A Look Inside the Silver Mining Process and Why You Should Invest

Are you looking for a great investment asset?

You want to find something that works as a hedge against inflation. You also want something that you can sell for a great profit.

You should consider looking into silver and silver mining. Silver mining is the process that creates silver to be used in products. These products include silver jewelry and silver bullion.

While not as popular as gold, silver is a great precious metal that has stood the test of time. Any smart investor should consider investing in silver.

Here’s what you should know about silver mining:

The Silver Mining Process

Machines get used for picking up the ore from a silver mine. These ores are usually in nugget form.

They’re then taken to a third-party service that creates a product from the silver ore. This will be creating silver jewelry or silver bullion. The latter is in the form of coins, rounds, or bars.

Silver usually gets mined alongside other materials. These include lead, copper, zinc, cerargyrite, and pyrargyrite. Silver gets separated from its ore to create a product. This process is known as smelting.

The most popular countries for silver mining include Mexico, Peru, Norway, Canada, and the United States. Silver still gets mined as it’s a metal that’s high in demand.

Why Silver?

So why is silver still so high in demand from investors?

The first reason is that it’s a great alternative to gold. Many beginner investors can’t afford to invest in expensive gold bullion. As such, silver bullion is a great alternative.

One can buy silver coins to hold as an alternative form of currency. You can also use silver bullion as an asset to sell for your preferred currency.

Silver is also a metal that has many industrial uses. One can use silver to create a battery for a smartphone or a medical device. As such, if you own lots of silver you might find buyers willing to pay top dollar for your bullion!

Why You Should Worry About Inflation

The first reason to invest in silver is to hold it as an alternative form of currency. This brings us back to silver as a hedge against inflation which we mentioned in the introduction.

We all live under a system of fiat currency. This is a currency issued by the central bank of a country. The legality of the currency is backed solely by the government.

With fiat currency, there’s always the danger of a high level of inflation. A country’s central bank can increase the fiat money supply at will. For example, in 2020 the U.S. Federal Reserve created 1/5th of all dollar bills printed in the history of the country!

This means that the value of the U.S. Dollar has decreased significantly. But the U.S. Dollar is hardly the worst offender. Venezuela and Zimbabwe are two countries where one can be a billionaire and still be poor!

Silver as a Currency 

So where does silver come into this? Silver and Gold have been used as currency throughout history. Before fiat currency was created, all currencies were backed by the value of a country’s gold reserves.

In fact, in the United States, all coins (except pennies) minted before 1965 contained 90% silver. These types of coins are known as Constitutional Silver and have become popular among collectors and investors alike.

As such, gold bullion was used to purchase goods and services. For those who can’t afford gold, silver bullion is a great alternative. If you’re worried about inflation in your country, you should consider owning silver bullion as a currency.

There might come a time when your fiat currency won’t be able to buy your daily needs. But your silver coins, rounds, or bars might be able to get you out of a rut!

If you do consider owning silver as currency, it’s always best to seek professional financial advice. As a general rule, you might wish to own 10% of your net worth in precious metals. Alternatively, you might want to own your weight, in pounds, in silver bullion.

Silver as an Asset 

The other reason to own silver is to use it as an asset to sell for fiat currency or other valuable assets.

If you own silver jewelry or silver bullion you might find many investors or collectors willing to pay an abundant amount for your silver assets! Silver bullion, as mentioned previously, is great for industries that depend on this precious metal.

As a result, you might wish to own silver to sell as an asset. For example, you might want to own several silver bars to sell to medical companies.

They can use silver to create medical equipment. You can also sell silver coins or rounds to tech companies. These tech companies will use silver to power their products.

You can also sell silver jewelry to jewelry shops or collectors. If you have bullion dealers in your area, you can also sell your silver bullion to them.

You might wish to own silver both as a currency and as an asset. You can hold some silver to use solely as a currency. You can also pass this silver bullion to your heirs.

You can use another portion of your silver to sell if you’re having cash flow troubles. Or you can become a full-time seller of silver products.

If you go down this route, you might even wish to invest in silver mining. You can own stocks of a silver mine to earn a share of its profits.

Consider Silver

Now that you know how silver mining works, you can consider investing in silver.

This is a great precious metal that has stood the test of time. It’s still mined in various countries around the world. There’s a lot of demand in mining silver to create silver jewelry or silver bullion.

Seek professional advice to determine how much of your net worth should be in silver. Make sure you research whether you wish to own silver bullion as a currency or as an asset or both!

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