Archive for the 'Silver Investing' Category

Silver investing is what this blog is all about. Buy silver, invest in silver, get into silver! That’s what we say every day. But why do we say that?

Well, it’s not because we have to say that, we’re not analysts, we’re not paid by any of the big silver ETFs, we just like silver! One interesting point that we found in an article over at business 24 - 7 is about one fact.

The fact that silver is the only commoditiy that hasn’t jumped above it’s all time high during this commodity boom. Yes you read that right, every thing else has jumped above it’s all time high but silver. The precious metal silver is behind. And from what we’ve heard (only third hand so do your research) the silver supply is low and demand stays the same or is growing.

So why the low price?

We’re not sure. But it just adds to the reason why you should buy silver.

The iShares silver trust ETF, SLV is holding strong amid all this up and down buying and selling of silver and gold. The silver trust may be the best way to get into a silver market that some say is going to go even higher.

As oil continues to rise, gold and silver are tending to follow the trends set by the market. When there’s a sign that the economy could rebound and the dollar could be on the rise, the precious metals fall. But as the market shakes with rising oil prices, people are back buying silver and gold. A big way they buy these precious metals is to buy into the silver or gold ETFs (Gold, IAU).

These funds are easier to trade and cost an investor less in the long run than buying silver or buying gold directly in the form of bullion bars or coins. The two trusts are holding strong, fluctuating with the price of gold and silver as they should since they are backed by the precious metals.

The stock market is rebounding, the dollar is showing signs of strengthening, and banks may be doing a little better. A little. So should you be taking your money out of commodities like silver and gold?

The recent drop on silver prices may be a little premature but everyone new it was going to happen sooner or later. There wasn’t really a huge drop in production or spike in demand because of some discover about silver. It was a run up because the price of most commodities was increasing such as oil and especially gold.

So is this run-up done? Well that depends on a few things. Sure there will be price increases based on the economies emotion to financial news. But if you believe what many feel, that the huge growth in countries like China and India will keep demand on all the worlds resources, including silver, then investing in silver is still a smart bet for the long term.

Buying silver bullion isn’t your only option and may not even be the best one because of the tax implications of owning it. You may be better off buying ETF’s like iShares SLV Silver Trust ETF. You can trade it easily online and can hold it for the long term and take advantage of lower taxes should the price of silver keep increasing.

So that begs the question of Blog Silvers readers. Are you still investing in silver?

The price of silver saw $16 in mid 2007 but since has hovered around the $13 and $14 range. Until this past week, when it shot over $15 and began flirting with $16.

The US economy is down and for the most part investors are looking for other places to put their dollars. The fed is claiming to be looking at a half point reduction at the end of the month meeting which is sending a lot of investors into turmoil.

That’s a definite sign of a bad economy with a poor outlook.

For precious metals investors it’s a different story. Those of you who have been quietly buying stock piles of gold, silver, platinum and the like have seen your portfolios doing well. Even if you own mining stocks, or ETF’s like SLV, you’re doing well too.

As the year unfolds, taking your money out of those investments tied to the weakening dollar may be a good choice.

The price of silver, which peaked at near $16 an ounce back in November of 2007, a high not seen for over 20 years, is headed back to $16 as the dollar weakens and precious metals become the safer investment to preserve your capital.

Silver has had an impressive run over the past year, doubling in price and reaching those highs but has leveled off for the past few months as America tries to determine just how bad the subprime problem is.

As stocks retreat among this economic uncertainty precious metals, oil, and other companies dealing with the production of both become the best bets for making a few dollars. The ETF SLV has become a great little investment for some as it follows the price of silver and has reached an all-time high on these latest prices. Buying it is as easy as a stock and gets you into the game without having to buy silver off of your local pawn shop.

The price of silver is on the rise and there are many ways you can take advantage of it. We’ve already talked many times about the iShare silver trust SLV which has been following the price of silver as it should. It’s an easy way to get into silver rather than buying silver bars, which sometimes can be a little daunting and might require a safe or at least renting a safe deposit box.

You can also get into the silver market by investing in silver mining companies or other precious metals funds that deal with investing in not only metal itself but also mining companies. This can keep you diversified.

I must start out the following list of silver mining company stocks by saying that I’m not suggesting you buy these particular stocks, but if you’re bullish on silver this may be just another play that you want to investigate.

Stocks
General Moly, Inc - GMO
Hecla Mining Company - HL
US Gold Corporation - UXG

Funds
Vanguard Precious Metals and Mining - VGPMX
RBC Global Precious Metals - RBF468
BMO Precious Metals - BMO147

Precious metals investing can be a very lucrative investment strategy, especially during times when there is little faith in the value of the US Dollar. People look for new places to put their money and silver could be that place for you. However, if you’re in debt, like credit card debt, you may need to work hard to erase that debt so you can start investing wisely.

This article should give you some good pointers and resources to help you have proper debt management and enough money to invest in precious metals.

The first thing you need to do is develop a plan to erase your credit card debt. Carrying balances from month to month on high interest credit cards for purchases like movies, dinners, handbags, and more will get you no where fast. You need to create a plan and find out how long it will take you to get rid of that debt at your current APR. We suggest using this credit card payment calculator to get you started.

After you find out what your payments on your current APR are, find the next highest APR you can handle on your current budget. After this find out what your payment schedule would be with 0%. Plan for several scenarios.

Now find credit cards with APRs that fit one of these plans. Start with the best and then move your way down. If you find yourself back to where you started, start over and look harder. If you find yourself stuck maybe you should look into getting a debt management program to help you out. These can really push you to find good rates and get out of debt sooner.

Once you get out of debt, stay out of debt. Once you save a little money and are ready to invest, now look into precious metals as an option. You may like what you see, especially if the dollar is down.

As the value of the US dollar turns south a lot of people are looking at what else to put their money in besides the stock market and savings. People look to financial analysts, books, and online resources to get any and all information they can about where they should go with those sinking dollars. That’s why we want to expand your resources and let you know about an investing blog we found called InvestingBlog.org.

They’ve got lots of great articles to help you learn along with regular updates to keep you posted on how your particular markets are going. Some of the markets our readers might be interested in reading about aside from the traditional markets are for starters the futures and commodities markets.

You probably came to this blog because you’re interested in silver, which is traded in these markets. You can follow what’s happening and learn about other possible plays in these markets besides just investing in silver.

Another market that you might be interested in research while the dollar is down is the forex market or foreign exchange. Why put all your money in US dollars, especially if other markets are beating the pants off the US Dollar. You want to maximize profit. Keep up to date with their posts.

All in all you want to just keep searching for more and more financial resources. The one we mentioned is a good one but there are plenty more out there. We’ll keep sending them your way but in the mean time check our InvestingBlog.org.

There are hundreds of things that affect the price of silver. From the New York Stock Exchange to the price of oil, to the way the daisies are growing in Idaho. But to better estimate which way the price might go, and be better prepared, a silver investor should know a little bit about the history of some of the markets that effect it.

This site all about the stock market gives you information on not only the NYSE but also other markets around the world. Silver is traded world wide and no matter where you are, there’s probably a stock market molding how your business market is being run.

Knowing about these different markets, even if it’s just that they exist, can give you a leg up on a silver investor who only thinks the dollar and the New York Stock Exchange push the price of silver around. Going further than just that they exist, being able to answer the question how does the stock market work is also going to help any silver investor.

With that simple information one can know how the price of a silver mining company gives insight into how next years silver is going to fair. If the price is plummeting, you need to ask why it’s doing so, and if you can answer why, bad managment?, broken machines?, not finding silver? If you can answer those questions you’re on your way to a better silver price estimation.

Also able to help you out is knowing what’s happened in the past. Knowing events of great stock exchanges like the stock market crash of 1929 or the bubble burst of 2000.

Knowing all this information can help you become a more savvy silver investor and increase your bottom line.

You can’t invest money in precious metals unless you learn how to save money. That seems silly but so many people who want to become rich don’t take the time to learn how they can save money and make their money work for them.

That’s why you need to read as much as you can about money issues so you’re ready whenever you need to make and save a few extra dollars, and hopefully invest those extras dollars in some precious metals like silver.

One of the main places you can save money is throughmortgages and building equity rather than throwing your money out the window by giving it to your landlord. Buy a house and begin building equity. Equity that you can use to invest later if you’re wise.

While we’re talking about mortgages we might as well jump right into loans and most importantly making sure you get a sucured loan.If you don’t have a secured loan you might as well keep throwing that money out the window because even the slightest wrong doing can throw your financial world into turmoil.

Also on our list of things you should learn about when trying to increase your wealth and save money to invest in things like precious metals is finding out if you are being overcharged forcar insurance. You might be able to save a bundle just by knowing what you’re paying for in car insurance and what you don’t really need. Maybe changing your deductible to save know could end up helping you in the long run by using that saved money to invest in silver or other precious metals investments.

Making sure you know where you could save money is half the battle, now you just need to implement and do the saving!