Please keep in mind when you read this post that I do not earn any money from sharing this with you. I'm not asking for donations or promoting any product. I don't sell silver and couldn't care less if you adhere to my advise or not. Having said that..
There are many ways to invest in silver and some of the ways are complete rubbish.
Firstly I recommend not investing in anything you have no idea about... e.g. financial products and the like, if you aren't a trader or banker.
For example...
ETFs are a way of trading silver, however, given the fact that the amount of gold in financial products doesn't line up with the amount of gold in circulation, I wouldn't touch these products. If the economy crashes, so will your investment.
ETFs are also a composite and don't always reflect the performance of silver. Plus the dependance on the banking system gives you limited independence.
Mining stocks are another way to invest in silver, but if you invest in junior mining companies, you have to be sure that they can turn a profit, or are managed in such a way that they can withstand market fluctuations, poor market conditions and price manipulation. You could invest in more main stream companies, but just make sure they aren't pegged to the US dollar (for diversification). Stocks are more speculative, and so even if there is money to be made, there are also very high risks.
Buying physical silver.
Bullion is in my opinion the best way to invest. There is no numismatic issues and bullion (at least in Switzerland, comes sealed in plastic) so you get what you pay for. Unlike gold, silver is not VAT exempt. But because of demand/supply, gains with silver are more lucrative, gold is more established....
Coins are also good. However, only coins that have international recognition such as Silver Eagles e.t.c. The reason is, if you need to sell, you don't want to have to barter to prove that what you have is fine silver. Remember, investing in silver is a two way process... buying and selling.
Now silver, unlike gold tarnishes, but thats irrelevant dealers don't care. When you buy the coin, you pay the premium. They are going to melt the silver and sell it again (hence the non numismatic position above). In fact many dealers want coins that are "aged", it shows both authenticity and collector value.
There may be many of you who are wondering why this information is not common knowledge, but in fact it is. The US mint can't keep up with silver eagle demand. That in itself is a sign . But given everything that is happening in the US economy, it's only a question of time.
How long can the US FED print money to compensate for poor financial decisions and stagnating GDP? How long will other countries trade in US dollars? And given the current US shut down, do you really think things are going to get better?
