Archive for the 'Silver Investing' Category

The market took a rest for the month of December and most of January.  It looked like the markets of old, when prices just kept climbing with intermixing of small declines for profit takers to reap the rewards of the most recent jumps.  But, as news of inflation, jobless numbers remaining, and earnings not quite what everyone thought they were going to be, we’ve seen some large declines.

So, is it all money back into previous metals?  Ride the gold train all the way up?  We’re not sure about gold, but silver is definitely still looking good in our minds and remains a buy for many at the current price of $17 an oz.

Historically, silver is no where near it’s non-inflation adjusted price of $50 per ounce, while gold is setting a new high every other week.  So whats the deal?  Will silver finally correct itself or will we see the price of silver take a back seat as the rest of the words markets wait for the economy to recover.

Buying silver, as we said last month, for 2010 may be one of the smartest bets you can make with your money. And as we wrote that, silver was around $17 an ounce. Now, just days into 2010, it’s already creeping back towards it’s 52 week high.

$19 is near for the price of silver and if you want to buy silver, now may be the time to do so. With the jobs market still shaky and earnings reports for a flurry of companies on the S&P 500 due out in the next month, you may want to put a little bit in silver to keep your rear end covered.

Gold, although still rising amid recent selloffs, is high priced and difficult for some to get into. Well, silver tends to follow the trend of gold and you may want to ride the wave. Just look at the chart below at how closely silver follow gold. This is a 1 year comparison chart of the price of ETFs, GLD and SLV.

If you think gold is going to rise, you may just want to buy into silver and watch that price follow all the way up.

The recent stock market rally has allowed investors to regain some of the losses they endured last year.  Commodities like silver and gold are no exception.  You’d think with a strong equities martket they would be, but nope, this isn’t the case.

Instead, with the dollar looking to weaken based on a fed that continues to print money, precious metals may be a good buy.  So how do you get into precious metals?

Well, one way is to buy ETFs like the silver trust ETF SLV. These types of funds allow you to directly invest in silver and gold without having to buy the precious metals themselves. But the question is, will silver, and likewise SLV be abel to survive the market rally? We think yes. Even though gold and silver have had amazing gains, we think they will continue to do so.

Although this is just our opinion, you have to look at what might cause this. Inflation, due to all that money printing, may cause investors, who like to hedge against downside risk of their dollars being worth less, by investing in silver. Others may want to play the silver game based on the fact that china and markets like it, namely india, are expanding at a rapid pace, and all those people are going to need things with gold or silver in them.

That’s why, it may be prudent just to keep a little SLV or GLD in your portfolio for the time being.

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.