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.
The price of silver is finally above $34 once again. It’s been since early November the a troy ounce of silver has been above that price mark and now, when will it stop?
Gold as well has been moving up with the price getting above $1750 for the first time in almost as long. Again as we’ve mentioned previously inflation and poor economic conditions that drive people out of equities usually drive them into precious metals.
The other thing looks like its been strong economic pressure from emerging markets like China. New buyers could spark a drive up in prices. The drive up could happen Because there are more buyers with more money.
The precious metals market has been looking for any sign that the slide happening over the past 6 months is going away. Well both gold and silver prices are finally rebounding with gold leading the way to an 8 week high.
What could be causing the rise?
Looking to Barron’s online they say…
Prices moved higher during Asian trade as Chinese buying picked up following the Lunar New Year holiday, according to a Dow Jones Newswires report. But analysts remained cautious, pointing to an 11.2% rise so far in 2012 in gold futures prices. The PowerShares U.S. Dollar Index ETF (UUP) was falling some 0.27% in pre-markets as the CurrencyShares Euro ETF (FXE) was rising by 0.39%.
That could mean good news as the market looks to pull investors back in.
The price of silver had retreated over the past 6 months from a high of nearly $50 back down to a more reasonable price point according to some investors. But this could only be a temporary holding point as the economy looks to be somewhat strong starting out the new year.
Two factors usually affect the price of silver in a positive way. A bad economy where equities and bonds both look gloomy, or inflation. Since it appears, even with Europe dangling by a thread, that the US and chinese economies are bouncing back, one would think the price of silver might stay at these lows or even fall lower still. Possibly by to the teens.
But, what about inflation? The fed just announced that it intends to keep rates low until 2014 in order to continue to try and help a housing market that just won’t recover. With rates that low and money already having been pumped into the economy, that could spark higher inflation than normal.
Those factors could lead the price of silver to jump unexpectedly and catch a lot of investors on the sidelines who recently dumped their holdings in silver and silver ETFs like SLV.
While we don’t know just what the future holds for the price of silver we can say that it isn’t as certain as some my think.