Silver is one of the two most sought after precious metals, with 10,000 uses and 2014 looking like a good year to position oneself in this market, the question what is the best way to investing in silver hangs in the air. One can own silver or gold in bullion form, ETFs, shares and even Silver or Gold IRA as a retirement option. With all these options, one can get mixed up on how to go about it. The truth is, there is no single answer to this question. However, let’s go through each one and see their strongest points.
Should I Consider Investing In Silver or Gold Bullion?
Investing in silver coins, rounds, or bullion is good because of its physically in your possession, it’s liquidity and security. When you have physical silver, the proof of having it is just a matter showing it. You also get the surety that you own it unlike other methods where you only have a paper document declaring that you own a share of silver. When it comes to selling also, all you have to do is find a trader and get your silver’s worth in hard cash.
More importantly, having silver in physical form is ideal if you’re looking to have something acting as a hedge to the FIAT paper currency. This way, if worst comes to worst; you have something to fall back on.
What About Investing In Silver or Gold Exchange-Traded Funds (ETFs)?
The best thing about ETFs is that you don’t have to worry about the physical handling of your bullion. You don’t have to worry about whether it’s safe or how to move it about if you keep it at home. With ETFs, the silver trust worries about the handling while you just keep track of your shares. The ownership is quite liquid and you can sell whenever you want.
The downside of investing in silver EFT’s are many investors are placing bets (aka hedging) on buying and selling silver looking for a quick return on a quantity of silver at the EFT companies that simply does not exist, nor is held in great quantity to warrant such huge transactions.
Is Investing In Silver or Gold Mining Stock A Good Option?
Mining stock can be tricky but it can also bring about huge returns, without even having to deal with silver at all. When investing in silver mining stocks, with established companies you enjoy the stability and the dividends. If on the other hand you invest on new companies you can either wait for long or strike it big if the mining hits the jackpot. Here you need to gather information and make calculated moves. The stakes are high but so can the returns. Mining stock is ideal for investors who have good knowledge about the subject and know what’s happening in the industry. A new-comer on the other hand will have the odds against him.
Investing In Silver IRA
With an Individual Revenue Account (IRA), you don’t keep the silver or gold yourself; the government ensures you only get it after clocking 70 years. This is good because you’re assured about its safety. The other good thing with a Silver or Gold IRA Rollover is that you’ll accumulate so much silver and won’t be bothered about short-term plays.