While the price of silver is generally stable in March, the best month to buy is June, followed by October. Silver is, without a doubt, one of the most difficult commodities to invest in. It's hard to know when to buy and when to sell. Most importantly, silver is not the type of investment that provides a reliable revaluation of capital or even income such as interest or dividends.
Precious metals, such as silver, have long been an alternative to traditional investments, such as stocks and bonds. As with gold, you'll notice that silver isn't usually close to returning to its previous year's price (although there were certainly years when the price of silver fell below its initial 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), although it's better as a short-term bet than as a long-term hold, due to the fund's structure.
While it tends to work well when stocks fall, silver's long-term outlook doesn't fit well with long-term investment. No matter what happens, 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. If you choose to invest in silver coins or ingots, transaction fees can be high from 5% to 10%, not uncommon.
Then began the second major price rally, which confirmed that silver was a legitimate investment for the crisis. As a result, 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. 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, unlike a quality business. 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.