If you’re a newbie investor, you probably know of some of the most common methods of investing like stocks, bonds, mutual funds, IRA accounts, etc. These are all common ways investors earn money and save for retirement. By now, you’re probably well versed in these accounts, but have you ever heard of commodity investment?
Commodity investing is when you invest in things like raw materials or agricultural products. This can be oil, wheat, natural gas, or precious metals such as silver. Silver is a precious metal that has stood the test of time. It’s a great way to diversify your assets and hedge against things like inflation. Let’s take a look at everything you need to know about Silver before you invest.
There are a lot of ways you can invest
Silver is extremely versatile. It can be used to make jewelry or it can be used to make batteries, surgical tools, and computers. Just like there are many ways you can use silver, there are also a lot of different ways to invest in it too.
Silver Bullion and Coin
You can invest in physical silver such as bullion or coins. Once you make your purchase, all you have to do is wait for the price of your new silver coins or bullion to increase in value. The big thing you have to watch out for are the scammers. Make sure you’re looking at the companies who are dealing with you very closely before you give them any money. You can check out websites like this to help you review each company closely and avoid potential scams. https://www.medzilla.com/quality-silver-bullion-review/
Another way you can invest in silver is through Silver mining stocks. By investing in those who mine the metal from the ground, you’ll be helping the miners raise production over time and you’ll earn money faster because the silver miner’s products will rise quicker than the actual price of silver. Try to make sure that you’re not investing in companies that don’t have their footing. Mining is risky and many new companies don’t make it into the market.
For the more experienced investor
There are also Silver EFTs and Silver IRAs that could be a good option for certain investors. Silver Futures are something more experienced investors tend to invest in. They can be complicated for new investors, but I thought I should mention them in case you wanted to explore more complicated investment opportunities. For more information on investment options for the experienced investor, click here.
Why should you invest in silver?
- You’re looking to diversify your portfolio and reduce your investment risk
- You want to hedge against stocks or other markets
- You’re looking for a high return
- You’re looking to add commodity investment into your portfolio
When’s the right time to buy or invest?
That’s a really difficult question to answer. There’s no cashflow in silver to help you see market trends, so you’re sort of going by your best guess. If you notice supply is low but demand is high for silver, as in there’s a shortage, then you’ll probably see an increased cost. But if you suddenly see that silver mining companies are booming, then that could indicate that you’re in the right window. Unfortunately, this part is a guessing game.
Don’t mistake it for gold
A lot of people think gold is the best thing to invest in but that’s not always the case. Gold is far pricier than silver so it can be hard for new investors to get into it. That’s what makes silver the perfect steppingstone for those wishing to get into commodity investing.
Unlike gold, it’s extremely versatile in the industrial industry. That means that it can be used for a variety of different investment opportunities, but this has a few downsides that gold doesn’t. Silver is susceptible to recessions and technology shifts. This means that if theirs ever a decline in industrial growth, the price of silver can decrease. It can be unpredictable at times for this reason.
Gold is less volatile than silver because its price doesn’t fluctuate with the industrial market. Despite the risks, you have a good chance of seeing a higher percentage gain in silver because you can purchase more for your money. There have been several occasions where silver has outperformed gold in markets.
While this all makes a gold sound like the better option, this isn’t necessarily true. If you have a lot of money to use in your investment then, yeah, maybe gold could be an interesting option to pursue. However, most of us don’t have the money it would take to invest in gold and that’s okay.
You can save money by investing in silver. You can see how the market swings and get a feel for your new investment. This is a great way for you to dip your toe into the precious metal industry without breaking the bank.
Just because gold is more expensive and appears more desirable than silver, doesn’t mean it is. Its versatility allows it to be something that has great potential to grow. While it isn’t as safe as gold perse, it’s so much easier to get into. With some practice, you can navigate those peaks and valleys.
Check your dealers for authenticity
Like I’ve already said, scammers are everywhere. They’re looking for new ways to prey on unsuspecting people and take their money. Don’t let that be you. Take your time, and research everything before you even decide to invest in gold. Then research some more when it comes to choosing a dealer. Ask for references, reviews, licensing, and experience. Don’t let yourself be fooled.
Silver gives new investors the opportunity to get into precious metals without breaking the bank. While it’s a volatile market and isn’t as steady s gold, there’s a higher chance of return. If you’re a newbie investor looking o get into precious metals and risk it for high return rates, then Silver might be the perfect commodity to invest in.