How to make money by investing in silver

How to make money by investing in silver

Silver and other precious metals such as gold now offer much promise to investors due to uncertainty in the global markets and the devaluation of the currencies. The Eurozone crisis and political uncertainty accompanied by budget gridlock in the US have eroded confidence in the stock markets and people are looking for more solid investments. Amongst these, silver now offers the best prospects for many investors thanks to its volatility and the recent price rally which has seen it outperform gold and made it a top choice amongst many investors. There are several ways in which you can invest and accumulate wealth with silver. The first option involves investing in the Exchange Traded Funds or ETF’s. You can also invest in the silver market through silver futures, in silver coins and e-silver.

Accumulating wealth through the silver exchange traded funds or ETFs
Exchange traded funds or ETF’s provide a way to own silver inside the banking system and is usually called paper silver. So what does investing in ETF entail? Silver ETF is simply an investment fund which tracks the movement of the price of silver but you can purchase it as a silver stock. Purchasing silver ETF is like purchasing securities in the stock exchanges and you will be offered a certificate that is backed with silver. Some of them are backed by actual silver while others are simply paper silver and will be subject to the uncertainties of the stock markets. Apart from silver ETF’s, investors can also pump their money into the stocks of some of the global mining companies.

Investing in silver futures
Futures are simply contracts that you enter with futures traders with the promise to purchase an asset if it reaches a certain price. The price is defined at the beginning of the contract and the investor can be in the money or out of the money depending on the direction of price movement. Due to the highly speculative nature of futures trading, investors can earn incredible amounts of profits when they are in the money or lose almost their entire investments when they are out of the money.

Buying silver coins and bars
This offers the most stable way to invest in silver. There are many places where you can purchase silver coins and bars at prevailing market rates so that you can horde them for a rainy day. For example, you can purchase silver bullion issued by government mints in jewelry shops, and from other precious metal dealers. A major issue that you are likely to face when you are investing in silver coins is that of storage.

Investments in e-silver
There are lots of online programs that now allow you to buy silver from the comfort of your laptop. The advantage with this is that you do not handle the silver at all and the merchant will do all the legwork for you including the storage of silver coins and bullions. Some of the most common platforms for trading in e-silver include SilverSaver.com and BullionVault.com. With prices of silver now depressed but expected to rise over the next decade, investing in silver can be one of the best and easiest ways to accumulate wealth.