Investing in Precious Metals to Protect your Wealth

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There has been a lot in the media lately about silver investing. It has a relatively low price and a good potential for growth. Buyers are interested in investing in precious metals to convert their volatile cash into a stable asset. Silver is highly valuable and has been used as a currency type. Now is a good time to invest in silver, but you need to learn about precious metals investment first.

Silver – Just the Facts
Silver is known as a limited commodity. This means that the earth no longer produces new silver, as it does gold. There will certainly come a day when there is simply no more silver to extract from the earth.

Silver is used for many diverse industrial purposes, and investing in precious metals with dual purposes is wise. When there is no more silver available in the ground, the prices will skyrocket. Prices for silver are low today, but they are virtually guaranteed to go up in the long term.

Only oil is a more useful commodity than silver. In the last 30 years, we’ve used more silver than we’ve mined. A silver shortage will be a financial bonus for people who hold silver already.

The Silver Market Today
Today, most mined silver is utilized for industrial processes. It is instrumental in the manufacture of many things, from electronics to photograph development to household appliances. This makes it a diverse choice when you’re investing in precious metals.

Of course, silver is also used in the making of fine jewelry. That is the second most common use for silver. The smallest silver use is investing. That means that this is a good time to invest in silver. It will make you more money if you buy before many other people realize that the silver shortage is coming. They will then buy up more, bumping the price up in the process.

The people who choose silver now are doing it for two reasons. One is to be used as a long-term investment. Its value will certainly grow over the next few decades. The other use for investing in precious metals is as an inflation hedge.

Worldwide, governments are printing money, backed by nothing. This is causing inflation. Silver values are steady, and silver can be used for exchange that is not affected by inflation.

Comparing the Silver and Gold Markets
The current silver market is a good deal smaller than the gold market, in supply as well as demand. Gold is trending higher because more people are buying it right now. Due to the relatively small size of the silver market, when you’re investing in precious metals, just one large investor can influence the entire market.

This has actually happened a few times, already. Most recently, the Morgan Stanley Company has increased their holdings in silver. Since supply is short, and industrial demand is still high, that buy-up has caused silver to be less available for other potential investors.

The buy-up also drove the price up, to more than double its standing just several years ago. Thanks to the Morgan Stanley buy, prices of silver have remained steady for the last year. However, they could easily fluctuate again if this company sold their silver to release it into the market. Lower short-term prices will get you better deals when you’re investing in precious metals.

Silver Investing 101
Silver investing may be a bit overwhelming for new buyers. Be sure that you can keep your investment worth and not lose it. Ideally, you’ll want to profit. You can actually do that, even in the short term with high prices. You just need to watch the market daily and make trades when they will benefit you. Silver is more often used as a long-term investment, since, in the long run, prices will only increase.

Beginners at investing in precious metals may wish to choose buying bullion or coins, but as you gain experience, you can also invest in silver futures, silver company stocks and the ETF silver market. Silver futures are the riskiest, so check with a trusted financial advisor before you go beyond simply buying bullion.