I love writing about little baby steps in personal finance. Like how to invest your first $1000 or how to earn $100 in a day legally. This is another baby step guide. As an investor, you might want small exposure in metals. Without enough money, today, it’s still possible to invest in the future of gold and silver. This post is about finding ways for you to invest your first $100 in metal future.
A story is told of two people who built houses, one built his on a sandy foundation and the other of a rocky foundation. Now, who do whose house do you think withstood the storms of life? In simple words, what am trying to say is that it is good to make the right choices especially when it comes to investment matters.
Some people think that investment needs a lot of cash in order to reap the benefits something which is not really true.
Investing in gold and silver is one of the best decisions you can make. Someone may ask, why invest in silver and gold? Let’s start with silver which is more volatile with fewer cost barriers and it is also a quick profit maker.
On the other hand, gold has for many years been used as a medium of exchange and is known to withstand inflation. It is also very expensive to purchase.
Therefore rushing to invest in these two precious metals is tantamount to playing with fire. You need to have a strategy that will work out for you. There are various ways in which you can invest in both gold and silver even with less than 100 dollars.
Investing in gold
Gold is definitely the most precious metal on earth and that explains why it is also expensive. If you are a new investor and probably want gold in your investment list and you don’t have huge amounts of money to buy gold, then you should try investing in small denomination gold coins, in order to be on the safe side.
As much as it would be foolish to think that you cannot completely lose money through this means, it is usually all about relativity and even compared to other precious metals, gold is often more stable.
With your little cash, you can, therefore, purchase smaller proportions of gold also known as EFTs and patiently allow it to stay there as its value appreciates. As a beginner, you need to exercise a lot of patience if you really want to reap big. Do not be carried away by greed and quickly start trading on your gold because you might end up making huge losses.
Do not be carried away by greed and quickly start trading on your gold because you might end up making huge losses.
How to invest in silver
Investing in silver is a little bit riskier compared to investing in gold. You should note that silver is highly volatile and as much as its price might rise sharply most of the time, it also has the ability to significantly decline. Therefore as a new investor in silver, you should not rush things rather you should use it as a speculation vehicle.
An adage goes that it only fools who test the depth of a river with both legs. This basically means that you should make your move with absolute caution and caution here means avoiding investing in leveraged silver or putting your wife and kids in line in the name of silver investments.
The most advisable thing to do is to take advantage of the barriers of small prices in the silver markets to purchase several ounces of silver ETFs and then mark the time when the prices rise in order to reap good profits.
Why most people get disappointed in these kinds of investments is that they are always in a hurry to dispose of their gold or silver. Remember this is not a short-term investment that is if you want to make good money.
It’s like purchasing treasury bills or bonds from the government. You need to be patient enough to be able to get the most out of it. In addition, you can as well decide to invest in gold and silver small jewelry which is currently a booming business especially in the fashion industry.
What you need to do is identify a supply whom you can negotiate with to ensure that you buy with wholesale price and sell the at retail price in order to make some profit.
In summary, there is nothing as important as making a worthwhile investment. For this case, investing in gold and silver is very much possible even with less than $100.
However, you have to be a little bit careful when putting your money on silver. But for gold, you can buy as much as you want since it is very stable and often appreciates in value. Nevertheless, don’t be in a rush to sell them off, learn the art or patience when trading in gold if you want to reap high.
Readers, for diversification purpose you should always find various alternate investments. If you don’t have any exposure to metal then perhaps you can gauge the water by investing that $100 you have saved last month. Why not start now?