Silver: A Golden Opportunity

A couple of months ago I seriously evaluated my financial situation for the first time in years. I have some things that I am saving for, but I was searching for a long term investment that made it difficult to turn it back into cash. After doing some research, I came across the precious metal, Silver. Having a price point that suited my financial standing by being significantly cheaper than gold made silver a much more attractive investment for myself. There are various reasons as to why many investors look to precious metals as a worthy, long-term investment, and my goal is to share with you some of the things that I have learned thus far.

Now, as you approach silver, you need to be clear on the two very different forms or ways to invest in this metal. The first form is to accumulate "bullion" or collect silver for the raw weight. This way of investing is fairly simple to explain. Silver (as most precious metals) is commonly sold in Troy Ounces, and the goal is to acquire as many ounces of silver as cheaply as possible. The second way to invest is to collect what are called Numismatic coins. This is a fancy term for specially minted coins that are either dated, specially marked, or both. The Numi-coins are highly collectible, but you can pay from a minimal to a significant premium for the special edition coins. Along the lines of the Numi-coins are "First Strike," "Early Release," and "Proof" coins. The one that deserves the most attention is the proof coin. When I first came across the higher premium versus a regular BU (Brilliant Uncirculated) coin, I was skeptical, but there is a significant amount of extra work that goes into the production of these coins. The variety of all these options makes the search for what you love and then the purchase itself a special journey.

Personally, I find myself collecting the Numi-coins, because most are dated and each one has a special design. These coins also have a tendency to increase by a specific amount every single year, and my goal is to complete as many 2018 collections as I can before the years end. Collecting the raw metal (which comes in both bar and coin form) to me is slightly boring, and I currently don't have the room to store heavy, massive bars safely. I also find that I get quite a bit of pleasure from seeing the various coins rather than a bar of plain silver. I will say, though, that collecting Numi-coins is a greater risk and more costly than bullion.

Aside from the many ways to collect and the wide array of places to buy silver from, there are just as many opinions and theories as to how and why you should begin investing in silver.

The more obvious of the theories is the hedging of your hard earned money in an investment that has been around before the dollar that was backed by it. The security of buying physical silver has been proven over hundreds of years, is supported by some of the largest companies in the nation, and is bought and stored by governments themselves. So, if large companies and even national governments are buying stock in physical silver, I believe that it would be wise to invest (at the very least) a small portion of your portfolio into it.

The next theory can be considered by some to be a little farfetched or unrealistic; it is, however, preparatory in nature. The idea that the US Dollar has a time limit before complete failure is nothing new. Ideas for stopping, deferring, or cushioning the devastation is where most of the debate lies. Gold and silver are considered by those that are certain of collapse to be the "go-to" form of currency when the fallout of the dollar becomes a reality. I tend to believe that the dollar is eventually going to collapse if certain measures are not put in place very soon. Inflation, taxation, and government spending have led the dollar down a path that is now looking very similar to most economically destitute nations. How Americans still believe that we are "above" this is beyond me. Yes, I bleed Red, White, and Blue, but I believe the train we are on has a very dishonest conductor—and our actions put them there. So the fear is that once the dollar collapses, silver and gold will once again become the primary method of wealth exchange. At first, natural goods will be exchanged, but money will eventually become king once again.

The choice is yours as to whatever you choose to do with your wealth and investments, but I think that having multiple ways to stash your money will be the most efficient and safe. I use silver stacking as a way to get my money out of my hands but also keep it out of the hands of others. If the trading price of silver (AKA spot price) does increase dramatically like it has twice before, the temptation will arise to sell it and make a real-time profit. I don't know if I will ever sell what I have or how long I will continue to invest. As for now, it seems to be a rock solid method to hedge my money for a relatively low price. Even if I don't do anything with it in my lifetime, it will always make a great heirloom for my family.