Silver is one of the most difficult commodities to invest in, as it's hard to know when to buy and when to sell. Precious metals, such as silver, have long been an alternative to traditional investments, such as stocks and bonds. As with gold, silver's price isn't usually close to returning to its previous year's price. When times get tough or the economy faces strong inflationary pressures, some investors turn to silver to hedge their bets or to invest more defensively.
Traders can also bet on the silver market through an ETF that holds futures contracts through ProShares Ultra Silver (AGQ).Silver is highly speculative and generally only rises when traditional investments, such as stocks and bonds, fall. If the price of silver goes up, you can make a profit with silver coins and ingots, but that's the only way to make money here, since the physical product doesn't produce cash flow. Billboards around the world began to appear with the Wall Street Silver logo (seen below), which was adapted from the original WSB character, but with silver hair. Investors like silver for many reasons, but many see it as a store of value in times of uncertainty, while others see silver and other precious metals, such as gold, as a hedge against inflation. It's important to keep your investment in silver at a low one-digit percentage of your total portfolio.
While adding silver to your portfolio may be a useful strategy for more advanced investors, beginners may benefit better if they create a complete portfolio comprised of the best investments. The best month to buy silver is June, followed by October. Transaction fees can be high from 5% to 10%, not uncommon. Demand for investment in silver is likely to exceed available supply in the coming decades. A silver exchange-traded fund (ETF) is a way of keeping silver ingots in and of itself, except that it is done through a fund.