What is the price of silver you ask? About the same as it has been for a month now. Although it seems to be bouncing in the low twenty’s, we haven’t seen the price for an ounce of silver move much since the price dropped like a rock about a year ago. This comes as the FED continues to push forward with reducing the amount of money they’re pumping into the US economy through the bond buy-back program.
What does that mean for you and I as people who watch what the price of silver will be doing in the next month or two? Well, who knows. Money will be flowing into safer bets which may not mean precious metals as it has in the past. Given the bumpy ride that came when the Fed announced that it would taper back in June we may see more of the same in the near future.
The price of silver today finished at $22.89 per ounce which is slightly down for the week but overall not going crazy.
There are many ways you can invest in precious metals. However, the first thing you should do before putting money into silver or investing in precious metals is to learn about the pros and cons of investing in previous metals. There are different tax consequences that can affect your investments which you should learn. You should also learn the history of and what makes the price of gold and silver go up and down, especially that last few years.
You should learn about any investment prior to making it but most people don’t know much about silver investing so it’s even more important. Once you’ve learned a little you can then look into the various ways of how to invest in silver.
Buy Silver or Gold ETFs
Silver and gold ETFs are probably the easiest way to purchase previous metals. There are several of them out there. SLV is the first one that comes to mind and invests in physical silver tracking the ups and downs of the spot price of silver.
Buy Silver Jewelry
This method is probably not that recommended but you can see how easy it can be. Just go to a store and purchase. However, there are all sorts of grades of silver jewelry, platings, and everything in between. We aren’t going to start to discuss all the ins and outs of this so you should just go and check it out yourself, see if it’s for you.
Buy Silver Bars & Bullion
This has become a much more popular method, owning the physical silver yourself. The only problem is how do you go about storing all that silver. It can be tough to say the least. Storing precious metals that are heavy bars or coins can take up a lot of space and be a bit dangerous too. Physical silver bars are easier to walk off with than say a share of a silver ETF.
Above we provided three methods for you to purchase gold and silver and really, almost any precious metal. We can’t stress enough that you should be doing as much research as possible before embarking on any investment into precious metals. Other than that, good luck!
The precious metal silver has seen some bumpy roads over the past year with the last six months seeing a decline from a little under $30 per troy ounce to just over $18 per ounce. Needless to say, it hasn’t been good.
However, since July silver and it’s precious metal counterpart, gold, has seemingly bounced back. Silver is now just over $23 per ounce and holding steady today. Does this signal a good time to buy?
While we don’t necessary think it’s a good time to dump all of your money into precious metals, we do think that silver might have some wiggle room back up to where it came down from earlier this year. While indications are that inflation will be kept at bay with some of the fed changes in the coming months, the market is going to get rocky at best and putting your money into precious metals may on the top of some lists.
Buying silver might be a good way to ride the even keel precious metal while gold and platinum bounce around.
For those of you that have been following things other than commodities, “things” such as equities, you’ve probably been wondering what you should do with your money, because you’re not about to put it into trading on the NASDAQ or NYSE. Of course unless it’s trading SLV.
That just may signal a time to getting into buying silver. One of the tougher things to do is to figure out how to buy real silver bars and not just show pieces that might be only part silver. The best thing to do is to buy them through an ETF like the one mentioned above, SLV. However, if you want to own the real thing, there are many many places you can look for silver.
One of those places is your local jewelry and metals exchange shop. These places will usually buy and sell precious metals in addition to making that pendant you’ve always wanted. Since they’re local, you at least have a place to go back to, so long as they stay in business, that you can take your silver back to if it turns out not to be as pure as you once thought.
The next place is of course online. This is where you need to go to someone reputable if you’re going to buy physical silver. You’ll need to make sure the place has some number or person you can chat with, get a feel for the company. Next you’ll want to make sure they have some type of return policy. You may have to pay shipping, but it’s a nice piece of mind.
Of course, make sure everything paid for is secure, that goes without saying.
Finally, see if the minted bars or rounds they sell come from reputable companies such as Northwest, Johnson Matthey, Silvertowne, etc. There are plenty out there, and make sure they’re .999 pure silver. Other than that, price them out over spot price (which you can get here with us) and good luck.
Remember buying any investment is a risk, so make sure you can take it.
Investing in gold and other precious metals has become a very popular investment over the past several years. People who are looking to invest in this area, however, should take some precautions. Historically, investing in commodities like precious metals has always been considered a high-risk investment.
Before investing your money in precious metals, take some time to think about the following questions.
1. How much of your portfolio will you invest?
As a general rule, you should try to spread your money out among a variety of investments. While the exact allocation or distribution of your assets will be dependent on factors such as your age, age at which you want to retire, net income, total amount of money you currently have invested, and your risk tolerance, it is important to make sure that you do not have all or most of your assets heavily concentrated in one area.
Because of all of the advantages and risks to investing in these commodities, financial advisors usually recommend that potential investors keep a maximum of twenty percent of their total portfolio invested in gold, silver, and other similar metals. Investing more than this portion of a portfolio is usually thought of as being too risky for most individual investors.
Unfortunately, many people tend to ignore this rule and invest everything they have into commodities. This can lead to you losing your life savings if there is a sudden downturn or dip in the precious metals market. If you’re considering this investment, be sure to keep the majority of your money in other investments.
2. How will you come up with the money for the investment?
Deciding what money to invest is as important as deciding where to invest it. Some people choose to invest in precious metals within their retirement plans at work. This means that they are using the money they would have otherwise put into other investments in the precious metals market. Because it is inside of their retirement account, however, they will need to plan on keeping the investment for a long time.
Other people decide to invest the cash they have or take on unsecured debt, such as a credit card, to get the money to invest. If you choose to do this, make sure that you are investing money that you can afford to lose. Remember that the market can vary a lot, making it a less than ideal place to put money that you may need access to right away.
Taking out a loan in order to invest in precious metals is very risky. In addition to having to pay back the principal, you also have to make sure that the investments nets enough to pay back the loan and make a profit. Take out a loan only if you are very experienced with the commodities market.
3. How long do you plan on holding on to your investment?
While holding onto precious metals for the long term (that is, more than five years) has historically turned a profit for most investors, it is entirely possible to lose a significant portion of your principal by investing in precious metals. While the fact that gold and silver have never traded at zero on the market is touted as proof that this is a safe investment, the truth is that it only means that an investor will probably be able to hold out during a price drop and wait for the price of their investment to come back up.
Nonetheless, investing in the precious market over the short term can be very risky. It is next to impossible to predict what will happen to the price of gold or silver from day to day. Be sure to carefully consider your overall financial situation before making the decision to invest in precious metals. Also, be sure to research the investment thoroughly before buying.