While the price of silver at any given time impacts its value as an investment, silver in general has some pros relative to other investments, reports MoneyWeek. Silver is especially volatile, which means it has the potential for fast, strong returns, or fast and sharp declines.
A person can invest in silver by buying coins and bars, investing in exchange-traded funds, purchasing stock in mining companies or participating in the futures market. Investors can also invest in streamline companies, which are firms that transform lead into gold or silver.
Buying into a precious metal exchange-traded fund (ETF) is typically the easiest way to invest in silver for most individuals. Investors have a choice among three categories: silver futures, physically-backed and mining ETFs. ETF shares are available through online brokerages and offer a high degree
Both physical silver and shares in silver funds have positives as investments, although they are not as safe as government-backed savings vehicles, according to Investopedia. Certain factors erode the value of physical silver, but silver funds have better performance records.
According to Bankrate, there are two ways in which an investor can purchase silver stock. The stock can be purchased either by buying into an exchange traded fund (ETF) or by purchasing stock in a silver mine. Neither method gives an investor physical ownership of the actual metal itself, but will a
According to Bankrate, silver should not necessarily be considered a stable investment. Investors in silver can purchase the metal itself or purchase financial securities that move with the price of silver. Prospective investors should undertake either approach with caution and should research their
One of the main reasons investing money is important is that it helps to create more money. As opposed to just saving money in a bank account, investing money involves choosing to use that money to buy interest or stock in order to earn a return on the money.
A good investment manages risk by buying low and timing the market, states MarketWatch. A good investment is not the product, which can change with time, but the process of identifying the risk and managing it.
Silver is a better investment than gold because it is less expensive than gold, has greater production and has more earning potential, according to Ben Kramer-Miller of The Cheatsheet. Silver and gold are both smart investments because they're protected against inflation and economic disruption.
While many factors determine if an investment is good or bad, gold, silver and other precious metals are too volatile for most investors, particularly retirees, according to AARP. It is an emotional form of money, but it does not produce anything.