Silver Archives

Top Tips for Investing in Silver

It is a well-known fact that when  our nation’s economy weakens many start to lose trust in what would be called conventional forms of investing. During these times there is usually an accompanying spike in precious metal investing, particularly silver. Prized for millennia silver is beloved for its sheer beauty and also its physical properties that allow it to be made into a wide variety of different items. While we’re not espousing that investing in silver is the best it does offer an investor looking to diversify their portfolio the opportunity to do so at moderately low risk. With that in mind we put together a blog about the top silver investing tips. If you’re keen on putting silver’s precious patina into your portfolio then read on! Enjoy.

While not particularly complicated, any silver investment will certainly require a bit of research. When it comes to investing in silver there are several different ways to do so and one of the  tasks that your research should accomplish  is to show you what the best way is for your type of investing habits and portfolio.  That being said, make sure to take your time and compare investment methods so that your needs will be met.

One of the most popular ways to invest in silver is with silver bullion and it’s also one of the most convenient. Most bullion is almost 100% pure silver that has been formed into consistently sized, identical bars that are convenient to ship and/or store. As they are easily stackable taking inventory is also quite simple.

Silver bullion  bars also have an advantage in that they are not exclusive to a single demographic but rather are popular worldwide which means that trading in silver in this form is much easier  to do. Not only that but silver bullion  are normally marked with specific information about their origin and their purity, making bank deposits  efficient. For those reasons and several others investing in silver bullion  is a great choice.

Another popular silver investing choice is silver coins. Although the process involved here is a bit different, silver coins are nearly as profitable as bullion.  The distinct differences in the process however need to be considered before deciding on any silver coin investment.

Ironically, the type of silver coins that investors favor most are referred to as ‘ junk coins’  because, as collectibles, they have very little value. Because silver coins tend to lose content if they have been handled a lot and are worn down, their true value depends on their overall condition.

One of the best reasons for investing in silver coins is that they can be purchased in relatively small amounts, opening the door for new investors or investors with limited investment capital. Not only that but, since their  prices fluctuate regularly, they can sometimes be sold at a substantial profit.

We’ve taken a look at two of the most popular ways to invest in silver. As far as the advantages and disadvantages of investing in this precious metal there are several of both.

Advantages;

  • The demand for silver is rising in a large percentage of markets.
  • Silver is heavily used in the manufacture of automobiles, photovoltaic cells and several applications in the healthcare field.
  • Silver generally increases at a better rate than gold.

Disadvantages;

  • Unfortunately, the cost of silver is prohibitive for many new investors. This  makes it difficult to actually purchase enough to see a substantial future profit.
  • Silver  can be extremely volatile.
  • Drastic fluctuations in the price of silver are normal and quite frequent.

As we mentioned earlier we’re not saying that silver is one of the best investment opportunities only that it is one that  can be interesting and sometimes profitable. For someone with a nicely diversified portfolio it definitely should be taken into consideration.  As with any investment, do your research and purchase with caution. Good luck and we’ll see you back here soon.

Up 8.5% on The First Trading Day of 2013

What a day. The market reacted very positively to the cliff news and shot up a giant 308 points, but I wasn’t in to feel the full 308 points. That’s right, I sold out most of my positions today and clocked in an insane 8.5% in a single day.

I am currently about 72% in cash, and the rest is Silver, AMD, and a little in QQQ.

Where do I go from here?

I watch.

Trading stocks tends to be a “glass half full or half empty” type of situation. If the market shoots up another 200 points this week you can always view it negatively, but I view this situation as a win/win. Market goes up, I have potential shorting opportunities and if the Market goes down, I dodged a bullet.

Look.. I’m up 8.5% in a single day (maybe my best day since starting this blog), it’s hard to be upset even if I do miss out on another 8%. I’m happy on the sidelines for now. I personally see a correction back to the low 13,000 range within the next 12 weeks (hopefully much sooner), but who knows.

 

Been some movement in my account, I bought in after the dip and was lucky enough to pick up a quick 2.5% on Monday.

Moving into a fresh 2013 is exciting for me. My goals remain the same, 25% a year (9.31x for 10 years).

I’ve decided to no longer post exact dollar amounts of my portfolio balance for privacy, but I finished up 61% after commission for the year. This is well in excess of my 25% a year goal, and I would love to have a repeat.

I’m Long (64% invested)

Powershare QQQ Trust Series 1 (Symbol: QQQ)(25%)
That’s right. I’m 25% invested in Apple..errm…  I mean QQQ. QQQ is an ETF that holds major tech companies, and since it 16.31% Apple and Apple tends to be an industry leader, it’s kind of like investing Apple.  I think tech is oversold (for the most part), and I’m looking for a major bounce. [ Composition of QQQ found to the right ]

Silver (Symbol: SLV) (12%)
It’s always good to have some commodities in your portfolio, especially with inflation and instability. I have about 12% of my account in Silver. I’ve been in and out of Silver with some major success.

MET (Symbol: MET)(10%)
The option chains were just too cheap and I think this stock has some room to easily pop up $1.50 – $2.00. Hoping to grab a quick (within 3 months hopefully) 20% gain.

AMD (Symbol: AMD)  (6%) and Sprint (Symbol: S) (6%)
These are my hail marys. I have them both on Jan 2015 calls. I simply could not avoid such a good upside potential. I actually like AMD more than Sprint, and I’ve considered selling out of Sprint altogether (might on a small bounce).



GE (Symbol: GE) (5%)

Hoping GE crawls back up to $22+ range so I can get a few % return on my portfolio. Relevantly low downside, but also very limited upside. Hoping this stock was oversold a bit going into the end of the year.

 

 

How I Dodged the Silver Bullet (Symbol SLV)

A while back I was long on Silver (Symbol: SLV) for many reasons. Inflation scares, shaky markets, and diversity to name a few. Then suddenly I took a look at it versus the current market and thought “where can this even go from here?”

Are we going into a massive depression? Are we going back to a metal based pegged currency? I was bull on the market, so how could I continue to be bull on it’s counterpart indefinitely?

Already up a solid 55.0%, I decided it was time to sell. This might have been one of the luckiest sells. Not only did I sell before a downward movement, but I sold literally at the short-term peak.

And sure enough when Silver is falling, its usually because the indices are climbing.

I view silver as a semi-hedge against the market, and I’ll consider getting involved again if the market continues to rally and silver remains relatively stagnant.

Overall though, I’m very happy I got a little of the metal action, but I’m pretty bearish on the whole for gold and silver. I believe we are going through a lot of things with the economy which causes a bubble short-term, but I feel like we are more likely to see $1500 gold than $1900 gold (Currently $1700). One of the major reasons I decided silver over gold in the first place was that silver didn’t quite have the bubble that gold did at the time.

For now I’ll take it off the table and look for better investments.

 

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