Your Questions About How To Invest In Silver

Maria asks…

Would it be smart for a 17 year old to invest in silver ETF’s, if so, what’s a good amount of shares to buy?

I have around $1,500-$2000 that i’d like to invest. I’ve been looking into putting it into silver ETF’s because of how terrible the USD is doing. Would it be smart for me to do this. If so how many shares should I buy? Should I go for short term or long term? What fees do I have to pay? And any other information I should know would be great!

John answers:

If you are going to go with silver (which isn’t a bad idea at all) why not go with physical silver. If you are in California make sure you buy more than 1000 $ worth at a time so you can avoid sales tax. , .25 to .50 over spot price is acceptable. Either way silver (or precious metals in general) is a good hedging tool against the USD’s inflation. Also look into Swedish bonds. It might not be the best idea to put all your money into one investment. You should take $1,000 and put it towards a precious metals commodity (such as silver) and invest the other $1,000 into a renewable energy company (look for one that has a governemnt contract or something substantial) because we should see a solid industry grow over the next few years.

Ruth asks…

should i invest in silver and when should i do it?

i was looking to invest in silver. should i buy actual physical silver or should i buy notes instead. i would much rather buy the actual thing. when should i buy it? how can i make max profit? please if some one can provide me the correct info if you can leave me your email so we can talk back and forth i would much appreciate it tnx.

John answers:

Well tnx what an ideal question. To answer your question whether you should buy or invest in physical silver my answer would be a resounding YES and by the ounce only if you can afford the output minimum of 2,500.00 (USD). The time is and always is now. While you’re pondering over it decide what type of initial items are you looking for, old or new Liberties or Eagles. One most important step is research and asking questions and deciding whether you want be a collector or investor. Numismatists are in for the long haul while the quick buck investor is looking to capitalize and maximize his/her investment options. While this may be advantageous, it’s not the norm in this field of interest. I strongly suggest that you obtain a few books on the art of the deal. Coiin shops or libraries are the first place to go to familiarize yourself with various coins dated from the 16th-18th century. When you make up your mind as to what you’re looking to start your portfolio with, you can make calls or trips to coin dealers who may be willing to guide you further or contact the NCGS/PCGS societies. Sorry, I cannot offer you any Email addresses. Cyaaa!

Jenny asks…

How to Invest in Silver?

I live in Guatemala and apparently there are no bullion vendors :S, I’ve found some guatemalan silver coins used as currency in the 1920’s on the net at about US$10 for 1.66 grams (described as 0.7200 silver?), the other option is silver jewlery? or maybe ship in coins from ebay or something? stocks? I have around $700 to invest. Any help would be greatly appreciated! 🙂

John answers:

You should familiarize yourself with exchange traded funds (ETFs). They are a good way to get exposure to commodities, currencies, equity sectors, etc. Kind of like mutual funds except you can trade them all day long (not just once a day like mutual funds).

IShares Silver Trust is probably the most liquid silver ETF. It’s ticker is SLV on the NY stock exchanged. FYI i am not advocating buying or selling this thing – but it’s out there and beats going to a “bullion vendor” – i’d like to see that!

Daniel asks…

How to invest in silver first time?

John answers:

Through ETF but not all amount invest every month regularly

Chris asks…

can someone explain to me how to invest in silver?

Someone told me if i were to buy silver bullion and wanted to sell it back i would have to mark up the price and the buyer would buy at a discount but i dont quite understand this. can someone explain it to me?
im basically trying to find out how much money i would lose if i were selling silver back
and would i also get taxed if i ever sold my silver for a profit?

John answers:

It depends upon where and with who you buy and sell from. Standard precious metal dealers will typically charge a bit of a premium on their bullion (a price above market rate), plus shipping and handling fees. If there is a metals auction in your area, you can buy at auction, though sales tax could apply there. You can also buy and sell silver bullion on eBay – but you will need to watch your bids as they can easily get well above market price, and shipping charges may apply.

If you sell your silver back to a dealer, they will want to buy it back from you at a discount to the market price – they are after all in the business to make money. You can attempt to sell it directly to investors at a local auction (though commission charges will apply) or through eBay (again, commission will apply). It really depends who you sell it to. Dealers and scrappers will want a discount from the spot rate, investors will pay closer to the actual spot rate.

Profit or loss will depend upon the spot rate at the time of purchase and sell. If silver has gone up enough to more than cover the premium, initial sales tax paid, shipping costs, then you will make a profit. If the spot rate has declined or not increased enough to cover your other costs, then you will have a loss.

Just like buying and selling any other product, you will have to pay taxes on your gains. Speak to your tax professional for the correct tax treatment of your gains from silver.

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