Silver

Silver is steady at 18 plus per ounce. It is trying to hit 19 which it should, but unlike gold the climb is often much slower. However, silver will reach 20 at some point. The reason continues to be the high price, the unstable dollar and economic plan that continues pushing the national deficit higher and higher.

Silver Going to $19?

All the talk has been gold, gold, gold in the mainstream media, but showing once again that most outlets are a step behind, silver is the big news currently. Gold's little brother is pressing $19 per troy ounce and is looking to establish a $17 floor.

The prudent move now is to hold gold and buy some silver. It remains off record highs and like gold, is benefiting from the great turmoil around the world. The economic problems appear to be ongoing, meaning more and more cash is flooding out of the traditional stocks and bonds and into commodities such as gold and silver.

As for silver options, they are just like gold, but instead of clicking the gold icon, hit the silver one. Switch American Gold Eagles for Silver Eagles. Look at ETF's focusing on silver and seek out companies mining silver. Now is the time to act, before like gold, silver becomes over-priced.

Using Silver to Protect Against Inflation

Silver is the common investor's gold. Unlike gold, it is cheap and available, but like gold, silver bullion is a great option for any investor. As the U.S. Dollar continues to face pressure from mass printing and scared investors, silver continues to grow as an inflation protector.

Inflation is the investors enemy and protector against is critical. Silver bullion is a great option for doing this. It has tangible value, it is easily purchased and relatively cheap. So start planning silver investing now.

Seek reliable, trustworthy dealer. There are many options for silver dealers around the nation and likely one near you. If not, do an Internet search and research the dealers found on Google. Talk to them about investment ideas and concerns over
inflation.

Take a percentage of money used for investing and funnel it into silver. Many financial gurus are now saying up to 20 percent of a portfolio should be in silver or gold.

Sit down with a financial adviser, educated in the commodity trade. This can be a challenge as many advisers will push towards the stock market, but in these troubled times, paper can become worthless overnight.

Start with the American Silver Eagle. It is a great looking coin and holds value well, making it a great starting point.

Protecting Against Inflation

Inflation, it is seemingly looming and investors everywhere are trying to protect against inflation. As the recession continues, the nation continues to print out money in hopes of paying off the deficit. This will eventually drive the value of the dollar down and inflation upward. There are ways to protect against this.

1.Look at investing into something called TIPS or Treasury Protected Securities. TIPS are adjusted to protect against inflation by using the Consumer Price Index (CPI), which signals the cost of living. This critical, protecting from prices raising faster than the interest on the investment.

2.get into I series saving bonds. The I series, like the TIPS were created to protect against inflation. They are compounded semiannually and come in $50, $100, $500, $1000, $5,000 and $10,000

3.3.Switch from individual stocks to ETF's. These are similar to stocks but are essentially a collection of stocks, bonds and other investment tools. They normally are based on one segment of the economy such as financial, commodities etc.


4.4. Gold, gold and more gold. Head straight for precious metals, because unlike paper money they have real value. Precious metal value is not based on government or the impressions investors may have of economy.

Buying American Gold and Silver Eagles

Gold and silver continue to be a smart play. As the monster of inflation lurks, gold and silver prices remain poised for a big jump. There is an old saying in gold and commodities, sell in May and walk away. But looking at current spot prices, which are down today, they have remained steady. Now does this mean the price will remain steady, no, of course it could.

So what does this mean? Take advantage and use the lower prices to pick up gold and silver bullion, specifically American Gold and Silver Eagles. Admittedly, I have not purchased either recently and the last time I checked the US Mint was not minting Gold Eagles. So the availability may be limited, but looking at a few sites such as APMEX
Gold Eagles can be purchased.

Personally, I love the Silver and Gold Eagle, mostly because their value is found in the bullion of the precious metal, over the trendy collectible coins. The price is set by the price of gold or silver. Yes, a gold coin from 1689 is a wonderful piece of history but it does hold a bullion value. The problem lies in the fact that collectible coins are trendy, which can artificially inflate the price and eventually burst.

I enjoy the safety of the Eagles, paying a lower price, but still getting the value of gold and silver. Use the Gold and Silver Eagles as the foundation and build from there.

Inflation Knocking at the Door. Gold and Silver Looking Better Each Day

The bond market is in panic and it is all because of one word; inflation. The reason for the panic is inflation. Higher inflation destroys the return on the bond, because the dollar is less valuable.

That's a very simplistic explanation, but cuts to the core of the situation. Bond investors see the risk of inflation growing the day and a government unwilling to control it, because doing so would to curb consumer spending, which would sour the perception of the economy.

As the minting presses roll out the dollar, the money floods the market, the value of the dollar will go down. This will sink the bond market as their potential return falls. This in turn limits the money available to the government, who it appears will simply print more money. The other option is a crushing blow to staggered housing market; raise rates to lure investors back into bonds. However, the increase in rates will stymie consumer spending, refinancing and mortages, not too mention the political ills of bad consumer spending reports.

It is a nasty cycle with every action causing a reaction and a perfect example why the concept of central economic planning is purely abstract.

So what does this all mean for the common investor? It means keep collecting the gold and silver, because with the meltdown in the bond market, all sectors are now unstable at best. The rush for gold and silver has only just begun.

Buying Silver

Let's face it, the economy is struggling and the dollar has been staggered, times are difficult. So what does this mean for the common gold investor? It means that gold and silver are becoming even more critical.

So many people still see gold and silver as an oddity, an option that should be left for graduation presents or baby gifts, but this is simply wrong. This false perception of gold and silver has been driven into the minds of the Americans for one purpose, Keynsian economics. FDR understood that for Keynesian economics to succeed people had to be taken off gold and silver, allowing the government the ability to control the value of the dollar.

Now seventy plus years later, that process has been completed at least for the masses. But what many fail to realize is the wealthy continue to invest and compile gold and silver. Savvy investors use gold and silver bullion to protect against inflation and they understand both will always hold a tangible value. The price will not controlled by printing presses and interest rates.

Back to the topic, buying silver bullion. Silver is the perfect hedge for the common investor.

Silver bullion is cheap, compared to gold and therefore can be easily massed. The spot price of silver has been around $12-15 for an ounce. This allows for most people to pick up large amounts of silver for a decent price.

Silver, if an economic crisis hits can easily be turned into goods. With a lower value, silver coins could purchase groceries, shoes and clothing. Unlike gold, silver's value translate into everyday use, making it a practical metal.

Finding silver to purchase is simple. There are so many forms that silver fits any investor's needs, including coins and bars. Most coins are one ounce and bars normally come in 5 and 10 troy ounces.

After deciding on what type of silver to purchase, find a respected dealer. This really isn't hard as many places, including banks deal in silver, especially the American Silver Eagle. Do a little research and test the dealer with a small purchase, testing their customer service and quality of the silver.