Silver Bullion - Why is it advisable not to go
outside major stock exchanges when investing in silver shares?
Do you have access to sufficient funds and capital to start
your own silver mining company? If not, then it’s
best to invest in silver mining companies that are listed on major stock exchanges. It is the
safest route the average silver investor who wishes to invest in silver shares can take. If not possible, then
secondary or less known stock exchanges can be considered, but needless to say, unlisted silver shares must be
avoided like the plague itself. Unlisted silver shares refer to the shares of silver mining companies that are not
approved by a formal stock exchange; such silver mining companies are not listed or
unlisted.
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Physical Silver vs. Paper
Silver
Unlisted silver
shares...
Yes, returns on unlisted silver shares can some times be high, but it is not
worth the risk when the silver investor considers that the risks are simply
too high, especially to the average silver investor who cannot afford to lose money. This is the very reason why
we are not even going to suggest that the average silver investor invest in or own unlisted silver shares, nor
will we make such a recommendation and attach a warning of extreme caution to it. No, we will once again and
outright recommend that silver investors avoid unlisted silver shares altogether and try to stick to major stock exchanges as far as
possible. Here are the reasons why we are of the opinion that the risks attached to unlisted silver shares are
simply unacceptible:
Liquidity: Unlisted silver shares do not
offer liquidity, in the sense that there is not enough share trading activity like at the major stock exchanges,
which means that the silver investor must never expect to get the best price, whether he/she is buying or selling
unlisted silver shares.
Little or no protection: Unlisted silver
shares offer the silver investor little if any protection when an unlisted silver mining company is black listed or
goes bankrupt. The silver investor enjoys much more protection when a silver mining company is listed and backed
by stock exchange authority.
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metals today! Contact us for
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Physical Silver vs. Paper
Silver
Assessment of unlisted silver shares: The
assessment of unlisted silver shares are difficult at best, because access
to extensive information pertaining to silver share prices and its volatility are not
possible like the case is with stock exchanges, especially major stock
exchanges.
No stock brokers: Stock exchanges do not
allow their members to deal or trade with unlisted shareholders. This makes it impossible for the silver investor
who invest in or own unlisted silver shares to hire a stock broker.
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