Given these times of financial uncertainty, many investors have started to re-evaluate the markets and investing in general. One reason is that it is difficult, even with all of the market indicators, to predict future values for anything from stocks and complex papers to commodities — especially if the market reflects extreme volatility and the commodity is a precious metal such as silver. As it stands right now, it is a good time to look into investing in precious metals. Although most tend to focus on gold, it is also wise to look at its younger brother, silver.
Investing in silver is a good way to make money. But like any investment, there are no guarantees. One needs to know and understand what the silver market is all about before getting involved. One can invest in silver in several ways: through silver mining companies, silver ETFs, silver futures, silver bullion or silver coins. Bullion or coins are the best and easiest way to get started since you do not have to purchase 1,000 ounces in a futures contract that carries a lot of risk.
One good thing about silver now is that prior to the panic started under the Bush administration, it used to take around 5 ounces of silver or more to equal one ounce of gold compared to today’s market. This makes it an affordable option when compared to gold. This means that as gold goes up in value, buying silver now could mean a handsome profit since it sells now for about $28 an ounce and may rise to near $40 an ounce by next year based on the rate at which gold is rising. Or approximately more than a 30 percent return on the dollar in profit.
In addition, although the silver market has not been rising as it has in other countries such as India, buying now may be wise and in front of the investment trend.
In summary, investing is risky, but an investor can maximize potential in respect to profits and returns if he or she evaluates all investment options, including silver. –torrance stephens, ph.d.
The opinions expressed in this article are solely those of the writer and are not an endorsement of any financial product or investment strategy.
