I have been buying silver since past few years through BGASC. somehow Silver is my personal favorite and I bid for it to do well in next 20 years. Better than it had performed in last 20 years. But can I convince you to be a silver investor? Read my other post Gold or Silver, which is better investment.
Let me try with a few reasoning with which I am convinced pretty much.
Is Buying Silver a wise decision?
Investing in silver is considered a good source of making money. Although silver has been lagging recently, it should not be overlooked (either long or short) because it still is in a 17 year, secular bull market.
Its transient passiveness may lead you astray. It is really a deserving and yielding place of trading your money. There are no guarantees that you can earn money through silver investing, but obviously, you can achieve success by taking a calculated amount of risk.
Before taking the bull by the horns, you must have a brief understanding of what you are doing. You should have theoretical knowledge about what kind of trend silver is in right now (super-long term, and medium term). This will allow you to gain the maximum profit out of this investment.
Some advice for silver investment
- Before investing your hard-earned money in silver, you are supposed to take an eagle’s eye view of the incumbent market. You should know the trends of the silver market, as it isn’t similar to stock market. The way silver market reacts towards different events is completely different from stock market. Silver, for some odd reason, works very well with technical analysis, while stock doesn’t always do so.
- Before investing in silver, you should have a sound knowledge of this trade. In other words, you should know the basics of this investment. Instead of experimenting, you should spend some time reading about successful silver investors (such as Jim Rogers) so that you may not get bluffed easily but silver’s high, temporary volatility.. Also, you meed learn how to buy or sell silver at right time. Read about the silver markets. That’s all I can say. If you simply dive into the silver markets, you will lose money. I guarantee you that.
- Regarding silver as an investment, you will find plenty of material online and blogs that are run by successful silver traders. However, keep in mind that a lot of “silver experts” have never had any real experience in trading silver. There’s a big difference in saying the right things, and doing the right things. Before you follow a blog about silver, check to see if the blogger behind the blog has actually been a successful silver investor. Learn as much as you can from these gurus and adopt an investment strategy of your own.
- There are some ways through which you can invest in silver. You can invest in silver bullion, silver coins, silver futures, silver ETF’s (exchange traded funds) etc. I prefer to invest in silver ETF, because those are in essence the same as trading one “share” of silver.
- As mentioned above, silver bullion are the most sure-fire silver investment. You must have detailed knowledge, tips and tricks on such an investment. While buying silver, you should look for those sellers who are ready to sell silver as near to its spot price. This doesn’t include the seller’s fee. A general rule of thumb is that greater the amount of silver you are purchasing, lesser would be the fee and vice versa.
- Prior to making any investment, you should make a thorough calculation of the amount of money you can invest in. At all times, you are required to keep a handsome amount of money in cash. This will allow you to cope with unexpected circumstances.
- To earn substantial money through silver investment, you have to be more of a trader than an investor. Silver often fluctuates more than 70% each year, so as you can see, not exactly suited for a buy and hold investor.
Disclaimer: Don’t go by my speculative advice, apply your own judgement before you buy Silver, if at all. However, I do believe silver is still in a secular bull market (17 year-long). In the short-medium term, there are often fluctuations of up to 70%. I’m waiting for silver to fall more, and then buy.
If you are buying silver for short-term, do remember that silver is not a liquid asset which can be sold and en-cashed easily. Even though on paper price of silver increases, it’s very tough to sell at that price, combined with fees and commissions you might end up losing money on silver investment.
There is a strong wave of thoughts around possible gold and silver bubble being expressed by investment advisers, you need to be cautious.
Readers, buying bullion is a risky proposition for your hard-earned money. I buy gold and silver from BGASC, so far I haven’t faced any problem what so ever. Is there a better place to buy from? And the obvious question, what you think ? Can Silver outweigh the stock market or Gold?
Denise @ The Single Saver says
Very interesting article. I had some silver shares years ago and they did quite well at the time. I haven’t thought about them recently, though… maybe I should!
Best of luck! Advice you to monitor price movement for few months before buying in.
I am invested in silver and do believe that there is still room to run with this trade. I think $50 will be taken out in the next year or two.
If I had some extra cash to play with (that I could lose) I would do this, it’s so volatile short term but I also think there’s some gains to be had… not for the faint of heart though!
definitely not for faint of heart. CFM which form of silver you have? Shares?
I am a silver dealer, take my words you can never get the paper price when you sell your silver. My personal advice is to buy metal stocks.
One of my fellow bloggers recently faced this Michael. What’s the typical commission you guys charge? And, do you sell at higher than quoted price?
Tony @ Investorz' Blog says
When I was younger I bought physical silver once. The markup was around 20% when I bought up. They didn’t charge anything when I sold it though.
Tony @ Investorz' Blog says
BTW. I’m now long SLV.
The form of silver is important. Silver ETFs are not the same as bullion, and those are not the same as old dimes and quarters. This is important to understand.
World of Finance says
I think it’s a good idea to have some of your portfolio exposed to precious metals. Nice article. 🙂
It’s funny how we never really think of silver because the news always focuses on gold. -Sydney
Financial Success for Young Adults says
I had a friend that cashed out some silver a year or two back. He had silver bars in a vault at his home. It is definitely a non liquid asset.
Bullion Buyer says
Holding physical bullion as a core part of one’s precious metal portfolio is absolutely critical. Many of the bars pledged to tradable securities (ETFs, futures, etc) are assigned to multiple owners – meaning there is much less actual bullion underlying these securities than the market thinks.
Interesting to know that but, why do you think owning physical bullion is core?
GLD chart info says
Great tips by Tony. It’s really important to understand how the trade and market work before investing. Thanks for the great article anyway!
Thanks for the tips. I believe silver is worth holding and the price has been surging ahead lately, but I agree it is not as liquid as gold especially in the UK with VAT added.
Silver Updates says
Yes, Silver is always a save heaven investment and investors use it to hedge their position in currencies and equity. But it need patience to wait for correct price to invest in. Noe most of the investors and traders expect silver price to rise above $44 in coming months. Q3 also boosting the silver price up.
silver investment says
Silver Investment is a good idea and making it a part of your investment portfolio can get you good results. But it depends on the form of silver you’re investing in like Silver ETFs are not the same as bullion.
John Sullivan says
One thing for sure, putting some of your hard earned money into silver investments is certainly better than just throwing it away on the Lotteries. Playing a lottery is an absolute guarantee that you will lose your money. With an investment that you have put some proper thinking and timing into, you can indeed profit. It’s impossible to lose substantially on your investments, unless of course you really don’t know the implications of silver investing. If need be get some expert advice and you may just be surprised at how successful you will be. GOOD LUCK IN YOUR ENDEAROR. By the way I only deal in silver bullion, 1 oz. bars. You can even sell those to almost anyone and make a good profit. Try it sometime. Take about 50 or so with you to the bar and see what happens. People get a little crazy when they see silver, and believe me you will be well pleased when you show them and serve them your sales pitch. I do it, and why cant you. You have absolutely nothing to lose. The choice as with everything, is yours.
John Sullivan says
To give you a better understanding of why you should invest in silver bullion, you may want to study at what is actually happening in the Silver Industry. The need for this metal in various applications will rise 10 fold over the next few years and that subsequently will lead to an unbelievable rise in its value. There has been a new discovery that will advance the production of solar panels due to this discovery. Because of this new technology, oil will be out performed by this element many times over. This element will be used to produce much cheaper solar panels with silver being used as usual as one of its components. These solar panels will provide electricity to heat homes rather than gas or oil. This will also help with our problem with carbon. Can you imagine this… everyone will be using solar panels, and silver because of its requirement will be in high demand.