in mint condition can sell for between $100,000 to $550,00. The short-run of the Peace Dollar, which was minted from 1921 to 1935 with a brief return in 1965, ensures the coin is popular with collectors due to its relative scarcity. Not only did the Morgan Dollar enjoy a longer mint run, it was also produced in far greater numbers. However, although the supply was smaller, the fact it was produced more recently than the Morgan dollar means the older coin is more desired among collectors. Other coins to attract a high price include the 1885 Proof Trade Dollar of which there are only five known examples and which the US Mint has no record of ever producing it. Seated Liberty dollars from the late 1860s and 1870s are also sought after with an 1866 version missing the “In God We Trust” inscription selling for over $1 million. Such is the interest in silver dollars that they can easily be traded at bullion dealers and pawnbrokers. The dollars should be stored in air-tight containers or packets to reduce the risk of them being tarnished. With entry prices as low as $20, silver dollars offer an attractive entry point into coin collecting while the possibility to unearth a rare gem in mint condition keeps collectors dreaming of making a fortune. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwashing while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

09/06/2022

What is a Silver Certificate?

A silver certificate is a paper document certifying that the holder owns the amount of silver mentioned on the certificate. This gave the owner the flexibility to use the certificate as a form of payment, without having to carry around the physical silver underpinning it.  These certificates were legal tender and were used in a similar fashion to the paper money used today. Although these certificates were issued by countries including Cuba and the Netherlands, as well as by mints and bullion producers, the most widely known and traded form of silver certificates are those issued by the United States. These look similar to today’s $1 bills. History of Silver Certificates Silver certificates date back to the 19th century and came about following two key acts in US history. The first of those was the Coinage Act of 1873 which placed the US onto the gold standard, where the amount of money in circulation was backed by the equivalent amount of gold in the US Treasury.  This act caused an uproar among silver miners as up until that point they could present their metal at the Mint and have it struck into coins. However, by shifting to a gold standard, it brought to an end the era of bimetallism, in which both gold and silver were legal tender and could be minted in unlimited quantities, with the price of silver falling dramatically as a result. A “free silver” movement was created, with its supporters known as “silverites”, which argued for the retention of silver as part of the US’ monetary standard. The Bland-Allison Act of 1878 represented a victory for the silverites as the act required the US Treasury to purchase $2 million to $4 million of silver each month from mining companies to be converted into silver coins. Silver was once again monetized. A Medium of Exchange This change in monetary policy also brought about the creation of silver certificates. These certificates made for a much easier means of exchange than having to carry around large amounts of silver. Each certificate was backed by the equivalent amount of silver held by the US Treasury and carried the words “One dollar in silver is payable to the bearer on demand”. The first series of silver certificates ran from 1878 to 1923 and were much larger than today’s paper money. These were issued in denominations of $1, $2, $5, $10, $20, $50, $100 and $1,000. In 1928, the size of the certificates was reduced and they were only printed in denominations of $1, $5 and $10 until they were discontinued in 1964. For the next few years, the certificates were still redeemable for physical silver until the 24th of June 1968 when all redemption ceased. The certificates remain legal tender today worth the value stated on them, however, the collector value outweighs the stated value. In the Netherlands, a shortage of silver for minting saw the Dutch government introduce silver certificates in 1914 and these were used until 1938. In Cuba, silver certificates were issued from 1934 to 1949. Understanding Silver Certificates Silver certificates are the forerunners to paper fiat money used today. Rather than having to carry physical silver to make payments, each certificate was backed by the equivalent money held by the issuing government or mint. This one-for-one exchange mechanism was a cornerstone of monetary policy from its origins in the late 19th century until the US stopped producing the certificates in the 1960s. While paper money is still used today, fiat currencies are not backed by an underlying commodity with central banks free to control the amount of money in circulation. Silver certificates were redeemable for silver dollars and while they haven’t been issued for almost 60 years, they remain popular with collectors for their historical significance. The Value of Silver Certificates Today Rarity and condition are the two key factors in the value of silver certificates today. The US issued certificates for over 80 years with a large variety of designs throughout those print runs. Those dating back to the first issuances from the late 1870s and 1880s are rarer and typically are the most valuable as a result. The crisper the note, the more valuable it is too; those with no blemishes or folds, in perfect mint condition, are more likely to attract the highest value. Other elements that will boost appeal among collectors are lower serial numbers or an unusual design. For example, while the certificates typically carry the image of famous US men, Martha Washington is the only woman to appear on a US silver certificate, first featuring in 1886, adding to collector value. It is worth noting that the higher denomination certificates aren’t necessarily worth more than lower denomination ones with a rare $1 certificate potentially worth more than a relatively common $10 one. At the bottom end of the scale, the certificates are worth little more than the value printed on them while a rare certificate in mint condition can be worth a few thousand dollars and occasionally even millions. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Doug Turner
Doug Turner

19/05/2022

What is silver used for?

Silver is one of the most versatile of metals, combining the highest conductivity of heat and electricity of any element with exceptional aesthetic properties – its reflectivity and lustre make it ideal for jewellery and tableware – and outstanding antimicrobial properties. In addition, silver is an abundant element, relatively easy to extract from naturally-occurring ores; it is extremely malleable and ductile, meaning that it can be manipulated into different shapes, yet it is physically strong and has a high melting point. We can divide its common current uses into three parts: Industrial Industrial use takes up more than half of all global silver production every year, compared with just 10-15% of gold. Common industrial uses include soldering and brazing alloys, batteries, photovoltaic energy, RFID chips to track deliveries, dentistry, nuclear reactors, photography, glass coatings and LED chips. Silver is also used in the manufacture of semiconductors, smartphone touchscreens, plasma television screens, for water purification and materials preservation. In chemical processes, silver is crucial for catalysing ethylene oxide to make polyester, solvents, detergents and everyday products like antifreeze. Medical Silver biocides appear throughout the medical environment, acting against bacteria by stopping it from bonding with other chemicals while remaining harmless to animal cells. In combination with water, silver ions have a powerful antibacterial effect, so they’re found in hospital water systems, while a silver coating keeps surgeons’ operating tools safe. Silver’s antibacterial properties mean that nanoparticles are often woven into clothes, to prevent bacteria from feeding on sweat. Store of value Silver is a convenient and widely accepted store of value, traded on international markets as investment-grade silver bullion. While silver coins are no longer common currency, silver objects including tableware, jewellery, artworks and vintage coins retain strong value. Since it is a highly reflective material, silver is commonly used in mirrors and specialised glass that can react to light. Investment analysts study the potential demand for silver to determine its future value. Historical use of silver Evidence from Turkey and Greece shows that silver was first mined around 3000 BC after the Chaldean people devised a means of extracting the metal. By 600 BC the city of Athens thrived on silver from local mines in Laurium. While German mines dominated medieval Europe, Peruvian, Bolivian and Mexican mines thrived in South America. Initially used for jewellery, tableware and coinage, Ancient Phoenicians (in modern-day Lebanon and Israel) understood that silver-coated bottles kept their water fresh; in the 19th century, doctors used silver nitrate in antibacterial dressings and to cure ulcers. With the invention of photography in the mid-19th century, a huge new market for silver emerged. Its sensitivity to light made silver an ideal material for the art form, particularly silver bromide and silver nitrate. By the end of the 20th century, photography represented the most common destination for global silver production, employing a quarter of it. Yet as digital photography displaced analogue, this slipped to just 9 per cent by 2013. Instead, demand for silver for photovoltaic cells rose sharply in the early 21st century, with the sector using 19 million ounces each year by 2008. Although innovation has reduced the percentage of silver in photovoltaic cells, the rise of high-tech batteries, used in electric vehicles and consumer electronics, has kept demand high. As an investment, silver is a cyclical material: when equity markets perform poorly and economic conditions unstable, investors seek sanctuary in raw materials and precious metals, which act as a hedge against inflation. Materials overview Silver is found ‘uncombined’, in ores including argentite and chlorargyrite (also known as horn silver). More often, it occurs in combination with lead-zinc, copper, gold and copper-nickel ores, from which it is extracted as a by-product. Each year around 20,000 tonnes of silver is produced. Silver is the most commonly occurring of the noble metals (meaning that it resists corrosion and oxidisation) and makes up 0.07 parts per million of the earth’s crust, compared with 0.01 for gold. Silver’s material properties include its unsurpassed conductivity of heat and electricity, its malleability, its sensitivity to light, its antibacterial qualities and its high reflectivity. Future of silver Exponentially increasing demand for photovoltaic cells, electric vehicles and supercapacitors, using nano silver conductive inks, means that demand for silver is likely to rise in the coming years. Batteries using silver oxide or silver zinc alloys perform well at high temperatures, making them ideal for aerospace and defence applications. Renewed interest in nuclear energy, in response to security concerns over oil and gas, may also feed into higher demand, since silver is a key component in control rods in nuclear reactors. Investment analysts argue that silver is currently under-priced, and with global economies still under pressure following the Covid-19 pandemic and geopolitical friction, its value is likely to rise. Innovative fabrics and clothing are also likely to incorporate silver, thanks to its antibacterial properties and malleability. Silver’s price typically shadows that of gold, after a short delay. For example, gold rose sharply in early 2022 – up 18 per cent in the first three months – and silver is expected to follow. More on the future of silver in our Gold and Silver Outlook for 2022 Learn More This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Doug Turner
Doug Turner

24/03/2022

The Investors Guide to Gold and Silver in 2022

Gold has traditionally played a key role in the financial sector, becoming the most common safe haven in market storms. Its crucial role in a financial portfolio remains unchallenged and it seems very likely to continue for a long time. Gold represents stability, with central banks increasing their holding of bullion as reserves. Despite this, investors are always fighting against the markets while trying to find the best timing for buying bullion. Another interesting point of analysis is the distinction between buying physical gold or paper gold and what are the advantages of both. This article starts by explaining the current scenario for bullion, before analyzing the market drivers which are forecasted to move the gold price in 2022. The analysis continues to present the advantages offered by Kinesis Money to gold investors. What is the current state of the market? In the last few months, investors faced a challenging scenario. The Federal Reserve announced the beginning of tapering, while inflation continued to soar in the U.S. and in several other countries, proving to be much less transitory than forecasted by Central Banks. Moreover, the battle against Covid-19 is not yet over, with spikes of volatility due to the news related to the pandemic. Despite this, stocks continued their long rally that started in April 2020, with the market capitalization of almost all the major indices now surpassing pre-Covid-19 records. For example, the S&P 500 has reached the 4.700 points mark, around 900 more than the top of February 2020, while the Dax topped above 16,000, before slowing down after the growing fears related to the new Covid-9 variants. On the bonds market, the yield of the U.S. 10-year treasuries remains in the region of a modest 1.50 – 1.70%, well below the current level of inflation. But the scenario could change if inflation pressure continues to rise, or in the case that investors sense a risk that the price growth seriously goes out of control. Once again, gold seems ready to play a crucial role in the markets. Investing in Gold in 2022 There are not many certainties in the financial environment. However, it is certain that gold will continue to be a crucial asset for an investor’s portfolio, despite potential changes in the market. Why invest in Gold in 2022? The reasons for holding gold might be various and at times - complementary. Firstly, consider investing in gold in anticipation of its price rising. By holding your gold long-term, you can expect to achieve a capital gain as the price of bullion increases over time. 1. Gold is an appreciating store of value Charts speak for themselves, especially in a longer timeframe: Gold Chart from 1971-2021 - Gold climbs from $35 to $1,800 Over the past 50 years, gold achieved an average yearly performance of +10.6%, while in the last 20 years bullion price increased by 600%. The former historical top of 2011 at $1,920 was surpassed in the summer of 2020, when gold temporarily jumped above $2,000, before slowing down to $1,800/1,900. 2. Gold is a Safe Haven Another reason to incorporate gold into a portfolio is to protect yourself in the event of stock market turmoil. Historically, bullion has proved to be an excellent safe haven in the unfortunate scenario of share market collapse. An example of that was observed throughout the global stock market crash in February 2020, when gold managed to retain a positive performance (excluding the first chaotic weeks of March, where many traders were forced to close their position in gain on gold, in order to avoid margin calls on stocks and bonds). 3. Don’t put all Your Eggs in One Basket Holding gold is an excellent way of diversifying a portfolio, in line with the wise advice of Don Quixote. Gold is a unique commodity, with a low correlation to the majority of raw materials - and can also be used to mitigate potential risks. 4. Gold is a Hedge Against Inflation and Market Adversities Speaking of risk, bullion is well-suited to play an important role in the event of currency market turmoil. Central banks printed trillions of dollars, euros, pounds and yen in the last few years. As we try to crawl back to so-called normality, the Fed’s hawkish monetary policies might not necessarily make it any easier. If investors lose their trust in central banks, gold could definitely jump to new highs. Therefore, its safe-haven role is also remarkable when analyzing the forex market. For investors, based in countries where the local currency is extremely volatile - as in Russia, India, or Turkey for example - gold could also be used as a hedge against further depreciation of the native currency. Moreover, bullion could also be held as a hedge against inflation. However, this subject may turn out to be a little tricky, as the relationship between gold and inflation is not always linear. What are the main market drivers for gold in 2022? Any gold price forecasts for 2022 should take the inflation rate and the Fed’s monetary policy into consideration. Of course, the development of the pandemic should be carefully monitored. Now, let us analyze the main elements for gold investing in 2022, in more detail: 1. The Federal Reserve’s attempts at curbing Inflation Despite the Federal Reserve’s tapering announcement, gold managed to perform positively in October and November 2021. This happened mostly due to growing fears around uncontrolled inflation, which remains a central topic as we enter the new year. Indeed, in the event of investors losing their perception of central banks having enough control over price growth, a gold buying spree may ensue. Therefore, inflation and the central bank’s decisions over interest rates are two crucial market drivers for the gold sector. 2. Gold-backed ETFs In recent times, the demand for gold coming from physically-backed ETFs, has shown a strong correlation with the gold price. The growth in this sector could further boost the price of gold, in case the inflows continue. Price of Gold & ETF demand - From the World Gold Council (WGC) 3. Growing Demand for the Physical Gold In the last decade, we have seen strong demand for physical gold coming from central banks. Many countries, including Russia, China or Poland, vastly increased their gold reserves. It will be interesting to see whether this trend will continue in the next few years. Jewellery historically represents a strong percentage of physical gold demand. In this case, analysts are trying to forecast the solidity of jewellery sector demand for 2022-2025, and its potential impact on the bullion price. What are the key levels for the gold price in 2022? If we take a look at the 2019-2021 gold price chart, we can identify many interesting support and resistance points that can later aid us in monitoring the year 2022. Gold Price - from 2019-2021 Let us start with analyzing the key resistances - the areas which can curb gold appreciation, and where we could expect sellers to be more active. In the current scenario, with bullion traded at around $1,800, the first major level to monitor is placed at $1,870, on the top reached in November 2021. A surpass of this threshold could generate a further rally to the historical 2011 top in the region of $1,920, while the following key levels to monitor would be the psychological $2,000 mark which led to the historical high in July 2020, at $2,074. Similarly, in case of a new decline, the support zones - where we could expect significant buying volumes - are placed at $1,750 and also in the $1,670-$1,680 region. Much further, we can find $1,620 and the $1,520 - $1,500 area. How to Invest in Gold in 2022? As many investors are looking for the perfect way to invest in gold, it’s important to make an informed choice between options available on the market. What are the differences between physical gold and paper gold and are there any emerging alternatives to these two choices? Paper and Physical Gold - What are the Key Differences? Physical gold has the advantage of tangibility, however paper gold is usually much cheaper in terms of spreads and commissions. Moreover, it is also easier and quicker to buy and sell. Thanks to modern trading platforms, it is possible to purchase and sell paper gold in just a few seconds, profiting from both short and long-term bullion movements. Fully Allocated, Digitalised Physical Gold Conclusively from this analysis, precious metals-backed digital currencies - such as Kinesis KAU & KAG - could represent the perfect solution for modern investors. Kinesis native currencies merge both the enduring value and security of traditional physical gold with the technology-driven liquidity and ease of paper gold. Kinesis offers two tokens: Kinesis gold (KAU) and silver (KAG), which can be easily traded online. At the same time, the precious metals that back them are stored physically in Kinesis vaults and can be redeemed in physical bullion anytime, anywhere around the world. Moreover, Kinesis is paying KAU and KAG holders a recurring monthly, passive yield, which is paid directly into the holder's account in gold and silver. The Kinesis system also offers a sense of immediacy. Holders who store their gold with Kinesis, have the ability to spend, send and transfer their KAU and KAG as digitalised, physical currencies, just like regular cash. To summarise, with Kinesis Money assets, investors can access the benefit of receiving a monthly yield, traditionally associated with bonds, coupled with the potential growth of the physical gold price. Moreover, they can trade Kinesis gold just like paper gold, while also having the option of converting the Kinesis token into physical gold, whenever they wish to do so. https://www.youtube.com/watch?v=Q2ldZFJjii4 Investing in Silver in 2022 It’s not just gold that glitters. In the precious metals environment, silver could also represent an interesting opportunity to diversify an investor’s portfolio. Silver metal is generally more volatile than gold, with wider movements in both directions. In other words, during the positive growth phases, silver can gain more value than gold (in percentage), while falls can also be broader. Many precious metal analysts, including the renowned Robert Kiyosaki, have a positive view of silver. Although its price seems to have been dramatically compressed in the last few years, with the rapid popularisation of physical silver - which is also reflected by the accelerating expansion of silver-focused online communities, such as Reddit-based WallStreetSilver - this could be the right time for the metal to start restoring its real market value. Silver price - from 2019 - 2021 The global physical demand for this precious metal is expected to grow in the future. In the last decade, we have already seen a tremendous increase in the industrial silver demand from the photovoltaic sector. In the upcoming years, analysts have forecasted a huge increase in the request for silver as a component in electric vehicles. Of course, this could have a strong impact on the silver price, increasing the chances that silver can outperform gold in the long run. Gold Vs. Silver Demand It is interesting to analyse the different uses of these two precious metals. Gold is mostly used in jewellery and has a significant component of the demand from central banks and the investment sector.  Silver, on the other hand, is more exposed to the industrial demand and this could also represent an interesting point allowing investors to diversify their investment in silver. Both precious metals are equipped with a number of benefits that will make an excellent addition to any investor’s portfolio. However, the decision between gold or silver, as well as the form in which you find them most fitting your personal needs - is entirely up to you. * This article will be updated in line with market trends and advice throughout the year.

Carlo Alberto De Casa
Carlo Alberto De Casa

21/12/2021

Is Silver a Good Investment?

As a precious and industrial metal, silver has long been a safe alternative to traditional stocks and bonds trading. The last two years have been a tumultuous time for investors, so it’s no surprise that some may be looking into safer, “old-fashioned” investments. While silver can be volatile, precious metals are seen as safe-haven investments in uncertain times and can be a hedge against uncertainty, inflation, and stocks. Why invest in silver? Silver is a small market, and not as well-known as gold, but it’s still physical, reliable money with growing demand. It’s classified as a commodity: a publicly-traded, tangible asset. Silver is real money Along with gold, silver is the ultimate form of money. Silver has no counterparty risk, has never been defaulted on, and has been used as a form of currency for over 4,000 years. As a physical asset, silver counteracts the turmoil of today’s digital trading and cyber currencies; it also cannot be hacked or vulnerable to cybercrime. When you hold silver, you hold a real, hard asset that is universally recognised as valuable. Silver is reliable As a physical coin or bullion, silver holds intrinsic, long-term value, so it can stand as an inflation hedge. Silver is impacted by different factors than the stock market, so it can help diversify your portfolio and counterbalance riskier investments. Also, silver is an industrial metal used in the manufacturing of lots of things, making its price performance and outlook relatively steady. Silver demand is growing Silver’s metallic properties put it at the forefront of both common manufacturing and innovative technological advances, such as electronics, medical equipment, and clean energy alternatives. As these fields expand, so does the demand for silver. In the last few years, global demand for silver has been surging. Combined with silver’s limited supply, this increasing demand suggests a positive impact on those who have silver in their portfolios. Silver vs. Gold investing Of course, silver seems less valuable an investment than gold at first glance. They’re both precious metals and tangible assets, but they have significant differences that can make silver a better investment. Silver is cheaper Silver literally costs less to buy than gold. The spot price of silver in the market has never exceeded that of gold -- by a lot. It’s not just cheap to buy, but can be more manageable to sell. While gold is sold by the ounce, silver can be broken down into smaller amounts, so you only have to sell what you need. Silver is more volatile The market for silver is so small that any cash movement can have a large impact on price. Its value is also influenced more by manufacturing cycles. This means that the silver market is more volatile, which means it falls more than gold in bear markets, but rises much higher and faster in bull markets. At the peak of the 2011 bull market, the gold/silver ratio sank to almost 30, demonstrating how silver outperforms gold. Risks of investing in silver As with all investments, there are some risks to consider when investing in silver. The main risk is something that can also be a benefit to investing in silver: its volatility. Especially in short time periods, silver’s spot price can shift up and down dramatically, so it can be easy to overpay or not get the full value of a sale. Sensitivity to shifts Since the value of silver is so tightly tied to industrial growth and the manufacturing industry, it can be hurt by an economic slowdown. A replacement metal in manufacturing, or a dramatic change in the industry, could also lead to a decrease in silver’s price. Limited potential Since silver is a physical commodity, it traditionally doesn’t offer interest or dividends like bonds and stocks, and cannot be built up like cyber currencies. Silver has limited income and can only appreciate so much, so your best chance to benefit is to sell during a price rise. Unpredictability Silver’s value derives from multiple categories, so its price can be torn between industrial and investment valuations. If investors bid the price one way, the industrial world will react accordingly, changing the global supply of silver and thus its price. How to invest in silver There are two main ways to buy and sell silver: directly buying it yourself, or indirectly buying silver-related securities. Physical coins or bullions You can buy physical silver bullion coins or bars; this way is relatively straightforward as you can buy from pawn shops or online vendors. It may cause some storage issues, however, but you’ll be in control of buying and selling the silver directly. Silver-related financial instruments Using these, you can buy and sell silver indirectly. For many, this is a more pragmatic approach. Silver stocks: You can buy shares of companies that mine or process silver (“miners”) or resell it (“streaming companies”). It’s important to note that there are few “pure players” here, since most companies mine silver together with other metals.Mutual funds or ETFs: You can invest in funds that hold silver in their portfolios, either in its physical form or in silver companies.Exchange-traded commodities (ETCs): You can invest in publicly traded securities that are much like the funds. ETCs also invest in physical silver, but the difference is that they are debt instruments, like bonds. The underlying commodity, silver, serves as collateral.Kinesis Silver: You can instantly purchase physical silver with Kinesis. Kinesis silver (KAG) is a yield-bearing digital representation of investment-grade silver bars that sit in Kinesis vaults, in your name. Silver is underestimated as an “old-fashioned” investment, despite its historic value as money and essential industrial material. While it can be volatile, it’s viewed as a safe, tangible alternative investment or as a way to hedge against riskier investments. Commodities can be invested in directly, by buying the physical substance and holding or selling it, or indirectly by investing in funds that include it. If you have some investment experience and are willing to take some risk, investing in silver may be a good choice for you. Want to learn more about digital silver today? Click here

Doug Turner
Doug Turner

17/12/2021