Getting Started with Silver

Beginner Tips

Written by Adam English
Posted October 11, 2013

Outsider Tip of the Week

5 Tips for Novice Silver Investors

1. Take a close look at the market before investing.
Investing in silver is different than investing in stocks and bonds. The underlying physical market is very different from the paper market, but the paper market manipulates prices for actual bullion. Get familiar with the many different ways that you can invest in silver... You can invest in silver mining companies, silver ETFs, silver futures, silver bullion, and silver coins. 

2. Verify information from other sources.
As with anything in the Internet age, there are many biased or incorrect sources of information out there. Try to get information from primary sources, or at least confirm information through another reputable source.

3. The sure-fire way to invest in silver without the worry is to invest in bullion or coins.
You can use ETFs, but the paper market in silver is manipulated by institutional investors and often diverges from the realities of the physical market. Options trading is complex and potentially dangerous for beginners.

4. Before you invest in silver, make sure you calculate how much you can invest, taking into consideration your IRA rollover funds, cash on hand, and other assets that you wish to turn into silver.
Be sure to keep your emergency fund mostly in cash for unforeseen expenses. You don't want to bite off (invest) more than you can chew (afford).

5. If you are looking to invest in silver coins and silver bars, be prepared to exhaustively search for sellers who are selling as close to the spot price of silver as possible.
You will need to pay a fee in addition to the spot price, otherwise businesses that sell silver coins couldn't exist. The more silver you are buying, the less percentage of fees you should be expected to pay.

 

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