Your Questions About Investing In Silver

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Joseph asks…

Is investing in silver a good idea for a 15 year old?

financi4 answers:

Investing in silver is a good idea for anyone no matter what age. I can think of better things to do as a 15 year old though…
Any investing should start with research, and when you have finished researching, research again ! Silver is good at the moment along with copper. If you are after a small cap business Pinnacle Telecom and Provexis are 2 small companies ripe to bust. Their epic codes are PINN – PXS respectively on the London stock exchange.
If you want to trade, here is a good website I found a long time ago, it’s worth checking out.
Http://sharetradinglinks.co.uk/
Good luck.

Mark asks…

Newbie Investing In Silver?

Hi there. I am interested in gold & silver investing principally silver. I am a newbie in this area.

Can you all recommend me books to read up on this subject especially for newcomers? I also welcome e-books and video/DVD recommendations.

Thanks & have a great day!

financi4 answers:

Start off by watching these video clips. There is a lot to learn about. But you need to have the basics of economics and the history of money. Ive provided many links for you. I have othe rlinks for you as well. Email me for the rest as Im limited as to how many I can post in this answer.

Http://monex.com/why/silver_market.html

http://monex.com/expert/supply-demand-important.html

http://monex.com/expert/indispensable-metal.html

http://monex.com/expert/china-factor.html

http://monex.com/expert/declining-dollar.html

http://monex.com/expert/silver-bull-market.html

http://monex.com/expert/silver-now.html

Watch these two videos too
http://video.google.com/videoplay?docid=-8484911570371055528

http://video.google.com/videoplay?docid=7757684583209015812&q=+Evils+of+the+Federal+Reserve&ei=Id4MSO7CJp2mrALI99GwBA

Also read the following post and listen to the following radio shows at the end of this post to understand about gold and silver. I myself have been buying gold and silver for some time.

First off you need to understand that gold is not an investment. The best way to own gold is to buy and take physical delivery of the gold itself. Silver is also in the gold realm as well, so when talking about gold, silver is included.

It is always a good idea to own some gold and silver at all price levels. To truly understand gold and silver, and why you should own it you have to understand the economey and get the movie of life on the largest screen possible. I listen to the following radio broadcasts posted at the end of this post. You should too to fuly understand what is happening and the action you should take.

Gold is money and a store of value. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin striped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.

Gold can be bought in many forms. Coins are the best. I personally like the US coins in both the Gold Eagles and the pre 1933 US $20 gold peices. Gold Eagles are hard to find right now but $20 pre 1933 gold pieces are avalible from PTG at www.allamericangold.com . This is the company I use and I like them and their radio show that airs every weekday.

Once you have physical gold and silver then ETFs or stocks are fine but I strongly suggest in holding physical gold for long term value and storage.

Cons to owning gold is it is subject to short term market manipulation by the Federal Reserve and bullion banks. This can cause the short term price to be pushed down as is being done today. This is why the paper price on gold verses the physical price is not he same today. Paper price today is about $830 an ounce but the physical price is ranging between $900 to $1200 depending upon the product being bought.

Http://patriotarchives.blogspot.com/

Thomas asks…

Investing in Silver , what shares should I invest in on the LSE ?

financi4 answers:

Fresnillo.

Daniel asks…

Is investing in physical silver better then investing in SLV for example?

financi4 answers:

NOT really! Buying GLD or SLV is backed by physical silver, but you don’t have to hide it or protect it while you have it in your posession. BUT if you believe the econmomy will totally collapse, and our money will become useless do to hyper inflation, physical silver you can barter with is better to hold. The value of SLV and physical silver will be the same. When in doubt. Own both.

Chris asks…

Should I invest in a mutual fund or Silver Bullion?

I’m considering opening a Roth IRA and investing in some mutual funds (such as a Vanguard fund). However, I’ve also heard that investing in silver bullion now is a smart move, as it is projected that silver will slowly climb over time and that it is a “safe” investment.

Should I stick to one or the other? Or both?

financi4 answers:

Many people think about silver and gold as very solid investments by protecting people from inflation. However, it has been shown that gold and silver make lowsy long term investments. During times of volatility (like now or the last great depression), they tend to do well, but only if they were purchased prior to the volatility. Although Silver and Gold are rare and used to make jewlery, what can you actually do with it that is useful? Copper you can make wire. Iron you can produce cutlery, tools, buildings etc. Silver is a bit more useful than Gold, but when it comes down to it, not much. You may know about Switzerland and backing their currency with Gold and Silver. However, they have been slowly getting rid of it. Time has shown government bonds have produced better returns and preservation of capital (Miller et al.) .

Also you have to think about the individual costs. Silver and gold is heavy and so once you purchase it from a dealer, you’ve paid a lot in delivery fees, markups (by the bank, coin dealer, etc.), and other fees. Precious metal certificates purchased through financial institutions maybe another route, however they are still tacked with storage fees and management costs.

You may have a case with short term gain with Silver or Gold. If you want to invest in them, consider investing SOME of your money in an Precious Metal ETF (exchange traded fund). ETFs are like mutual funds, but they generally have less management fees, and are very liquid as they trade like stocks.Not only that, you will then be making money off the companies that mine silver and gold so you have access to cash flow from the sales and processing of Silver and Gold as well as metal price appreciation.

Definitely consider a wide range of funds. Prices are low now so if you don’t need the money soon, mutual funds are the way to go. The best thing to do though is talk to a financial advisor and see what kind of things work best for you based on your income, goals and retirement plans.

Good Luck!

Donald asks…

Is it still worth it to invest in silver and why?

With the economy going back up and the recession ending back in July of 2009 what’s the point in investing in silver? For it to go up past $18 dollars spot the economy has to go down like it did in 2008 when the bailout for gm happened. But, now what the point in investing in it now?

financi4 answers:

First, recession or not, the increase in the federal debt to twice its current level will reduce the value of the dollar. If you have a 1000 dollars today, it may have the buying power of 100 dollars in ten years. Or another way, it may take a wheelbarrow full to buy a car for instance. The more money is printed without backing, the less value it has.

That is why silver (and gold) are good investments. They are real, tangible wealth. If the dollar collapses, you still have real money, not a piece of paper backed by nothing.

What’s even better is “junk silver” or common date silver U.S. Coins. These are coins minted before 1965 which contain 90% real silver. What’s more, a 1957 silver quarter will always be worth .25 and will be accepted anywhere even if silver drops to a $1.00 an ounce.

My own opinion is that silver and gold will only go higher unless we reign in this deficit spending and further erosion of the U.S. Dollar.

I hope this helps,

George asks…

Is it too late to invest money in SILVER?

Right now the price of SILVER is hovering at around $17-$18 per ounce. I hear mixed things about investing in SILVER. Some say it is a great investment because there is a shortage and people are buying it like crazy. However, I’ve also heard that it is over priced and people are pushing SILVER so that they could make a profit.

What do you think about investing in SILVER at this time? Is it too late?

financi4 answers:

It depends on what you want.

In my opinion comodities (precious metals, oil etc) are a long term investment. And in the long term they will never go down because there is a finite amount of it. So whether you buy it at $17 or $25 per ounce it will be more than that in 5 years.

If you are looking to catch the wave and jump on what is booming before it drops again, I can think of a lot better than silver. Check out the futures market & be sure to stay on top of it or you will be very poor very fast.

Paul asks…

silver investing, best method?

Is bullion silver a worthwhile investment? Are bulk “junk” silver coins better, I’ve read a few things that say yes as they could be used as legal tender? Lastly, I found a site Monex (dot) com, that sells silver bullion, rounds and “junk”, are they a good company?

I would rather have metal in hand than stock certificates.

Thank You
** Is there a better (cheaper) way of obtaining silver than through Monex?

financi4 answers:

The silver coins would be the better investment if you actually have them in hand. They can be used as legal tender especially when the world economy crashes and anarchy is the rule of the land. But remember, the banks will collapse so putting them in a safe deposit box will make them inaccessible. Invest in a Glock or a slightly used AK 47 so you can safely keep them in your closet next to the MRE’s

William asks…

what is the difference between silver coins and silver bullion coins?

im new into investing into silver and was wondering what the difference is i recently ordered some silver eagles and silver eagles bullion, and a couple one ounce bars. what the difference and is it better to invest in the bars?

financi4 answers:

“Precious metals in bulk form are known as bullion and are traded on commodity markets. Bullion metals may be cast into ingots or minted into coins. The defining attribute of bullion is that it is valued by its mass and purity rather than by a face value as money.”

“Silver coins have become popular with collectors due to their relative affordability, and, unlike most gold and platinum issues which are valued based upon the markets, silver issues are more often valued as collectables, far higher than their actual bullion value.”

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