Silver has been around since Ancient Egyptian times and is still widely used today. Silver shows up in many aspects of life, including construction, technology, investment markets, and of course, jewelry and coins.
Chances are you come into contact with silver almost every day, but do you really know how much it’s worth? Today we will explore how much silver costs in Canada, what the prices depend on, and how to buy silver in Canada.
The Average Price of Silver in Canada
The price of silver in Canada fluctuates, but the average cost of one ounce of silver is currently between $31-$37 CAD. Per gram, the average price of silver in Canada is between $1-$1.10 CAD. For comparison, you could get ~2.97 ounces or ~100 grams of silver for $100 CAD, which is approximately the weight of a deck of cards.
When silver was initially discovered in Ancient Egypt, it was thought to be more rare than gold, so silver’s price was deemed higher than gold at first. Eventually, since silver is actually common, it became standard coinage, which made silver an essential player in commerce, trade, and investment markets worldwide.
What does the price of Silver in Canada depend on?
There are a few different factors that determine the price of silver in Canada. Some of the main ones include supply vs. demand, melt value, investor spending, market speculation, and global instability. For example, suppose people become dissatisfied with the government and financial institutions. In that case, they might decide to sell or not invest in the silver market at all, driving prices down. Conversely, if there is a higher demand for silver, the prices will increase to reflect the need.
This volatility in the silver market is not appealing to some investors, while others try to use market trends to their advantage to make a profit. For example, if investors forecast that the price of silver will fall, people might try to sell their shares, making the silver prices fall even further. If this happens, then investors might try to grab shares when they’re low in the hopes that they’ll return higher.
Another thing to consider if you are trying to sell silver is the melt value of a given piece. This essentially refers to the authenticity or the pureness of the silver you have, and you can find this out by consulting a professional.
How can you buy Silver in Canada?
There are few ways you can buy silver in Canada; you can invest in physical silver, silver on the stock market, or silver via CFDs. Some people like to invest in silver bars or coins so they are provided with a real asset and avoid the risks involved with buying stocks. A lesser facet of the industry is jewelry which only makes up about 1/5th of the total silver industry.
If you are not looking to buy silver physically, investing in the silver stock market might be the right choice. As an investor, you would buy shares in a business in the silver industry and then benefit from the fluctuations of the industry. The idea is to buy low and sell high.
For example, you could invest stocks in a silver mining company, and then you would profit from the performance of the silver mining company rather than silver as a commodity. Otherwise, you could buy units in a silver-themed Exchange Trading Fund (EFT) and sell them when they go up in price.
As mentioned above, a facet of the silver stock market involves speculating on market trends and agreeing to buy or sell at certain amounts on specific dates. This investment process is called silver Futures contracts and is typically utilized by silver miners or market speculators looking to make a profit.
Similarly, you can invest in silver via CFDs which stands for Contract for Difference. When using a CFD, you are also investing in the future markets and price movements to earn profits, but you aren’t guaranteeing to buy or sell on a specific day and time. This last option for investing in silver is riskier and should be left for the more advanced and experienced investors.
Although the silver market fluctuates, one of the best things about silver is that it is commonly found in everyday life and has held its value throughout time.
When looking into any of these opportunities, make sure to weigh all your options thoroughly to figure out what is right for you. If you are not sure which silver investment option is best, do some online research or book an appointment with a qualified advisor.