Even though silver prices have reached a 30-year high recently, it hasn't come close to increasing to its potential, and should outperform gold, even though its precious metal cousin receives far more financial media coverage than silver gets.
There are several reasons silver prices will continue to rise, and that includes industrial uses and its secondary value as a form of currency, and/or protection against inflation and the debasing of the U.S. dollar, or whatever particular currency you may use.
What makes this even more a surety today is the ongoing so-called quantitative easing by the Federal Reserve which always weakens the U.S. dollar, but helps the overall commodity market by increasing the price of the majority of them because they are, for the most part, traded in U.S. dollars. The weaker the dollar or currency, the higher commodity prices will increase.
Gold is the most important of the metals used as a hedge against inflation, but silver shouldn't be underestimated in that regard, as it should outperform gold as measured by percentages over the next year or two.
That isn't a poor reflection against gold, which should be part of everyone's investing portfolio at this time, but a reflection of silver lagging behind the move of gold and poised to soar to catch up, as it has been doing lately, with strong momentum.
Silver is primarily an industrial metal though, and it has so many uses it's difficult to go into all of them, or follow the variety of products it is used in.
One strength it has is its growing use in the medical field, which is a recession-proof industry, and holds demand in all types of economic conditions.
So if one part of the economy is suffering, we can be sure that around the world silver continues to generate demand on that fact alone.
This makes silver one of the best commodity investments at this time, because of its dual purpose and use, and it being depressed for some time and starting to get traction and regain momentum.
Silver isn't close to being played out yet, and will probably run along with its larger precious metal cousin, gold, until the commodity bull market runs its course, which is still years away.
That doesn't mean there won't be corrections. There always is. But over time silver will remain one of the top investment performers, and prices will continue to soar for quite a long time into the future.
Now is the time to invest in silver, as the precious metal is poised to break out at any time. This week silver is trading at $28.71, but many insiders say now is the time to invest in silver because it is expected to trade up to 150 percent higher by the year 2012.
The metal is worth the investment because of its high demand in industry. This precious metal has the highest level of electrical conductivity of any element, and is needed for manufacturing of items like solar panels and industrial components.
Right now prices are increasing overseas, which is another sign that it is not too late to invest. Historically, the latest trends hit the United States last, so this is yet another sign that it is not too late to begin investing.
But what does all of this mean, and what should an investor do with silver? While prices are still low, an investor should make the metal at least 10 percent of a portfolio. Broken down, that should be approximately three percent for physical acquisition, five percent for exchange-traded funds and stocks and two percent for options and futures. Buy bullion at reputable firms and either hold it personally or have a trusted warehouse hold it for you. Find an exchange-traded fund or stock to buy into as well. Finally, invest in silver futures with care for a leveraged bet on prices.
Take a chance and begin to invest in silver, in what will eventually become a highly-traded commodity. Get involved with silver trading while the time is right, and reap the rewards later.
When buying silver as a hedge against inflation, it's important to know the top gold and silver dealers online. In order to avoid getting ripped off, take my advice on these gold and silver dealers because I have dealt with most of them.
It is extremely important to note that when buying gold and silver as an investment, you only buy for the metal content. You do not want to purchase numismatic or rare coins because many of them carry a high premium over the spot price.
Since you are an investor of gold and silver, you will want to get as much metal as possible for the lowest price. A good thing to remember is to only buy bullion or gold and silver bullion coins.
Many coin dealers will try to sell you the rare and graded coins because they make huge premiums over the spot price. To avoid getting ripped off like I have been, buy only bullion coins and bars.
Now let's talk about the top places to buy gold and silver online.
Monex
Monex has one of the nicest and user friendliest websites for gold and silver. They have very descriptive videos of each metal you may be investing in. Monex really goes out of their way to be informational about the products you are buying. Monex has a good selection of metals to pick from, but their inventory of bullion is a little lacking. Monex does give a list price of each item they sell.
The prices at Monex are a little higher than other places, but they score a 10 on their website design. Overall, Monex is worth the time to check out, at least if it's only to take a look at the videos. You will learn a lot from the website alone, and you might just decide to go with Monex as your gold and silver dealer online.
eBay
eBay.com is a great place to buy your precious metals from. eBay has a huge marketplace for not only gold and silver, but practically anything you want to buy. The best thing about buying gold and silver coins on eBay is the gigantic selection.
You can find cheap deals if you shop around, and sometimes you can get silver coins for under spot price on eBay. I do use eBay to buy gold and silver, but for the most part their prices are a little more than I like to pay, unless you find a rare deal. Many times you can get free shipping on gold and silver coins if you choose the right seller.
Overall, eBay rates as a safe and viable choice to buy your gold and silver coins and bullion.
Bullion Direct
I have heard some good feedback about Bullion Direct, but I have never bought from them personally. Bullion direct has a descent inventory of metals, but their website is not as user friendly as Apmex or Monex.
You can direct your money into a Bullion Direct self directed IRA, but their prices on coins like the American Silver Eagle don't hold up against the Apmex prices. If you have an IRA with an approved IRA custodian, you can invest your tax-deferred funds into gold and silver coins and bullion.
You will actually hold the physical metals, but they will be either stored in Bullion Direct's vault or a company of their choosing to store your metals. An IRA through Bullion Direct is not a bad idea. It's not a bad idea to buy physical metals from Bullion Direct, but there are other alternatives that might be more beneficial to your wallet.
Goldline
Goldline has a nice website and some good inventory to choose from. Goldline's shipping and customer service ranks high in my opinion so it's a good place to start. Goldline, like Bullion Direct, offers a precious metals IRA.
The only problem I see is that they do not quote the prices on their website. Unlike Apmex or Bullion direct, their prices are hidden and it says "call to order". Glenn Beck from Fox News is a Goldline proponent and he advertises for them on his commercials sometimes. I like the fact that a familiar face is promoting the business because it makes me feel good about buying from them.
I seem to have gotten a good deal when buying from Goldline, but I'm just not crazy about the hidden price. Overall, I think Goldline is a stand up company and a good place to do business. You may want to call and get some price quotes before you commit to buying though.
Apmex
Apmex.com is by far my favorite place to purchase gold coins, silver coins, silver bullion, gold bullion, American gold eagles, and American Silver Eagles. Apmex has a large inventory of gold, silver, platinum, palladium, rare currencies, and precious metals IRA's.
Apmex has great prices, the cheapest I have found, and they ship within a week usually. Apmex is constantly having sales and marked down items. Apmex also has great packaging of your product. They go over and above to make sure your items. Don't get banged around.
Overall, Apmex has great price, super shipping, great discounts, and good customer service. I give Apmex.com an A+++.
