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.
If ever there was a low point to buy silver in this run-up, now would be the time. High $16 range right now.
Silver has dropped dramatically in the last few weeks due mostly to profit taking and people calming down about the economic conditions. But should people think that the worst is over and start pulling money out of precious metals and other commodities?
Well I don’t know about you but I don’t think the economy is ready for a huge return to glory. Housing is still slumping, the dollar is still weak, and the Feds are looking towards inflation and recession talk. That doesn’t sound like a huge turnaround to me.
On top of that, world economies continue to grow with China and India leading the pack. Silver, used in many applications, not just for fancy jewelry, will continue to be in demand while the worlds mining companies push to keep up with it.
That and silver ETFs still buy more and more silver making less supply on the open market for those countries to purchase.
Buying silver now is still, in our opinion a good bet. Be cautious of spikes and look into precious metals ETFs and mutual funds to increase your position.
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?
Visa recently had the largest (dollar amount) IPO in Wall Street history providing many of the underwriting banks much needed boost in earnings for the quarter. Maybe even for the year.
This IPO, lower interest rates from the Fed, and some people thinking the price of most precious metals is way too high, like gold and silver, makes for a tough market on silver. In one week the price of silver went down nearly 4 dollars a troy ounce. You knew it had to happen sooner or later, the price was just escalating to rapidly.
So what does that mean for your investment strategy? Should you get out too? Well if you bought at $21, I might have to suggest sticking it out, (although don’t take my investment advice, I beg you). But with the recent sell off, and inflation not being helped by lower interest rates (at least I think that’s how it goes) you may see the price of silver climb again.
But don’t bet the house on it, only as much as you can loose.
Are you wondering how to get in the precious metals “gold rush” that’s going on right now? Should you run out and buy as much gold, silver, and platinum jewelry as you can? Should you surf the pages of EBay and buy up bricks of silver and gold?
Although these options may give you something to hold in your hands, they aren’t very practical for the average investor. Buying physical silver and gold might require you to get insurance on your pieces, that can wipe out your profits. And buying physical gold and silver also puts you into the collectible tax category where taxable gains are at your normal tax bracket, not the possible long-term investment tax breaks you could get if you invested in other methods.
One way to get in on the silver rush is to buy an Electronically Traded Fund (ETF). The main silver trading fund is SLV, the i-shares silver trust. This fund is backed by silver and trades relatively close to the price of silver on a day to day basis. Doing so can keep you the long-term investment tax situation if you keep the fund for longer than a year. And buying and selling the fund is as easy as trading in your normal trading account. Unlike silver bars where you have to go and find a dealer or other collector who wants to purchase them.
Get into trading silver with SLV if you want an easy in on the latest “Silver Rush.”
In our last article we wrote of the price of silver reaching $18 a troy ounce. $18!
Now silver, in one day, has surpassed the $18 mark and shot right past $19 reaching $19.30 in around the world trading. We here at Blog Silver definitely believe that the price of silver, per troy ounce, will reach $20 and keep on moving. With the price of gold rising rising and rising with no end in sight, silver just seems like it’ll keep on track with it.
Silver is your way to get into the precious metals market without breaking the bank. And if the gold market is any indication of where the silver market is going, silver is definitely on the rise!
Silver, per troy ounce, is up to $18 a share, surpassing highs that it hasn’t seen for more than 25 years. Shares of the ETF, SLV, is up 20% this year to $179 a share. Silver is on the rise following golds all time highs.
We here at Blog Silver have been tracking silver for a while, and have been very bullish on silver both with the dollar declining, and with China expanding with the rest of the world, silver is looking like an easy way to get into the precious metals market. It might be tough to get into the gold market, with the price of gold being over $900 per ounce, silver is much easier being under $20.
With silver being included in a lot of computer parts, and the rest of the world catching up to America in terms of technological advancements, the world will need a lot of metal to keep up with all those advancements. One of those metals, easy to get into, is silver.
