Investing in Silver – A Guide to Buying Silver as an Investment
With the staggering increases in silver prices, many people are looking at the precious white metal for investment purposes. With the frail US economy, a fall in dollar value and Europe’s debt woes, people are looking at safe havens to invest in. The demand for precious metals has soared even as the prices of gold and silver have shot up. 2011 has especially proved to be a fantastic year for silver, which is being hailed as the ‘new gold’.
Start investing in silver today, visit JM Bullion
Different ways to invest in silver
Buying silver bullion coins: Silver bullion coins are a good way of investing in this precious metal. There are two types of silver coins that can be bought. ‘Fine silver’ coins are 99 percent pure and have a high value. The American Silver Eagle is a popular choice that is issued by the US mint. When you buy one American Silver Eagle silver coin, you get a government guarantee with regard to its purity, content and weight.
Buying silver bullion bars: One of the more traditional forms of silver investment is in the form of bullion bars. Some banks allow buying and selling of silver bullion over the counter. You can also buy them online from a reputed dealer or from the physical dealer location. A silver bullion bar will contain 99.9% pure silver, with sizes ranging from one ounce to one-thousand ounce. The price of the bar will depend on the current market price of silver, and other premiums that are unique to the dealer in question.
Purchasing from online silver dealers
One of the easiest and most convenient ways of investing in silver is to buy coins, rounds or bars from an online dealer. While you will find many such online dealers, it is important that you pick a reputed and experienced name in the business. JM Bullion is a leading online silver dealer offering reliable services and attractive prices. The dealer delivers your order to the specified destination on time for a reasonable shipping fee. There are no hidden costs to worry about, and the dealer also offers many payment options.
You can check the current market price of silver, and study trends before taking the plunge. As prices appreciate or depreciate on a daily basis, it is important that you wait to seize an opportune moment to buy the precious metal in its physical form. As the prices are subjective, and can vary across dealers, you should conduct a cost comparison before investing in silver. Steer clear of dealers who charge unfair premiums and do not reveal all the associated costs from the outset.
Making monthly incremental investments
If you go to a financial expert for help with your silver investments, he is most likely to advice you on hedging and monthly increments. This is a cautious and wise way of investing that will require some time and effort, but has the potential to pay big dividends.
Monthly increments are made to gradually increase your hold or share of silver in your portfolio. If you face financial crisis when the economy crashes, the hedged amount of silver will be enough to protect your financial savings. With the fluctuating prices of silver, hedging your investments will be a safe option. Incrementing in small quantities on a monthly basis can help. The amount you want to increment can be anywhere between $100 and $200, and is left completely up to you.
Silver as an alternative to other investments
Compared to many other metals, silver has a higher value due to its industrial and health care demands. Used in many fields of medicine and science, the rate of mining silver has increased drastically in the past few years. The white metal has proven to be an attractive option to invest, especially over the past few years. In a fragile economy, precious metals are a better investment option compared to company stocks.
Physical silver is a good way to protect your money and also provide security in the time of crisis. The present year is the best time to invest in something solid as the prices for precious metals is rising. Silver as an investment is highly recommended by all financial experts. You should allocate 5%-10% of your investment portfolio towards gold and silver.
If you are an active investor looking to buy and sell silver when opportunities arise, you should keep a track of the current market prices of silver. Also ensure that you keep a record of your silver trading and transactions for tax calculations.