Let's start with the million dollar question. How can I make money? and Why should I buy Silver? Everyone has a job, or at least had a job. Everyone should think about their future. Whether you want a good nest egg for yourself, or your putting money away for your kids college fund. I like to think about all the different types of ways to invest My hard earned dollars. I had the typical 401K, when I lost my job I lost half of the 401K when I had to cash out. Sure I could of moved it, but like so many other Americans it was a hard time for me. So I cashed out to pay bills. That way I still had electric and still have my house.
Now that I am back to being a little financially stable. I started looking around at different ways to invest. But, Gold is just too expensive. I have seen every video on You tube. I have watched every news cast about gold and silver on every channel, public and cable. As I looked at Silver I saw a great opportunity. Silver is cash, it holds value and it's cheap. When I say cheap, I mean that the normal person working a minimum wage job can afford to purchase small amounts without breaking themselves. Thinking back to the 1940's when Gasoline was $2 to fill up your car. Today $2 won't even buy a gallon of gas. Well it will, if those $2 happen to be a Silver Dollars. So you still can fill up your car with $2 today. It's fiat cash that has went down, not your precious metals.
I want everyone to know that I buy physical silver. There is something about having your hands on the actual commodity. I strongly recommend the physical. I think if you want to invest, then invest in silver. Now, I want you to only purchase what you can afford. If you are buying too much and you end up selling quickly, then you are going to lose money. Try a little experiment, put a $20 bill in your top drawer alongside 1 OZ bar of Silver. See which one gets spent first. A good amount to save is usually 10 percent of your income. For every $100 dollars earned, spend $10 on silver. This is a slow process and will take time to build up your portfolio. When purchasing silver remember that the cost of silver goes down by quantity being purchased. For example buying 1 OZ bars may cost you up to $5 more than the spot price of silver. Spot price is what the actual silver is worth as a metal per weight. When buying a 10 OZ bar of silver, then your premium will be lower. As low as $.99 an OZ.
Another key issue I want to put out is that, this is an investment. Please don't think that you will buy 100 OZ's of silver this year and then next year you will be rich. It's like saving for your kids college, You don't wait until they are 17 and start saving. No, you start while they are in grade school, maybe even before school. This is why I like to stress that only spend what you can afford. Money you won't miss. Don't put your bill money or your mortgage in silver and hope next month I can cash it out. If you try that you will lose your butt. Right now silver is under $20 an OZ. This is a great time to buy. I just started stacking myself this year back in February when Silver was $28 an OZ. When silver dropped back in April, I didn't get worried, I bought more. I am 40 years old, I have a son that is 17. I am saving this silver for my nest egg. I don't plan on cashing out any of my silver for at least 20 years, and I plan on buying silver every month for the next 20 years.
What type of silver should I buy? This is just based on each individual. I personally like buying bars. Some people like buying rounds. Some even like buying nothing except coins. What is the best type depends on you. As you will get more for your coins when you sell them, but you will pay more for them as well. Also it depends a lot on where you plan on selling them. Your local pawn shop or jewelry shop will pay you only spot prices. They don't care if your selling them a 2002 Silver American Eagle or a Generic 1 OZ silver bar. To them 1 OZ of silver is 1 OZ of silver. With this being said then your best bet is to purchase cheap silver rounds or bars that don't have a high premium. This is what I like to do. It doesn't do you any good to talk to someone until your blue in the face to explain that you have a 1981 Engelhard silver bar that is worth 3 times the silver melt price. They just don't care. The only place to sell that bar would be online to a dealer or to a person who knows what that bar is really worth. With that being said you think about that on your purchase when buying silver. Also only buy silver from a reputable dealer. There are a lot of fakes out there being sold to people not knowing. So do you research about how to pick out fakes from real silver.
Another good silver stacking is coins. A lot of people know about this and it's getting harder to find, but any quarters, dimes and half dollars 1964 and earlier are made of 90% silver. This is known as junk silver. I myself have a jar full of these, and every time I get a new one it goes in the jar. On a side note, pennies 1982 and earlier are made of copper 95%. So have a jar for them as well.
The last thing about silver I want to say, is that it does have the potential to make you a lot of money. Some experts think in 10 years it could hit $1,000 an OZ, others say it should be $200 an OZ right now. To me I look at it like this. I put $1,000 into silver, then I should have that $1,000 safe. The more I put into silver the more I have later in life. I try to put $5,000 a year into silver. So in 20 years that's $100,000. And that is if Silver Never goes up at all. If silver doubles then so does my 100 Grand. You can do the same. Silver is a great opportunity for your future. The best part about it, is that you don't have to be rich to invest. If you don't have the money one month to purchase any silver, then buy next month. Because this is physical silver, not an IRA that says you must apply this amount of money or you get penalized. You can purchase any amount YOU WANT. So purchase today and watch your investment portfolio grow, and believe me it will. Some people collect baseball cards, I collect Silver Bars. And like a 401K you can always borrow against your silver. I have seen a man with a $1,000 55" TV get $75 at a pawn shop on loan. When I can take a 10 OZ bar and borrow $100 or sell it for $200 (In today's spot price). Silver holds Value, and that alone should show you "Why You Should Buy Silver!".
Gold-N-Scrap does not advocate or make any investment recommendation. The above article represent the author's own opinion only.