Investing in precious metals is a common practice when the value of paper money seems to be fluctuating wildly. This is because precious metals have a high level of stability. The most popular of these kinds of investments is gold, but silver is rapidly finding its place in a growing number of portfolios.
Advantages of Silver
- The main advantage of investing in silver is that it is a real asset, meaning that no matter what happens economically, silver will always have some sort of value. Stocks, bonds, and paper money can become worthless in certain circumstances.
- A second advantage is that it is easy to start small with silver investments. You can begin investing with as little as one ounce of silver bullion, which will currently cost about $20. Gold, on the other hand, will cost more than $1,000 per ounce.
- A third advantage is that demand for silver is increasing because the metal is being used in a greater number of manufacturing processes.
- Finally, silver investments can take a variety of forms. This increased flexibility allows investors to find a method of trading that will suit their needs and ensure profitability.
Silver Investment Options
There are three main investing options with regards to silver. The first is the Exchange-Traded Fund (ETF). This method of trading can be done through a traditional broker or online. Basically, an ETF turns silver into a bullion-backed stock that is able to be traded on the stock exchange.
A second option is to trade silver through mutual funds. A silver-based mutual funds has a number of shares that are for sale. These funds are either backed by silver, meaning that they actually own the metal, or they have stock in companies whose primary purpose is silver mining. This is an easy option that provides a lot of support for the investor.
The last option is the trading of physical silver. The actual metal itself can be purchased in the form of either coins or bars, each of which come in varying purity levels. This is easily the most secure method of trading silver, ensuring that value is retained regardless of how other currencies perform. However, this silver needs to be stored. It is possible to store silver in a bank safe deposit box or a secure home safe.
