Which Investment Is For You?
After you and your financial advisor have decided that you should have a certain percent of your investment portfolio in silver, you should choose the silver investment vehicle that is in accord with your own preferences and investment philosophy.
As with any investment, you should judge the merits of your silver investments as they relate to your investment needs. To help you, we have included the following digest of some of the advantages and disadvantages of particular silver investments.
| Exchange - Traded Funds (ETFs) | |
| Advantages: For investors who seek exposure to the physical silver market, but have no desire to possess the metal or pay direct insurance, assay, and storage costs, ETFs offer an alternative. They have major exchange listings and trade like equities. Investors can buy shares in a trust that owns the silver bullion. | Disadvantages: Because the ETFs are created to reflect the price of the silver, the market price can be as unpredictable as the price of silver on any given trading day. |
| Silver Bullion Bars of Approved Refiners | |
| Advantages: Usually the least expensive Convertible into cash...Internationally negotiable...Price is widely quoted. | Disadvantages: Must be stored securely...Possible need for assay at time of sale...Yields no interest. |
| Silver Mining Stocks | |
| Advantages: Offers capital appreciation opportunities...Dependent on the company's management and operating strength...May yield a dividend. | Disadvantages: May require greater investment than small physical bullion purchases...Requires knowledge of equity market. |
| Silver Mutual Funds | |
| Advantages: Many mutual funds offer investment programs in silver and precious metals...Diversified holdings among dozens of companies. | Disadvantages: May require greater investment than small physical bullion purchases...Requires knowledge of equity market. |
| Silver Bullion Coins | |
| Advantages: Relatively inexpensive, some less than US$10.00...Small and easy to store...Instant convertibility into cash...Easy to transport...Internationally negotiable...Prices quoted widely. | Disadvantages: Must be stored securely...Yields no interest...Premium over bullion bar prices. |
| Silver Medallions | |
| Advantages: Prices can range from least expensive to most expensive...Small and easy to store...Easy to transport. | Disadvantages: Similar to coins, but not always easily convertible to cash unless they bear the mark of a reputable refiner. |
| Silver Certificates or Storage Accounts | |
| Advantages: High liquidity...But at competitive prices...No storage risk...No sales tax...Prices widely quoted...Invest by dollar amount. | Disadvantages: Several days' delay in delivery of silver...Silver not in physical possession of owner. |
| Silver Accumulation Plans | |
| Advantages: Invest as little as $100...Discounted commission rates...Highly liquid...No sales tax...Offers dollar cost averaging...No storage fees. | Disadvantages: Silver not in physical possession of owner although some firms will deliver the metal if requested. |
| Silver Futures Contracts | |
| Advantages: Speculative appeal...Leverage reduces capital tie-up...Liquidity...Contracts widely quoted...No storage risk. | Disadvantages: Many trading limitations...High risk factors...Unlimited loss potential...Requires market expertise. |
| Silver Options | |
| Advantages: Speculative appeal...Leverage reduces capital tie-up...No storage risk...clearly defined risk. | Disadvantages: Trading limitations...Highest risk...Less negotiable and less liquid...Investor must be willing to sustain the loss of their entire investment in a commodity option...High degree of knowledge required. |
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
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