Gold is not the only precious metal available for investment and purchase. Many people invest in silver instead of, or in addition to, buying gold coins or other forms of gold. The price of silver fluctuates in much the same way that gold does because both are considered a hedge against inflation. When the economy is poor, the value of both gold and silver skyrockets.
A brief study of the history of silver prices reveals that its price has generally risen over the past 50 years. The Silver Purchase Act of 1934 was effective until 1961 in the United States. During this time, the U.S. Treasury acquired silver in quantities of more than three billion ounces, a majority of this from domestic mines. The market price of silver from 1934 to 1939 was generally lower than $0.75 per ounce. By 1950, the Treasury was selling silver at $0.91 per ounce.
After 1955, the Treasury continued to keep a hold on the silver market, selling a huge supply in order to hold the price of silver below its monetary value of $1.29 established in the Silver Purchase Act. By 1963, the price of silver rose to $1.29 per ounce and continued to increase through 1968 when it reached $2.57 per ounce. The price then fell to about $1.88 due to decreased investor demand.
As demand increased throughout the late 1970s, silver’s price rose as high as $25.00 per ounce. During the 1980s, a recession caused the price to drop sharply to around $4.85 per ounce. The 1990s saw a lot more fluctuation and silver ended the decade at about $5.33 per ounce. The new millennium has seen a sharp increase in the price of silver, due to the turbulent economy. The precious metal is now trading at $19.32 per ounce.
Buying silver will entail a familiar process for those who invest in gold, because the investment options are very similar. Silver coins and silver jewelry are two of the easiest ways to invest in the precious metal. These items may be purchased online or from a reputable dealer the investor may have already used to buy gold coins. Consumers may also purchase silver exchange traded funds or invest in silver mining stocks.
Tags: history of silver prices, Investing in Silver, silver investing