Your Questions About How To Invest In Silver

Ruth asks…

How is investing in silver profitable?

As I understand it, Bob buys silver and sells it when the silver exceeds the cost he bought it at.
That’s the main problem I’m having trouble with, I can’t believe that Bob could just buy silver at a low rate and then when the silver increases in price, have a line of buyers waiting for just this moment to purchase really expensive silver so Bob could make a profit.

Or I’m taking this the wrong way, maybe the correct way to invest in silver is to use as a more reliably form of spending money?

John answers:

Don’t get the cause and effect reversed. The buyers do not magically appear because Bob offers his silver at a higher price; the price gets higher because there are buyers who want silver badly enough to buy it at a higher price. Bob merely steps in at the right time to sell. Bob doesn’t buy silver at a lower price whenever he wants to, he makes his purchases at times when the prices are low.

There will always be buyers and sellers because there will always be people (miners, refiners) who have silver to sell and people (jewelers, industrial manufacturers, minters, speculators) who need or want silver. Bob doesn’t cause the tides to rise and fall, he just waits for the moments when they do rise and fall.

Linda asks…

Where can I buy and sell silver in singapore?

Hi I recently going into investing into silver but don really know where can I buy pure 999 silver in singapore and if the time is right where can I sell my silver into?

John answers:

Here is a list of a whole bunch of dealers of that commodity in Singapore:

http://www.eguide.com.sg/Products/Silver-Dealers
http://www.goldtraderasia.com/
http://royalsmithbullion.com/

Maria asks…

How can i invest in commodities?

Hi, i want to invest in gold, silver, crude oil, natural gas, copper. Which are the best etfs or etn that track the spot prices of them?

John answers:

GLD
SLV
USO or OIL
UNG

Copper is going to be illiquid compared to the others.

There are also energy funds, metals funds, etc. There is no direct substitute for futures prices. USO closed at 38.87, OIL at 25.66, while the /CL futures closed at 108.60, for example. But the charts look about the same, with similar highs and lows and trends.

Nancy asks…

How can I start investing in silver?

Im 15 years old and have been putting alot of my money in the bank. But I feel like I’m losing alot of due to inflation. A dollar now will be worth more than a dollar in 2020. I just want to put some of my money $20-$100 into silver just to kinda get into it. I know its a very small amount but I just want to try it out. Is it a good investment to protect against inflation? If it is, where can I buy small denominations of silver for what they’re worth that I could maybe sell in the future? Where can I get silver (preferably online)? And where would I then be able to sell it in the future without losing money? Please educate me
on how this all works. Thank you

John answers:

There are no guarantees. Silver could go down another $5/oz. It has already been falling for two years.

So you’re going to pick a bottom here? Best to wait until the downtrend is reversed with upward prices.

Http://www.apmex.com/category/503/silver

Building an emergency fund is a good idea, and silver ounces are fun to have around and play with; more fun than most investments. Just buy a few and if price goes down, buy a few more. All of your money should not be in silver, however.

And then comes the doomsday people that want so badly to predict the future but don’t have a pot to piss in. Beware of people that claim they “know” everything about world supply and what people have in their vaults.

“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, 6th century BC

But during insane times, it does make sense to be more prudent.

Donna asks…

Is it illegal to corner the silver market like the Hunt brothers did?

If I win the lotto, would it be illegal for me to use that money to invest in all the silver I can purchase with that money? Were the Hunt brother ever convicted?

John answers:

No one really has the money to “corner” a market. Yes, the Hunts tried and accumulated vast holding in silver, but near the end on the money they had allotted to their project realized that what can they do with the silver since the markets were no longer available to them, they had to depend mostly on end users of the silver to un load what they have accumulated.
.
The Hunts tried to do something but it did not work all in their favor. Yes they made money but not what they had planned on making, also the Governement came along and took a piece of their profits

So when you hit the big one, let us know so some of us can take the other side of some your trades

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