Invest in Silver!
Source: http://feeds.feedburner.com/~r/ContrarianProfits/~3/532659469/12977Posted on Thursday, February 5th, 2009 | In Market Commentary
“Silver has been a form of money and store of value for thousands of years.”
Not only can silver provide a hedge provide a hedge against inflation, it also helps you add asset allocation and diversification to your portfolio, owning silver is easy, convenient and affordable, and thanks to the US governments pro-inflation policies, it’s going to be much more valuable in the near future.
This from Investors Daily Edges’ Ted Peroulakis:
I’m bullish on precious metals in general and silver is a nice compliment to your gold holdings.
Now keep in mind that silver can be quite volatile as industrial demand fluctuates. Silver often tracks gold prices although the ratio can vary.
I suggest you hold silver in your portfolio and here are some common ways to invest in silver:
Buy Silver Bars
An established way of investing in silver is by purchasing actual bullion bars. Physical silver can be stored in your home safe or at a bank safety deposit box. You can even have a dealer store your silver for you.
Buy Silver Coins
Buying silver coins is another easy way of physically holding silver. For instance, you can just buy American Silver Eagle bullion coins or Canadian Silver Maple Leaf coins.
Buy Options and Futures Contracts on Silver
Silver options and futures, currently trade on a number of exchanges around the world. Using options and futures as an investment strategy is usually reserved for the more experienced investor because this type of trading is quite speculative. You could multiply your potential profit several fold, giving you huge leverage on silver by investing in options and futures.
Buy Silver Mining Companies
Many investors buy silver mining stocks. Silver mining companies are leveraged to the price of silver and since they have millions of ounces of silver, every time the price of silver goes up, the value of their reserves increases. As the price of silver rises, the stock price should rise along with it. Some investors prefer to diversify by investing in precious metal mining mutual funds.
Buy Silver Exchange-Traded Funds
Silver Exchange-Traded Funds represent a quick and easy way for an investor to invest in silver. ETFs are a liquid, cost effective and a secure way to invest in silver. My favorite is the iShares Silver Trust (SLV). I see tremendous upside with this silver investment.
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