An Investment In Silver Is A Golden Opportunity Right Now

Christopher F. Davis

Whether a third round of quantitative easing and European central bank bond buying actually happens is still in question, but both are becoming ever more likely as both high unemployment in the United States and the eurozone crisis persist. While it seems that many stocks in the S&P 500 have been pricing in possible stimulus, other asset classes such as gold, as measured by the (GLD) and (IAU), have yet to see such moves. In recent articles I have suggested that gold prices could have some tailwinds in the form of inflationary pressures and have recommended picking up the gold miners as a way to play it. Now that we are in a situation where the stock market has already begun aggressively pricing in more stimulus, I would like to highlight three ways to invest in silver given that I have stated that it could outperform gold in the next few months.

There are three ways investors can get exposure to silver and I recommend them all as buys right now at current prices. My top approach for silver exposure is purchasing physical silver bullion and coins, followed by purchasing shares of ETFs that track silver prices, and finally through the stock of the individual silver companies/miners.

Physical bullion or coins: This is the best way to invest in silver in my opinion. I encourage people to carry away as much as they can from local dealers while silver prices remain depressed at current levels. There are numerous dealers in most cities and on the Internet where you can buy silver bullion bars and/or coins. I not only consider physical silver as a wise investment given potential government stimulus, but I also consider it to be a form of insurance in case of a total meltdown of the fiat currencies and modern financial systems we have in the world today. If you decide to invest in physical silver assets do so only from a reputable dealer. This is especially important if you’re purchasing over the Internet, where you will want to look for a well established dealer with a long history and stability in the business. The only downside from Internet purchases is high shipping and insurance costs as well as the possibility of a required minimum purchase. Whenever possible, buy locally to avoid such excessive fees. Read More...

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