Ever thought of investing some extra pennies in stocks or shares? Perhaps you’ve considered silver or gold? You can invest in the silver market by buying coins, bars, coins, exchange-traded funds or exchange-traded notes.
However, your investment strategy should change from time to time, given that silver is a highly volatile metal. One reason why this metal is highly volatile is that the supply of silver is extremely limited. This means every time there is even a small increase in the price of this metal in one part of the world; its price would go up or down elsewhere.
Silver as a last resort
It may surprise you that silver is the last bet when it comes to investing in precious metals. Seasoned investors buy silver because this metal is relatively priced lesser than gold. Silver can be easily exchanged with cash in times of need. Since gold has a higher stored value, it is difficult to get cash when you need hard cash. Therefore, if you foresee that your portfolio is getting eroded, it is time to buy silver.
Understanding current events
Stock prices rise and ebb depending upon global cues. The same goes for gold and silver prices. Investors should track global and national events and connect them with the prices of gold and silver. If there is something happening which will cause the silver prices to fall, it is time to invest in that metal.
Collectible versus investment
Many people buy silver coins, antiques, etc. thinking they are investing in this precious metal. This may not be necessarily true. Your investment in a particular object should be valued by the other party too.
Secondly, while selling off your valuables, you should get the right amount of cash. Unfortunately, most potential buyers of your silver collectibles will not appreciate their value, and in times of crisis, you may get lesser than what you want. Moral of the story- Buy only that much collectibles which can be exchanged for money.
Not more than 25% allocation
In the past few years, the world has faced several threats like floods, war, earthquakes, etc. Some threats were manmade like currency meltdowns. In these situations, our portfolios get depleted very quickly. So, the question is, how much silver to buy to keep our portfolio safe? There is no easy answer to this question. Some investors advocate an upper limit of 10%, while for others, even 25% is a modest diversification. In these cases, investors will have to use their discretion and invest within their budgets.
First, speculate, and then invest
Speculation is like cough syrup. It is good when taken in small doses, but it is bad for our health when we drink it in high quantities. If you want to know which way the silver market is going, speculate first. Speculation is not an investment; rather it is like placing one foot at a time to judge the depth of water. Make your decisions according to your speculation.
Buying silver is quite easy. It is as easy as buying stocks. Click onto any website to get insights on where to buy silver, market trends, and much more.
Pick the right dealer
Your dealer is an important part of your investment strategy, so pick one who is reliable, and gives you the right information. Some investors are swayed by extremely low prices offered by their low dealers. The latter probably cut their margins to get new customers, but fail at delivering the silver in time. Please choose those dealers who keep their deadlines. It’s also important to know whether the silver you are getting is of good quality.