Investing in Precious Metals Is a Steady Hedge against Inflation

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Investing in Precious Metals Is a Steady Hedge against Inflation 5.00/5 (100.00%) 4 votes

The stock market has been at record highs recently, but it’s due for an adjustment, and people are once again looking at investing in precious metals as a safer way to earn money on investments.

Investing in silver has been garnering some attention, since it has a relatively low price, a high potential for growth and it’s more stable than currency. Silver has been valuable for centuries, and has been used as currency itself. If you want to consider silver as an investment, there are certain things you should know, first.

Silver Facts
Silver, as a commodity, is limited. The earth produces gold in quantity, but the silver we have on earth now is all we will ever have. Sometime in the future, no more silver will be extractable from the earth and what we have in hand will be all there is. Even before that, investing in precious metals like silver can pay off handsomely. Silver is an industrial commodity, too.

Most mined silver today is used in industry. It is used in electronics and in some appliances. Of course, silver makes wonderful jewelry. Investing in silver is actually its smallest use, overall.

Investing in Silver
Today is a logical time to invest in silver, since the price is not too high and your investment will yield great value as time passes. People who buy silver today are using it for a long-term investment and to hedge against inflation.

Governments the world over are printing money, backed by nothing. The more money that is printed, the less it is worth. Silver holds its value and investing in precious metals like silver should pay off well.

Silver and Gold
The silver market is smaller today than the gold market, both in terms of supply and of demand. Gold is a hot investment right now, bringing high prices. Savvy investors know that silver may be a better investment, in the long run.

Silver Investing 101
Beginners sometimes have difficulty investing in precious metals like silver because many factors are involved. You’ll want to profit, certainly. Even at the somewhat high prices that silver commands today, you can still make money if you keep an eye on the market. Daily trades will bring in some money, but long-term investments will be more lucrative.

How to Invest in Silver
There are four ways you can invest in silver. They include purchasing coins and bullion, investing in ETF markets, buying silver futures and investing in the companies that mine silver. If you’re looking to the long term, Monex is one of the better companies from which to buy silver coins and bullion. They have been a trusted company for silver investors, and their fees are reasonable.

Investing in Silver Futures
Silver ETFs and stocks of silver companies are some of the most lucrative ways ofinvesting in precious metals. Beginners are best served by investing in silver companies and ETFs. The futures market itself is somewhat volatile and fast-paced. Beginners can lose a lot quickly if they’re not careful.

Silver ETFs
ETF stands for exchange traded funds. With these, you put your investment into silver funds and buy and sell when the market dictates. They are volatile, but they have the potential for high profits. There is less money required to get into ETFs as opposed to futures, so you’re less likely to lose a lot of money investing in precious metals in this way.

You can also buy stocks in silver companies themselves, or through a mutual fund that will spread your money out over more than one silver mining company. This means you won’t lose as much if one company’s share prices drop.

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