Beginner's Guide To Silver Investing
So, why invest in silver and not gold? Good Question. Nothing is really wrong with gold or other precious metals at all.
Because it is more expensive, gold is a very compact "store" of wealth. I mean, you could have the entire value of your house, simply stored at the bottom of your sock drawer, or better yet, a small floor safe.
Silver retains its value as a store of wealth too, and is still pretty compact, so you don't have to have a warehouse to store it in.
Silver has been called the "poor man's gold" for centuries. This was primarily because it was easier to purchase in smaller quantities, yet still provided a solid, stable currency base. The common phrase "to make change" probably originates from the fact that silver was used to "make change" for gold - in other words, you changed one metal for the same value of another metal.
Silver, in fact, was the standard used for most currencies up until about 150-200 years ago…That's a really long time when you consider that goes back all the way to Ancient Greece! Silver has been the "store of wealth" for massive empires and was the money of choice for merchants around the world.
Getting Started As A Silver Investor
Generally, silver is easier to get started with as an investment. This stems from the lower cost of entry (you can get started with literally just a few dollars).
Moreover, silver has been somewhat overlooked as a modern investment and store of wealth for quite a long time. People tend to focus on gold or other precious metals. Meanwhile, silver stays steady and true. Sure, the price of silver moves with the markets, along with gold and other precious metals, but because it is less expensive, the smaller movements can amount to strong percentage gains.
Many people don't know how well silver has done as an investment over the past few years. Since 2001, silver has seen an increase in value of around 400%! Of course, gold has increased as well, but not as much as silver has. Because of this historical trend, many people feel that silver is the best possible precious metal to invest in.
Because silver is less expensive, you as an investor can see faster and more dramatic increases. If heavy investment hitters like Warren Buffet buy silver to hedge against inflation, then why wouldn't you follow suit. You don't have to invest millions and you can get the same benefits from buying smaller quantities of silver bullion or silver coins.
It takes more money up front to get started with gold. And for you to make some impressive gains on your investment, gold would have to go up to a few thousand dollars an ounce. While this makes gold nice to get later, it makes it unattractive for a starter investment.
So for beginners, it's best to set gold on the back burner for a while. Instead focus on silver bullion to store your wealth and protect your assets against the rising tide of inflation.