Do you want to start making money through silver investing? Silver is one of the oldest investments in the world, acting as a way of storing wealth for millennia. Today, it’s no longer used as a currency but traded as a commodity. Silver is a popular investment that can protect your portfolio from turbulence on the stock market and provide a solid foundation for any retirement savings plan. But there are a few simple rules to making silver investing work for your portfolio.
#1 Start Small.
With a lower entry point than gold, which is presently hovering above $1,200 per ounce, anyone can start investing in silver right away. The price of 1 oz. of silver has fluctuated between $15-18 over the course of 2017, meaning physical silver bullion is well within the reach of small investors. Larger investors may run into trouble finding a place to store all of their silver, but solutions like allocated storage from dealers like Silver Gold Bull are the safest ways to store large amounts of silver. If you’re just starting out, a safe in your home is a practical storage solution.
#2 Use Dollar Cost Averaging.
Dollar cost averaging is a strategy where you make same-dollar purchases of silver at regular times, i.e. buying $100 of silver once a month. The strategy is to accumulate silver savings and turns drops in price into opportunities rather than losses. The gradual accumulation of silver averages out the highs and lows of a commodity known for rapid fluctuation. One of the keys to successfully investing in precious metals is to use it to preserve your wealth over the long-term and that means ignoring the day-to-day ups and downs. Dollar cost averaging takes the risk of a silver purchase and averages it out over the long term.
#3 Keep Your Costs Down.
When you buy physical silver bullion you have to go through a gold and silver dealer. You can buy silver online from outlets like Silver Gold Bull and it’s important that you use a dealer with low premiums on bullion. The dealer premium is the price you pay above spot and you can keep those premiums down by buying large quantities of silver and looking for dealers with lower premiums. A fair gold and silver dealer will keep your costs down, improving the ROI of your silver investments. Dealers like Silver Gold Bull can also give you price alerts so that you know when the price is right to buy or sell your silver, and their large inventory means they can quickly fulfill orders.
#4 Keep Your Portfolio Around 10-20 Percent.
Most investors agree that gold and silver bullion should take up about 10 to 20 percent of your portfolio, depending on the stock market. The reason why so many people invest in silver is to hedge against the stock market and preserve their wealth against inflation. Investment experts typically suggest keeping about 10 to 20 percent of your portfolio in precious metals while leaving the rest open for high-growth investments.
With these simple rules, you can make silver investing work for you.