What Are 10 Key Rules to Follow when Investing in Silver?

 

Silver is one of the most reliable of the precious metals. It’s easy to obtain and affordable. Below, we discuss the top ten rules for investing in this particular precious metal.



1. Invest to Protect Yourself

You never know when the economy will take a nosedive. If the economy does go south, silver is an excellent hedge against inflation and recession. It’s also more practical for daily use than gold.

2. Start Small

Many investors make the mistake of investing too fast and too much. Start small with your silver investments and go from there. Consider working with an investment specialist if you’re not sure where to start. Also, avoid commemorative coins and jewelry. These items have very little resale value.

3. Consider Mining Shares

Once you get used to silver prices and how the market works, consider investing in silver mines. Doing so gives you more investment potential. Mine stocks are based on the market value of silver and other factors such as production and supply and demand.

4. Use Dollar-Cost Averaging to Your Advantage

With dollar-cost averaging, you calculate the average silver price over several months and use that amount to inform your investment strategy. Doing so gives you a chance to make wise investments at times when it’s good to buy and sell.

5. Be Careful with Dealers

Watch the deals you get from dealers. Low rates may sound good, but some dealers set prices too low and are unable to make deliveries. Instead, choose reliable dealers with fair markup rates. Check online reviews and avoid buying from online sources that aren’t reliable, such as some auction sites.

6. Know What’s Yours Is Yours

Silver can be stored at home in a safe place. However, the bulk of your silver should be stored at a precious metals storage facility. These places often have extra security and climate-controlled environments.

7. Don’t Overspeculate

A small portion of your investments can be speculative. This being said, all of your investments in silver should be based on actual data and not speculation.

8. Be an Informed Investor

Take time to learn more about the silver market. Doing so gives you an advantage over other sellers and buyers. It’s easy to learn with all of the online resources and what’s available at your local library.

9. Be Cautious with Collectibles

Rare coins are fine to have in your silver collection. They can be a nice addition, and they could even bring you a nice profit later on. However, when they’re considering buying silver coins instead of silver bullion, Scottsdale collectors should keep in mind such investments are for personal satisfaction mostly and not for investment purposes.

10. Remember the 10 Percent Rule

Silver is a good thing for your investment portfolio. However, there’s such a thing as too much of a good thing. The general rule of thumb to follow is that no more than 10 percent of your investments should be silver related.

 

Whether they’re looking for expert advice on investing in silver or they want to buy gold coins, Scottsdale residents should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today.

 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.