Silver investing lies far off the mainstream's radar. When one does come across an article about silver, it often sounds as if the journalist spent a few minutes on Wikipedia the night before. But the serious investor wants and knows more than that.
In terms of paper contracts or silver futures, big players have long dominated
the scene, keeping prices artificially and illegally low by short-selling silver in quantities far beyond what actually exists. This practice is also known as naked short-selling.
However, this tiny market is due to change dramatically. In fact, this change is long overdue. The keys for the silver investor, large or small, are to get in soon and to hold on to what you buy.
Why Buy Now?
There are many reasons (in addition to hyperinflation) why the silver price will still be low at $100 per ounce. The least of which is the natural tendency for the majority to buy all the way up to the top.
Remember that silver, in addition to money, is an indispensable industrial and strategic asset. This changes the entire profile of silver when compared to gold.
Not to mention that
investing in silver dollars
can be as easy as walking into your local coin shop.
There are various investment options for silver and it is ultimately up to you to decide which is best. Investigating each is as important as understanding the chemical properties that make silver a useful industrial metal.
Here is a list of the more common investment vehicles in an order that I deem highest to lowest in risk:
Unallocated silver pool investments
Silver mining stocks
Silver futures contracts
Other precious metals index funds
If you are serious about silver investing, consider physical silver that you can hold!
The Benefits of Physical Ownership
Remember that only physical or silver bars or coins that you possess guarantees ownership. The beauty is that it is simple to own and manage.
Of course, there are a myriad of investment choices -- including the numismatic or collector's realm. Old coins and/or silver certificates are great to hold, but in our opinion, not the best way to accumulate silver for insurance.
More on the best silver investments here.
The only fees associated are those fees that are incurred for storage and safety. A small premium over spot price from a coin or internet dealer is customary and a good rule of thumb would be to invest about one percent of your investment’s value in security.
As an example, when I made my first investment—about $4000—I spent close to $200 on securing a waterproof and fireproof safe.
Read more about storage and security here.
Furthermore, when you hold physical silver, you and your coin dealer are the management team.
Read about the tax advantages when selling silver coins here.
Buying local and in your community is easy, but it all boils down to basic accountability. You need to be sure that what you purchase actually exists. In today’s markets, rarely can you accomplish this unless you are the possessor.
Human psychology factors into the equation as well—it is much more difficult to return your physical silver than it is to click on "sell".
Silver is the best and the safest alternative to dollars and gold—most see the dollar in a downward spiral, and gold is expensive. Silver investing offers the ease and accessibility of an incredible opportunity in a system without much left for the masses.
Read about how the Chinese are now viewing silver as an investment for their citizens.
All you need to get started is a coin shop and a few dollars.
Here's an example of what a starting silver investment might look like.
There is no minimum to have an account, and no penalty for cold feet (aside from the premium or a drop in short-term price).
For Jeff's overview of why silver investing should always include some amount of physical silver, click here.
Worried about how silver fits in with the possibility of gold confiscation?
Read About Why The Silver Investor Should Ignore the Dollar Index
A Silver Investor Should Diversify Too
Silver Pool Accounts: Use Extreme Caution
Silver Trading Can Benefit You
The Best Silver Investments Can Help You Find Financial Harmony
Could Hyperinflation Happen in the U.S.?
Silver Bars Offer Alternativess
The Silver Certificate: Could It Happen Again?
Silver Coin Investment Adds Strategy To Your Portfolio
Today's Silver Investor, Tomorrow's Leader
A Mess of Silver Futures
The Safety and Ease of Silver Investment
Investing In Silver Dollars
On Selling Silver Coins: Renewed Interest in a Tax on Stocks Proves Metals Are the Place to Be
Silver As An Investment For The Chinese
Making Sense of the Fed Discount Rate
How Should The Silver Investor Diversify?
Silver Manipulation: A Chart That Speaks For Itself
Read about the China's strategy to buy precious metals.
Silver And Margin Requirements
The Rise Of False Silver and Gold Gurus
Silver - Time is Slipping Away
Harvesting Weak Longs From Silver Futures
Silver Investing in the Age of Sentiment and Fiat Currencies
Silver and the Sanctity of Savings
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