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Silver Investing 101

Silver investing is not complicated, so we'll call this silver 101. The concept is simple, buy low and sell high, reap the reward of financial gain. Only if everything in life were this simple... Precious metals that are traded include silver, gold, platinum, and palladium.

They garner value thanks to a combination of rarity, demand, supply, and financial uncertainty. Gold, of course, is the most well known and desired of the precious metals. But it was silver that attracted me personally.


silver investing 101Silver has a low buy-in price. This is first and foremost the greatest asset of physical silver. Silver is not cheap, but compared to gold, the lower purchase price makes it much more attractive to the average investor.

Investment in physical gold can be quite a bit more expensive. Gold commands a much higher price per ounce, however, it may no longer be capable of the same profit percentage compared to silver.

Silver is rumored by coin collectors as the precious element most likely to "pop", meaning it could experience large value gains in a relatively short time period.

Unfortunately silver is considered volitile. I have learned that silver is widely used in industrial applications which makes it a consumable metal. Silver price seems to primarily follow industrial markets and hinges on the world's level of industrial activity.

Gold is also used at some level, in electronics and industry, but not in the same amount as silver.

Gold is respected more for it age old value against any paper currency anywhere in the world and much of it is still proudly displayed in jewelery.

You can always find chatter about Gold and its benefits and drawbacks in publications and news outlets like Forbes, CNBC, and other financial newsletters and magazines.

Silver investment is widely discussed as well. It is said that much of the world's silver is already located in the world's landfills, totally unretrievable and lost forever.

This is the concept that makes silver so attractive. The possible rarity or shortage of silver can alone drive up its price over time. The volatility in the pricing right now, is actually also being caused by industry as we see lagging industrial numbers in the world economy.

investing one oz silver
Investing in One Oz of Silver at a Time

The possibility that silver may eventually become somewhat rare for use in these industrial electronics makes silver prime for price progression. The old saying "you can't print more silver" has a special place in the hearts of anyone who has ever purchased silver bullion for an investment.

You begin to believe the day is coming when industry will begin to scratch their heads and say "where's the silver?"

silver bullion 101This excitement that goes with silver investing, is usually initiated by eager metals dealers.

They get you thinking that you may be onto something. "Silver is about to pop!". I have these words many times, from many metals and coin dealers.

The sales pitch I find most often is that silver lags too far behind gold pricing and it's about to play catch up any time now. It makes you think you need to drop everything and buy silver.

I know, because I have personally felt this way. You get this sense of urgency to sell your possessions and replace them with physical silver.

I don't don't actually recommend you do that, however I do recommend you keep reading. Many people are under the impression they can get rich with silver.

investing wealth small scale
Investing Wealth on a Small Scale

Read on and see what I think after buying an ounce here and an ounce there for a number of years now. I view my personal experience as a good example of what any small scale retail investor can expect if he or she were just getting started.

Read more of the fact and fiction of getting rich with silver.

See Also: Buying Silver Online | Silver Investing FAQ | Silver Investing 101 | Silver Investing by State | Retiring with Silver | Silver in a 401K Retirement Plan | Coins, Rounds, or Bars | Get Rich with Silver | One Oz Silver Rounds | Where to Buy Silver Safely | Physical Silver VS Paper Investments


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