Category Archives: How To Invest in Silver

Investing In Silver

How To Go About Investing In Silver

Investing in Silver is flavour of the year in some circles as this sought after precious metal is at an incredible low at this moment in time and due to its clean track record ever since the turn of the century. 

How To Go About Investing In Silver

With gains of $5 per troy all the way to past $30 in 2012, it’s definitely something to look out for.  Some purchase silver as a security against the increasingly depreciating dollar currency while others simply look to diversify their portfolios and make some good profit margins. Whatever side you take, here’s a step-by-step guide on how you can get started.

From the get go, you need to decide what your aim of investing in silver is. This will greatly shape your approach in investing in silver. You need to decide whether you’re looking for a short term play on the market, speculating on the silver prices or whether you want to hold for long term investment. If you’re looking to hedge against the currency depreciation, time is not a factor for you, what you need to do is stock up continuously. If you want to do with some tax reprieves, using a silver IRA can be an ingenious technique. Still you can steer clear of handling the metal yourself and invest through the stock market. If you can’t settle on one method, that’s okay too, you can take on two or three approaches.

Investing In Silver

Best Ways To Go About Investing In Silver

Should you decide to buy physical silver, you can buy coins or bullion. Bullion is usually much bulkier and costs larger amounts. Depending on how much money you have at hand, you will decide to go for either. Steer clear of collectible silver unless you want to do that just for leisure. Ensure you only buy from certified dealers and only buy silver with 99.9% purity. Spread your investment over time by buying different silver brands over time.

If you’re looking to speculate, you’re in luck because silver prices just dipped in 2013 so it’s the best time to buy. Gold prices are already starting to climb and silver is always right behind. Whether its coin or bullion, just make sure you buy from trusted dealers. After that, all you have to do is hoard and wait for the prices to climb. If you’re aiming for a short term play, the next 12-24 months will be favorable and past that the prices are expected to continue rising for another few years before we get another correction.

Other Considerations For Investing In Silver

If you are shying away from buying physical silver, perhaps due to security or storage concerns, turning to the stock market can be ideal. As long as the silver prices rise, your stocks will appreciate and you can cash out quite easily by selling your shares. The same applies to ETFs. With ETFs, you can start investing with very little money. If you choose to invest in mining companies, do some research into the companies before committing your money.

If you would like silver-bright years after retirement, think about getting a silver or gold IRA account. Here you can stock up on silver or gold in your retirement account so instead of having currency that will depreciate each year, your retirement kitty will keep appreciating in value instead.

The Best Way Of Investing In Silver or Gold ?

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.

How To Invest In Silver

There are many ways on how to invest in silver,  when you decide to make the wise decision of investing in silver, don’t be quick to opt for the first company that catches your eye. Some homework on your part is required to make sure you choose the best companies as your investment partners. Whether you’re buying silver bullion/coins or investing in the stocks market, due diligence is called for.

Here are a few tips to get you going on the right path.

How To Invest In Silver Coins or Bullions

Buying physical silver

If you choose to buy silver bullion or coins, first you need to see the silver samples that the company sells. This will let you know that they do indeed sell physical silver. Check to see that the silver in stock is stamped as .999 to ascertain that is has the purity standards of 99.9%.

Next, you need to find out the spot price of silver and compare that with the prices being quoted by the company. If the quoted price is below the spot price then you need to be very wary. Most prices will be quoted just above the spot price. Don’t agree to buy anything way past 10% of the spot price.

Another thing to check is the reputation of the company. Check to see if it has any accreditation such as from the Better Business Bureau (BBB). Also check for reviews online to see if there have been complaints from former clients.


How To Invest In Silver EFT’s

Silver ETFs

With exchange traded funds (ETFs), you want to verify that the trust you’re buying from has the actual silver storage. Most silver EFTs make it public knowledge where their bullion depositories are. Be wary of companies that are suspected of issuing more shares than the actual quantity of gold or silver they claim to hold !!

Also find out if it’s possible to transfer your ownership shareholding to actual silver.


How To Invest In Silver Mining Companies

Silver mining companies

Selecting silver mining companies requires some deeper knowledge of the business. You can find junior companies that have just began prospecting or are still prospecting. Such shares are usually cheaper with a high promise of a big payday. However, they are risky because the company could hit a wall.

Companies that have been in existence are called senior stocks. With these, the risk is lower but the share prices are high too. Production companies can also be counted on for dividend payments thereby offering a good passive income


How To Invest In Silver IRA Companies

If you choose to invest in silver IRA, find out what package the company offers. Also find out crucial information such as where they store the silver bullion. You don’t want to save silver for years only to lose it. Find out how long the company has been in existence. If it has been around for a while then that’s a good sign. Check online reviews and see what other people have to say. Lastly, look for accreditation badges, the more the better.

Investing In Silver

Investing In Silver

Investing in Silver is one of the many ways ordinary citizens can protect themselves from the continuing devaluation of paper currency and hold a tangible commodity that is not prone to economic shocks and political instability.

If you have ever wanted to invest in silver, the right time is now. This is because the paper currency that we’re used to is quickly losing its value and despite furious printing of the notes, almost all countries worldwide are slowly suffocating in debt. This means soon enough, the money that people have worked so hard to put in the bank will not be as useful as they expect. Its value will have been watered down immensely. In the United States, the national debt is rising at $3.6 billion a day!

Investing In Silver

The Many Ways Of Investing In Silver

There many ways of investing in silver. One is by buying physical silver. This is silver in form of coins or bullion. Bullion refers to block-form. If you choose to invest in physical silver, there are many companies today that can offer this service. People who buy physical silver prefer it because they can be sure they own it. Silver coins and bullion can be stored in safes, bank deposit boxes.

One can also invest in silver is through silver-mining companies. This means your fortunes will be tied with the success of the company. Another less risky way of going about this is investing in mutual funds that focus on the same mining companies. Alternatively, one can invest in silver through exchange-traded funds (ETFs). Here you buy a share in physical silver but it’s kept in storage by the holding company. As the value of silver increases, so does your share value. You can also invest in silver IRA as part of your retirement plan, taking advantage of the tax reprieves and the time ahead of you to reap from the price appreciation.

The price of silver fluctuates just like that of gold. It can go up or down. Currency on the other hand is on a continuous nose-dive headed for the ground. The value of silver has been climbing steadily over the years. In the year 2000, the price of silver was 4.95 per troy while a decade later in 2012, it was valued at 31.15 for the same amount! A mega-appreciation of 529%!

In 2003, the price dipped slightly as investors sought to take their profits and diversify ventures. The price dip however, the lowest in three years has opened up a buying frenzy as investors seek to take advantage of the low prices before the index shoots up again and continues its upward trajectory.

Could Investing In Silver Be Your Best Move?

Apart from investment, silver has numerous industrial uses. That coupled with the dwindling availability of silver in mines is leaving very little allocations for investment. That scarcity is what is giving investors confidence of brighter days ahead, investing in silver could well be your next best move.