In today's economic climate, investing in precious metals makes sense. More and more investors are looking at buying silver, and there are several ways to accomplish this. Investing in gold and silver is an ideal way to both diversify an investment portfolio and to hedge against adverse conditions in the market.
While the silver market isn't nearly as large as the market for gold investing, it's an affordable investment that provides many protections as well as healthy returns. In fact, silver has seen double-digit returns in the last seven out of ten years, and 2016 is expected show more promising numbers.
Silver is not only a sound investment, but precious metal products are also being used as intergenerational gifts to pass along wealth within families, conveying true value with excellent growth potential.
While many investors view precious metal investing as intimidating, it is actually quite straightforward in its application. Here are several tips on getting started and in particular on buying silver today.
Options for Buying Silver
When you're interested in buying silver, you have quite a few options. Here are the most common ways to buy silver:
- Silver Coins - Silver coins range from investor-grade bullion coins to collector numismatics and junk coins. The premium paid will depend on the sort of coins you choose.
- Silver Bars - Silver bars are available for purchase in several types and weights.
- Paper Silver - If you don't want to own a physical product, you can invest in stocks, silver exchange-traded funds (ETFs), and futures contracts.
Beware of Fake Silver Products
As the precious metals markets have become hotter, the scammers have come out of the woodwork, and many counterfeit silver products have flooded the market. When purchasing online, only buy from reputable dealers that you have thoroughly researched. If you are buying silver from a local dealer, there are various methods that you can use to test authenticity. The best rule of thumb is that if the deal is too good, there is probably cause for suspicion.
Understand the Shipping Trap
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
If you are buying silver in coins or bars and doing so online, shipping charges will become an issue. It's key that you take these costs into account as you comparison shop, for seemingly low prices can go through the roof once extravagant shipping charges are added to the final number.
Storing Your Silver
If you purchased gold coins or gold bars, you have the peace of mind knowing that you've made an investment in a physical product. However, the logistics of safely and securely storing your silver has now become a factor. While many private firms and bullion dealers may offer you storage in their vaults, use caution with these sorts of arrangements as your holdings could be at risk. If you must store offsite, look for an independent depository that is reputable and backed by a substantial insurance policy.
Increasing Your Silver Holdings
Money Morning Chief Investment Strategist Keith Fitz-Gerald recommends a 1:10 ratio between precious metals and conventional bond investments. He also advises that buying silver and gold isn't a buy and store activity, as markets continually shift. Another recommendation is to re-assess your position at least annually so that you can ensure that your portfolio remains balanced.
Now that you're ready to get started buying silver, get some additional information now and download our report: The Essential Guide to Buying Gold & Silver.
Follow Money Morning on Facebook and Twitter.