Are silver coins a good investment?

When it comes to precious metals, silver has always been seen as something of a poor relation. An Olympic silver medal is a huge achievement, but every recipient knows that it is also a sign that they came second best. And while the “family silver” is something that many households might treasure, gold cutlery is the sort of thing reserved for royalty and the super-rich.

Perhaps it is due to these cultural connotations that silver is typically paid less attention in the investment world, too. However, that is clearly a case of flawed logic. When looking to make money from an investment, what matters is how its value changes over time. Comparing its absolute value with that of another commodity is as senseless as saying you shouldn’t invest in an apartment because it is worth less than a castle.

Why silver coins

Physical silver is typically traded in two forms, either as coins or bars. The form the silver takes does not make any difference to its inherent value, but there are some advantages to coins over bars. Many people choose to invest in American Silver Eagle coins as they offer greater flexibility than bullion.

The problem with silver bars is that they are far more complex to buy and sell – and obviously there is the “all or nothing” nature of them. While smaller bars are available, the traditionally traded 70lb bars change hands for around $17,000 each. Silver coins, on the other hand, can be purchased far more easily and for as little as $20 each.

All coins are not the same

Government minted coins are universally accepted, and can usually be traded without the need for assay testing. However, the fact that silver has been traded in the form of coins for so long, means there is a vast choice of coins out there.

Some old silver coins have scarcity value on top of the inherent value of the precious metal. So for these, their value is based on more than just the weight and purity. There are some, known as numismatics, who specialize in trading the most expensive coins in the world. However, unless you really know what you are doing, it is safer to stick with uncirculated recently minted coins, where the value is unambiguous.

But are they a good investment?

This brings us full circle to the first question, and now we understand a little more about silver coins in their own right, it is safer to do what we initially warned against, and that is to compare silver investment with gold investment. This is not by way of absolute values, but in terms of relative performance.

The gold/silver ratio is used to calculate absolute and relative prices of both gold and silver. To make sense of it, you need to understand that the ratio is set to a standard normalized value of 16:1. This is based on historical statistics.

The ratio currently stands around 50:1, but as mining stocks dwindle and the ratio starts to return towards its normal levels, silver will become one of the most prized commodities. If gold prices stay as they are now, then as the ratio normalizes, the price of silver will approximately double.

Could Agriculture be Your Next Business Venture?

The world population is expanding and the demand for food is rising with it. This means that, for agricultural businesses, there is a huge demand for more food production as well as better management. In other words, there has never been a better time to get into agriculture.

However, if you are going to go ahead and get into this industry, you will need to understand that it is no longer the idyllic day in the sun that lots of pictures portray it as. Instead, you will need to have a firm grasp of your business plan and the technology that will get you the most profits.

Using Modern Methods to Increase Production

Though farming is one of the oldest industries there is, the methods for increasing crop production have changed radically in recent years. From the development of agricultural tunnels to spraying crops with pesticides, science, technology and nature have been combined to create the most prosperous conditions possible on every bit of land.

Although many farmers use these more modern methods, there is still plenty of money to be made using more traditional methods as many people turn to organic foods to protest the decline of bees and other pollinators. MKC are specialists in agronomy, an evidence-based approach to increasing crop yields that draws on all kinds of different sciences. You can contact us to find out more.

Following Food Fashions

Though you might assume that all farmers specialize in just one crop, the truth is that crop rotation is very important for maintaining and replacing the nutrients in the soil. This means that rather than just one crop at a time, most agricultural businesses will have multiple different crops at once.

This also means that you can follow food fashions and start producing more popular foods as soon as you can to boost your profits and make yourselves better known. Staying at the forefront of food production like this is tough because it means that you need to be able to predict trends but, if you have contacts in the food fashion world (yes, really!) then you should be able to stay ahead of the game. Vegetables are going to be big in 2018.

Escape the Office

The final and best reason for considering a shift to agriculture is that you will finally get to escape the office in favor of doing something that is fundamentally valuable to society. While every man and his dog is setting up a website selling SEO services or working out which business premises are the best for showing that they are dynamic and yet well established, you can be out in the fields looking after your crops.

It may be a romantic view, and there will certainly be days when you are office-bound and trying to crunch the numbers, but on balance, if you would rather be ensuring that the population is well fed than feeding greedy businessmen new branding ideas, there’s a clear path for you. And it leads directly to the agricultural sector.

The Benefits Of Fixed Rate Saving With Term Deposits

When considering whether to start saving using term deposits, the interest you get is an important feature to factor into the decision-making process. It not only adds to the principal amount you will have saved but helps to cancel the effect of inflation on your account.

If you are going to save a lump-sum or save for a prolonged period, you need to ensure you’re aware of the benefits of fixed rate saving through the use of term deposits.

Continue reading below to learn more about what to expect when choosing a fixed rate.

It’s A Low-Risk Investment

There are times that you need to invest your money because you do not need to use it now. In such cases, you may not be keen on earning a huge interest with a risk of losing most or all of your investment. If that is your current circumstance but you still need to earn a reasonable amount of interest, then invest in a savings account that will give you fixed interest.

The fixed interest will mean that you get a guaranteed return on your savings, but still not have to worry about not being able to access your lump sum or savings. Other investments such as stocks may have a higher return but the risk is much greater. In fact, you may lose everything in the next minute after your investment has been affected.

Your Funds Are Secure

If you need a secure place to invest your money, a savings account that offers you a fixed rate is one of the best places to start. The bank simply guarantees that you will get your money back, plus some interest that will not be altered because if there’s a change in inflation rates.

That makes it ideal for saving for college or a down payment for a new home. You may also use that strategy to save for a new business since you are assured that your savings plan will not be impacted upon.

No Maintenance Fees

Account maintenance fees are some of the ways that you lose your earning in the banking system. You do not need to part with these fees if you are focused on making deposits for a prolonged period. However, you will be penalised if you try to make an early withdrawal from your account. The penalty comes in form of a reduced interest and you have to give 31 days notice to your bank.

No Account Setup Fees

Most regular bank accounts will charge you some form of setup fee to cater for the time their staff will spend managing your account. When you have a fixed amount of money you wish to save the last thing you need is to lose some of it through account fees. Thankfully, you can avoid them by opening a fixed rate interest account that you can only access after the maturity period.

Fixed Terms

Some of the challenges you may encounter when trying to invest your money are the terms of the investment. The small print will usually give your investment partner some leeway to change terms at their discretion. For you, that means losing profits that you had already factored into your financial plans.

A fixed rate savings account will not give you any of those problems. You will get the exact returns that were agreed upon when you made your deposit. If you do not want to deal with surprises after you have made your commitment to saving money, go for a fixed rate.

You Simply Get Peace Of Mind

When you choose a fixed rate savings plan, you get what you agreed upon when the maturity term expires. Moreover, after your term deposit has rolled over, you will have seven days during which there is no penalty for ending the saving agreement. With all these advantages, you have every reason to go for a fixed rate account and set your savings plan in motion today.