In previous decades investing in silver meant you purchased and physically held the silver you had invested in. Silver bullion bars most commonly but otherwise silver coins or another form of this precious metal. Today the most popular way to invest in silver is with silver ETF. This is an exchange traded fund. It means you have an investment in the silver without actually physically possessing the silver. Obviously this is much more practical for today’s lifestyles and great to be included in your financial plan.
The silver is held by a company, perhaps not even in the same country as you. They hold the silver but you buy it when you buy the silver exchange traded fund. The success of your investment is solely based on the market value of the silver itself. For this reason you shouldn’t be too concerned about which company physically holds your silver. If the company is doing poorly it will have no reflect on your ETF.
Experts recommend that serious investors have a 10-15% investment rate of precious metals in their portfolio. Silver has outshone the success of gold in recent times as far as profitability. Experts have noted that the fluctuation of the value of gold is larger than that of silver, making it a good choice for your first time in this market. This could be due to its continuing success in several and diverse markets around the world. Highly prized in the jewelry, electronic, coin and water industries this precious metal shows no signs of becoming obsolete.
The most popular and well known of all the silver ETF’s is the iShares Silver Trust Fund (SLV). The silver is physically held in London and prices are based on the London Silver Fix Price. An ideal place to start that offers minimal volatility. However there is many to choose from – some of the more commonly used are: ProShares Ultra Silver ETF (AGQ), PowerShares DB Silver Fund (DBS) and COMEX Silver Bull Plus ETF (HZU-TSX).
Investing in a silver ETF is an exciting way to expand your portfolio in a relatively low risk environment. Owning some of the precious metals in the world has to be a little bit more exciting than stocks and bonds too!
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Investing In A Silver ETF by Steve