Buying Silver Coins; A Great Way to Start Investing
Wait! I thought this
site was all about buying gold coins. Now we’re talking about buying silver
coins?
Buying silver coins is a great way to enter the precious
metals market. In this article we will
discuss the reasons why.
Price point
The cost of gold is almost $1,000.00 per ounce. An
equivalent amount of silver is less than $20.00 per ounce. That makes it much
easier to begin investing in precious metals.
If you don’t have a lot of cash to invest, you can still get
started by investing in silver. Once you have collected enough silver, you can
easily change it into gold. Most experts agree that you should have around 70%
of your portfolio in gold and 30% in silver.
Volatility
In addition to the cost, what are some other advantages of
investing in silver? Silver is less volatile than gold. That means that the
price does not fluctuate as much as gold. Recently I noticed a small decline in
the price of gold and silver. The gold dropped almost $10.00 per ounce where
the silver only dropped about 10¢
The thing to remember is that the market is always
fluctuating. It rises and falls constantly. Sometimes it’s up and sometimes
it’s down. But is always on an upward trend. So keep your eye on the market,
but don’t be concerned about the day to day fluctuations. Remember this is
meant as a long term investment and not as a short term gamble.
So the first step is to start buying silver coins as you can
afford them. This will allow you to start benefiting from investing in precious
metals while still not spending a lot of money. Once your investment grows as
you add to it, convert some of the silver to gold. You can start with something
like a 1/10 ounce gold coin which you can get for about $100.00 or so at
current prices. But I would still keep some of your portfolio in silver.
Yours in Investing,
Michael Blaes
PS. Please share your thoughts by commenting below
PPS. Watch for an article where I will discuss what kind of
silver coins you should start with if you are on a budget.
