Understanding Silver Prices
Silver has long been a precious metal that holds great value as currency. It remains one of the most stable precious metals in which you can put your money and shows promise of increasing in, if not at least maintaining, its value.
When you are keen to add silver to your portfolio, you can benefit from understanding how it has been priced. You can also act decisively as an investor by keeping track of how silver is appraised and what kind of prices it can sell for today.
The Earliest Use and Prices for Silver
Civilizations like the early Turks, Greeks and Romans used silver as a form of currency as far back as 3000 BCE. In fact, the Roman Empire had its own sophisticated currency system. This system included the use of silver, as well as other precious metals like gold and bronze.
In the Roman Empire, coins made out of silver were called Denarii. A single silver coin was called a Denarius.
The value of a single Denarius was equivalent to one day’s wages in the Roman Empire. It was about the size of a dime and one of the most common coins used throughout the Empire.
In contrast, a single gold coin, called an Aereus, was equivalent to 25 silver Denarii. Likewise, two Denarii were equivalent to a single Antoninianus, or a coin that was made out of bronze. The Denarius coin remained one of the most important coins in the Roman Empire until the third century AD.
The Earliest Prices for Silver in the U.S.
Silver as a form of currency in the United States dates back to 1789, shortly after the implementation of the Constitution. In 1792, the American government gained permission to mint silver coins for use as currency. These early silver coins included the:
<ul>
<li>Dollar</li>
<li>Half dollar</li>
<li>Quarter dollar</li>
<li>Dime</li>
<li>Half dime</li>
</ul>
They also had design names like the Flowing Hair, Capped Bust and Draped Bust. Out of all of them, the Draped Bust remains one of the most highly prized among coin collectors today.
Silver remained one of the base precious metals used in American currency all the way through 1965. That year, the government passed the Coinage Act of 1965, which brought to a halt the use of silver in the making of American money.
Even more, it reduced the amount of silver used in specialty minted coins. For example, the Kennedy half dollar, which was minted from 1965 to 1970, only contained 40 percent silver in it, rather than the customary 90 percent used in silver coins minted prior to 1965.
The Value of Silver through the Decades
As a commodity, silver has performed relatively well in the precious metals market over the last 100 years. In 1915, it was priced at just over $15 a troy ounce. By 1917, the price for it had climbed to over $21 an ounce.
Of course, the Great Depression saw prices for silver take a plunge. The lowest it got to was $5.60 an ounce in January of 1931.
However, the price for silver rebounded by May 1934 when it was valued at more than $14 an ounce. Prices for silver held steady between the $10 and $20 mark throughout the remainder of the 1930s through the 1980s.
By January 1981, the price of silver per ounce hit an all-time high, reaching above $140. By November that same year, the price per ounce for silver fell to around $70. By Summer 1983, prices once again fell to between the $20 to $30 range.
The Current Value of Silver
The current value of silver per troy ounce does not differ much from the average prices over the last few decades. It trades for around $24 an ounce. Commodities experts predict silver to continue to hold close to or at that price for the next few months, although some precious metals insiders say the bullish market could see the price of silver per ounce raise to over $50 soon.
In fact, they also argue that ongoing inflation could cause the price of silver per troy ounce to increase dramatically in the first few months of the new year. The average price for silver for the year 2023 stands at $23.28 an ounce.
The lowest price it has been traded at in 2023 was just over $20 an ounce. The year high saw the price of silver per troy ounce reach as high as $26. Silver performed better overall in 2023 as compared to 2022, when the average price stood at $21.76 an ounce.
Factors that Impact the Price of Silver Today
A number of factors can cause the price of silver to rise or sink. Perhaps the foremost factor that influences prices of silver is the supply and demand for it. When demand is high among investors, prices for silver typically rise significantly.
Further, the amount of silver being produced can also impact its price per troy ounce. If smaller amounts of silver are produced, the prices for this precious metal can increase dramatically. In contrast, where there is a surplus of silver in the commodities market, the prices for it can lower noticeably.
Even more, factors like inflation and interest rates play a hand in how much value your silver has from day-to-day and month-to-month. While inflation and interest rates often do not sink the prices for silver as much as they do paper assets like stocks and bonds, they can still cause this precious metal to lose value in the market.
Is Silver Worth Investing in Right Now?
As you contemplate the value of silver and how it has historically been priced throughout the last 100 years, you might question if it is really worth investing your money into right now. Will it perform well for you, and can you trust it to back up your portfolio’s overall worth?
There are actually a number of good reasons to add silver to your investment portfolio. Some of the benefits that it offers investors today include:
<ul>
<li>Having a lower price per troy ounce than gold</li>
<li>Overall solid performance even during times of high inflation or interest rates</li>
<li>Being a solid hedge against inflation</li>
<li>Readily available in the commodities market</li>
<li>Easy in which to invest</li>
<li>Available in forms like bullion, coins and bars</li>
</ul>
Further, silver has numerous industrial uses, ensuring there is nearly always a demand for it. This demand can mean higher returns for you if or when you want to sell your silver. Even more, silver offers you a tangible and visually appealing asset to add to your portfolio.
How to Keep Track of Your Silver Investment’s Value
Once you invest in silver, you want to keep track of how it is performing. However, if you are somewhat inexperienced with investing or have never purchased or kept track of the value of a precious metal like silver, you may need some tips about where to begin.
One of the easiest ways to keep informed about how your silver is doing is to download and use an investment app on your mobile device. The app you download and use can give you real-time information about what your silver is priced at, if it has gone up or down in value today and how it has performed overall in the last month.
You can also check the website of the precious metals supplier from which you purchased your silver. You can learn if silver is holding or increasing its value. You can also check news websites that have stock market tickers that can tell you the price of silver today.
Why Monitor the Price of Your Silver?
As an investor, it makes sense to keep informed about how your silver performs on a daily or monthly basis. You want to know if you are actually making money and safeguarding the worth of your portfolio when you add silver to it.
When you keep track of silver’s value, you can also decide if and when to sell it. For example, if you are concerned about high inflation or interest rates, you may decide to sell some or all of your silver to minimize your losses.
Alternatively, when prices appear to be on the climb, you may decide to invest in more silver before prices get too high. You can increase your overall wealth and provide the financial security you want for your portfolio when you keep track of silver’s value and determine if and when to act as an investor based on that information.
Silver continues to enjoy a reputation for being one of the most valuable and stable precious metals for investors today. Since its first use as currency as far back as the Roman Empire, it has offered solid value.
When you want to add silver to your portfolio to bolster your retirement savings’ value, you can purchase silver in forms like bullion, bars and coins. You can find out more about adding silver to your investment portfolio by reaching out to Sedona Bullion today.
