HOW CAN WE INVEST IN SILVER?

How to invest in silver? It is almost impossible to know the reason why the price of silver goes up or down, at least for those who invest, but we can analyze patterns, know where we are at the current moment and what to expect.

Silver in the market has enormous volatility, this is the opposite of what the investor might expect, but nobody wants stability when investing, because the profits would be few or none.

The abrupt changes of rises and falls of silver since the year 2000, is not bad in itself, in fact, for the speculation of financial assets it is something desirable, this is one reason why a speculative investment in the future focuses on the silver.

A lot of money goes to “paper” silver precisely because of its volatility, this metal is strong in both ups and downs, making it possible to earn money in the future, both up and down gold ira companies reviews.

IT IS TRULY PROFITABLE TO INVEST IN SILVER

When you want to invest in the future, your greatest interest will be the volatility of the product, not that it is a stable asset. When you speculate on the price of an asset, you expect it to be changeable in the future, and this is exactly what happens with the silver.

An investment that reports profits in hours, of course, is better than in days or weeks, if we open being in a position, and in two hours we close with a profit of 2 or 3%, we have achieved the best investment, that it is only achieved with volatile assets.

The more speculative money enters an asset, it also makes it more volatile, for example, in October 2003 silver was trading at $5 an ounce, and five months later, in March 2004, it was trading at $7.60 an ounce, it can be said that it is a considerable rise in a very short time.

By April 2004 it went down again to 5 dollars an ounce, for the month of August 2005 it made a huge rise, from 6.75 to 14.53, by May 2006, in less than a year, it went down again to 9 dollars per ounce, so, as you can see, even if it goes down, it always represents a profit.

Despite the volatility, is silver a good investment? Although it is not feasible to use silver bullion or coins directly as a form of payment, it can be converted into paper money, but selling this asset in haste is a problem for those who invest and want to obtain the maximum profit.

An ounce of silver will continue to have value, many agree on that, precious metals in general help you protect your money regardless of the country, because it has a spot price, which is interchangeable anywhere in the world.

In banks, exchange houses or pawnshops, silver ends up being an extremely liquid instrument, which can be immediately exchanged for cash.

INDICATIVES THAT MAKE YOU THINK THAT INVESTING IN SILVER IS A GOOD OPTION

Well-known investor Warren Buffett sold most of his bank shares to invest in a mine in Canada, because the printing of paper money dilutes buying power day by day.

By October 2008, the ounce of silver was at 9.58 dollars, from there, with its ups and downs, the rise begins that takes it, in April 2011, to 50 dollars an ounce, we see again this data of something more from $9 to $50 an ounce.

After 2011, it continues to decline, until it is currently rising again. In reality, this is not exactly an asset for nervous investors, since the price fluctuates, and fluctuates a lot.

Silver is an asset that can fall by more than 50%, and if an investor is concerned about this, they should know that an investment in silver for years is indicative of extremes, both rises and falls in market value that, if They know how to take advantage of it, it will be a great asset to generate very good profits .

It is necessary to be clear about how and when to sell, when we buy silver we have in hand a kind of insurance that can protect you against eventualities, if this is the case, it would not be sold at all, it would be kept safe, but this is not It happens if it is bought as an investment.

This strategy of buying silver to save in case of crises or emergencies is not so profitable, a valuable metal is not bought for this type of situation, for that there are insurance against risks that do not require so much money.

For 7 years, until 2020, the price of an ounce of silver has been oscillating in a range between 13 and 21 dollars, between falls and rebounds, in March 2020 there was a great fall, reaching 11 dollars an ounce, surely caused by the pandemic situation.

By August 2020, it goes back up to a very good $30 an ounce, $13 to $30 is a pretty powerful move, and perhaps unexpected at those levels.

HOW TO KNOW WHEN TO INVEST IN SILVER

You have to be cautious if it falls in the same range between 13 and 21 dollars, this would suggest that it is not a very good time to sell, if it is above those 21 dollars, then you have to wait for new increases, without a doubt.

Silver is a much cheaper metal than gold, but it has many more uses, investing in silver is protecting yourself against inflation and any economic crisis, when the value of paper money falls, or what is the same, money is devalued, the value of silver and gold rises, because investors will buy these precious metals in order to safeguard some of their capital.

When this situation occurs, there is an increase in the demand for silver, and the more demand, the price will rise, and unlike gold, silver has a much more diversified use.

Silver is an essential metal for technology, almost all electronics used today have some of this metal, the sector is growing, so silver will always be necessary for its production, this may mean that its value goes up without the need for a recession or economic crisis.

Another use of silver in the industry is solar panels, although it is new to the market, this type of product has a lot of potential, and its demand is expected to grow.

Electric cars have components with silver, these vehicles can become popular in a short time, and this industry is booming and growing, since there are very good expectations for this sector.

These are very good reasons why silver is increasingly attractive to investors, they are compelling reasons why some prefer to invest in silver instead of gold.

This means that silver is not only a hedge against inflation, it also generates long-term income from its growth, due to its use in high-demand sectors.

HOW CAN I INVEST IN SILVER?

Buying physical silver is always an option available to anyone, the positive thing about this purchase of physical silver is that you can keep it, and something tangible is a physical asset that is in the hands of the person who buys it.

Buying silver, in coins or small bars, is instant money when you want to change it, but buying physical silver also has some negative points.

A negative point would be the lack of liquidity, if there is a lot of demand and the price falls, it will be paid at a lower price than the real one, and the other negative point would be the security and protection of the coin or ingot that you have bought, you should find a place safe because it represents an object of value.

Another way of investing in silver will be through the stock market, in ETFs, or listed investment funds, or in shares of silver mining companies, a point in favor of this type of investment is liquidity, the shares are of quick sale and withdrawal of money too, or if you wish, reinvest the profits.

Another positive factor of investing in silver through shares is the lower risk of loss or theft, it is a digital good, but it is not something that can be taken anywhere and changed, everything will depend on the fluctuations of the exchange market to see your investment back in your hands.

The stock market is a sure thing, but many people like to have this metal physically, it must be taken into account that the liquidity of this type of investment in shares is very important in terms of safety and profits, being able to visualize how it moves the value of your stock and decide when to sell.

To invest in shares it is better to look for companies that have the acronym (SLV), shares of this type have an estimated value of 25 dollars and are rising considerably in recent months, a good option is Pan American Silver Corp. , with an estimate of $34 per share, its value track record is high.

There is also the Wheaton Precious Metals Corp., this company has a much higher Market Cap, and its value is estimated at approximately 50 dollars, there are several prices, it is not necessary to choose the highest to invest.

ARE CURRENT PRICES GOOD FOR INVESTING IN SILVER?

The mining companies are currently at their highest values, and they benefit from an increase in the value of silver, because they, who are the ones who mine that metal, manage to sell it at a better price.

There are those who think, when asked what moment we are currently in regarding this metal, if it is time to buy or sell, the answer is to wait, there is uncertainty, and an asset is not bought when it is falling at its lowest levels, because it is impossible to know how much the slump limit is.

When it is on the downside, a bounce is not in sight, so it might be worth waiting a little longer to buy, of course, this is just an approach, not a recommendation.

There are always buying opportunities, there is no need to be in a hurry when it comes to investments, waiting weeks, even months, to find out what the next move will be, seems to be the premise.

Another valid opinion is that the best time to invest in metals is when the economy is good, because the world economy today is a bit unstable, when economies are growing and inflation rates are low, that is when these metals are cheaper.

The truth is that the economies of several countries can worsen even more and, therefore, these precious metals, including silver, can continue to rise in price, coupled with the demand for silver in the technology sector, increases its value.

Perhaps the current price of silver is not very attractive for purchase, but whoever wants to risk buying at high prices should take into account that it will be a long-term investment, it is not immediate to see profits when done this way. .

A very clear advantage when you want to invest in a precious metal such as silver is that you can start with very little money. Buying just one ounce will not require more pocket volume and may represent the beginning of future savings.

Paper money is not safe at all, while silver as an investment metal can be. In countries where you can save in local currency, it will be very useful to make a section to buy coins or silver bars.

Silver may be an undervalued asset, it is a scarce and finite metal, so there is a certainty of its upward trend in terms of its future value, depending on the type of investor, as already mentioned, it has a lot of volatility, more than gold, and likely to stay that way, is an advantage for anyone who wants to make a profit in a short time, two to five years, maybe less.