Most in the precious metals industry are aware that Gold has done pretty well as an investment since 2001. In fact, it gained 143% in six short years. But it still doesn’t hold its shine against silver.
The “white” metal has jumped an outstanding 169% in the same time. If you haven’t considered silver as an investment, consider that it’s beaten Nestle, Exxon, Walgreen and even Microsoft — combined.
Had you invested in silver in 2001, you’d be sitting on a proverbial “gold mine.” Just a $5,000 investment would have yielded you $12,150. But silver’s gains are hardly over…
Right now, silver’s supply is dwindling while its demand is increasing at record rates (China’s silver supply, for example, is depleted). The following are a few options you may want to consider in regards to investing in silver.
Option 1 is investing in silver mining companies, such as Silver Wheaton (AMEX: SLW), Sterling Mining (Nasdaq: SRLM) and Mines Management (AMEX: MGN). According to a leading silver authority, Alex Williams, “Rarely does the value of a commodity and stock move in tandem.
In this case, though, silver’s increased value will bank well for Silver Wheaton. However, even if silver prices are soaring, one bad boardroom decision or a catastrophe such as a flood or explosion in the mine can topple the value of an individual stock. This extra element of uncertainty makes this option too risky for novice investors. “
Option 2 Silver coins are perhaps the version we’re most familiar with, and reasonably so. Coins are available to purchase in small and large quantities, and storage usually doesn’t take more than a safe in your home, if that. Austin Coin Collectors has a nice selection of new and vintage silver dollars made of 99.9% silver. Northwest Territorial Mint has silver coins and bars (up to 1000 ounces). Bags of 90% silver coins (pre 1965) are also available. And some silver coins can be worth more than their meltdown value because of their rarity, grade, quality and popularity. For example, the 1965 Silver Dime is worth upwards of $9,000. Its value isn’t affected by the price of silver. Common collector coins are.
Option 3 Perth Mint Certificates Program (PMCP). In doing so, your silver is stored with a government guarantee at the Perth Mint warehouse in Western Australia. And you’ll get a certificate that shows how much of the metal is being held for you. Your profits here are directly correlated to silver prices, but the mint does charge storage and insurance fees. Visit www.perthmint.com.au for more details.
Option 4 The best choice for silver investing is through an EverBank Metals Select Account, in which you can buy silver (and gold) at just 1% above the market price. In "unallocated" accounts, your purchased metal is pooled with that of other investors like you, which eliminates storage and maintenance costs. "Allocated" accounts allow you to purchase your own silver and gold bars and coins — with a custodial fee.
Both types of accounts can be set up 24/7 online by visiting www.everbank.com
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