Silver Riding on Gold

There is growing talk that silver will follow the coattails of gold. As the price of gold goes up, investor will look for another, cheaper option and that option could be silver. Take a look at this article to read more about silver prices.

I know personally I am a fan of silver and think investing in it offers the common investor a way into precious metals.

Time to Buy Silver....

Well maybe not right now as the spot price of silver today closed over $16 per troy ounce. This is up $4 in the last few months as silver has followed its' older brother gold, up, up and away. The question is should we be buying silver?

The answer to this conundrum is; drum roll, up to the individual buyer. My personal belief is to wait a few months and wait hopefully for the silver price correction. The problem with waiting is maybe the correction will never come and you are left on the sidelines. On the flip side, the purchase is made, the correction comes and almost instantly, the investment is down $5-8 dollars.

Regardless of the claims, nobody can predict when or if the correction is coming, so the advice I follow; look for bargains.

Like any other product, silver will be put on sale, by different dealers around the nation. So, search the Internet daily looking silver sales and those great silver coin offers.

One such place is APMEX.com. I am not endorsing any dealer, but APMEX has a very interesting collection of Mexican silver coins. I find these coins to be both valuable and historical.

The value comes in the silver bullion and the fact the coins are coming out of Mexico. Mexico is rich in history, with a long laundry list of Wild West type stories, making them a historian's dream.

Then of course there are the Silver American Eagle and Silver Maple Leaf, these coins currently hold one purpose; silver bullion. They remain easy to buy and trade with a world wide popularity. However, if a collector is interested in historical value, they should look at the Morgan and Peace Dollars. Both are a very popular coin and hold a rich historical value.

Regardless of when or what silver you decide to purchase, the main point is seriously considering moving into silver as the underlying indicators continue to point towards a sluggish economy, such as high unemployment and the continued struggles of the dollar. So, with that I say happy silver hunting and go out and find those bargains.

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.

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.

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.