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Silver Investing - Getting Started


If you have some money to invest, but you're not comfortable putting it in the stock market right now, you should consider investing in a precious metal like silver. Since the price ratio of silver to gold is near a historic low right now, it's a good time to look at silver investing, and getting started is easier than ever.

There are basically three ways to get started investing in silver: buying bullion, buying jewelry, and investing in securities.

Bullion

Like gold, silver is available in 99.9 percent pure coins and bars. The US Government issues pure silver coins that have face values (such as $10 or $20) so they could be used as currency, even if the price of silver dropped to a low level. Silver bullion is also cast into solid bars that range in weight from 1 ounce to over 100 ounces. The bad news is that these end up being quite heavy if they are used to invest large sums of money, but the good news is that the weight makes them hard to steal. And of course, a safe deposit box at your local bank is also a good option.

Jewelry

Investing money in silver jewelry has the added benefit that you get to enjoy the piece, and wear it, while you are investing. The disadvantage is that you can only fit so much silver, and thus monetary value, in a wearable piece of jewelry. If you go for an antique or a unique piece of custom silver jewelry, you are also adding the value of the craftsmanship and artistry. This can often cause a piece to increase in value more than the silver content itself, and can ensure that the value of the piece holds up even if the price of silver drops.

Securities

If you are looking to invest a large sum of money, a silver-backed security might be the way to go. Most brokerages offer mutual funds that are tied to the value of silver by investing in bullion, silver futures, or shares of silver mining companies. An example of a silver-backed mutual fund is the World Precious Minerals fund from Fidelity.

Another investment vehicle is the ETF (Exchange Traded Fund), a security that was invented in 2002. In an ETF, you invest directly in a quantity of silver bullion, which is stored in a secure location and insured by the fund. ETFs are also available for gold and platinum. One example of a popular ETF is the Silver Trust fund from iShares.








About the Author

Tom Webster is a researcher and copywriter who writes for several jewelry blogs, including Buying Silver Jewelry.