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Step 1
In the 1960's our government phased out silver as money. Now our monetary system is purely a "fiat currency" which means that it is worth in theory at least what the government decides it is worth and that the government can make more of it at the stroke of a pen.
Silver and gold are considered a safe haven during inflationary periods such as we are having now.
There are a couple of ways you can add silver to your portfolio.
This first is to buy shares of physical silver through an exchange traded fund such as iShares Silver Trust. You can buy one share or a hundred, symbol SLV, through a discount broker and also in our Roth or Traditional IRA's. Your share of silver sits in a vault somewhere. -
Step 2
For those not comfortable with letting someone else hold their silver you can buy silver bullion outright from companies such as the American Precious Metals Exchange or APMEX. Shipping will eat up some of your investment on smaller orders but if you order larger quantities the flat rate shipping is a bargain. You can buy old US coins, which are up to 90% silver for a price close to the spot value of silver.
You can also buy APMEX or other manufacturers .999 silver bars and rounds (silver dollar size) for slightly more. -
Step 3
Other ways of buying silver are "junk" silver which may be sterling silver medallions, commemorative coins, etc. This can be a value but also more difficult to sell. Bags of silver coins and rolls as well as ten ounce bars are easy sell back to companies such as APMEX.
Silver is a good investment because it has value as an industrial metal as well as a precious metal. Silver is used in the production of film, x-ray film, mirrors, electronics, solder and more and the physical supply of silver left in the ground will only last around forty years at current mining rates according to figures from the US Geological Society.
Comments
August12 said
on 2/28/2009 Thanks! I've been looking to learn more about investing in silver.