Should I buy silver now? If so, what form of silver should I buy?
Fundamentally, that depends on whether you own silver now. And if so, what percentage of your total net worth is comprised of silver.
There is no one right answer. It depends entirely on one’s own financial position. Also on one’s financial advisors. Some investment advisors and accountants are supportive of having a portion of one’s net worth in physical metals. Some are not.
If you have little or no position, I would suggest you consider buying. Begin slowly. The price will rise and there will be corrections as well. I would suggest you consider making metals (including gold) up to a fifth of your portfolio, 20%, depending on your unique situation. One prominent writer recommends one-third! I would not have suggested such a large percentage in the past, but the past now looks nothing like the present.
Think of silver as a replacement for dollars, just like gold. Both silver and gold are money – and have been through all of recorded history until 1933. Now they are beginning to be viewed as currency once again. You want to hold them both for protection and profit. Continue to accumulate gold and silver on a regular basis, just like dollar-cost averaging with other investments.
Gold is more stable. Silver is more volatile. Gold will appreciate steadily. Silver will most probably gain more than gold on a percentage basis. For a more stable portfolio, consider 70% gold, 30% silver. If you wish to be more aggressive, switch the percentages. Alternately, you could allocate 50/50 and do just fine.
In silver, begin by buying the lowest cost over spot price (referred to as ‘premium’) possible. Currently, that is pre-1965 U.S. silver dimes, quarters and half dollars.
Always hold your metals in your immediate or near-immediate possession. Exceptions include safe deposit boxes and approved, insured depositories. NEVER allow another organization to store your metal on your behalf unless it is an insured depository. It may well not be there.
You can also buy silver in your IRA or 401-k account. The process is very easy.
All Things Considered – John’s Commentary
Remember, silver will always be volatile. Just focus on the fundamentals of the worldwide marketplace and use any dips as buying opportunities. Until everyone you know owns physical silver, continue to buy.
Action to take: Continue to accumulate. Invest regularly. Buy more on major dips. Take your position as soon as you are comfortably able to do so.
Quote of the day: “Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” – Daniel Webster
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