Silver is an excellent precious metal to invest in as a source of profit, and as a hedge against inflation. At the same time, it can be quite volatile so you need to be careful when investing in silver. These silver investment tips should give you a headstart when it comes to dabbling in this popular metal.
- Don’t leverage or sell other investments for silver – unless you have a crystal, or you have money to burn then don’t leverage yourself or sell other investments or property to buy silver. Remember that it is a volatile metal, and in all honesty you can lose it all easier than you can make it. Stories are circulating of people selling even their houses to buy silver. If you are inclined to do this then ring your psychiatrist immediately.
- Balance physical with ‘digital’ silver investment – one of the great things about silver is that it comes in conveniently denominated bullion. Therefore, in the event of a currency collapse silver coins may be more ‘usable’ than gold ones. At the same time it is much harder to trade physical metal for a quick profit or to stop losses. Therefore it is important to have both physical and digitally tradeable silver in your portfolio.
- Never underestimate the volatility of silver – we have mentioned it before, but it pays to be mentioned again. Silver is a hugely volatile metal, and it can be prone to huge price increases that are only matched by equally dramatic falls in value. If you are the kind of person who is terrified of excessive volatility then we would advise against excessive silver holding. However, in the long run the trend does seem to be that silver will increase in value as inflation becomes a concern.