Silver investment question

Hello,

I have been looking at the bullionvault silver website and I am interested in buying silver as somewhere else to keep my money instead of my credit union.

I want to keep around 25% or more of my savings each month in silver. Is this a wise idea? It would be for long term, ie 5 to 10 years. I could possibly need it quickly within the next year, but it seems fairly easy to sell and also safe.

I am a low income worker, so I would have to save to meet the minimum buying amount (which I cant find on the site at the moment).

As a low income worker (20k a year), is it worth me pursuing this? Or is this all wishful thinking?

Kai.

Hi there,

Before you go off investing in anything, I would suggest you start with developing a little financial plan for yourself. In general it is best to have built up ready savings to cover living expenses for a few months before you go investing money for the long term. Accordingly, I would suggest that your first objective should be to built up enough savings to cover say six months living expenses before you think about investing and during that period you use the time to educate yourself about investing.

When it comes to investing, I always recommend that if you need the money within the next 5 years, then cash is the only option. When you are investing money, you should always be in a position where time is your friend, meaning that if you were to buy silver tomorrow and the price was to drop, you should be able to wait until it goes up again rather than having to sell at a loss because you need the cash. Given your comment about perhaps needing the money in a year, then I would suggest that cash and not silver is the best option.

When it comes to financial risk, you should understand that no matter what you do, there is no way to totally avoid financial risks and that the best you can do is to diversify as a way of reducing that risk. When it comes to cash that means spreading your savings over a couple of institutions and when it comes to investing spreading your investment over a couple of asset classes such as equities, bonds, commodities (including precious metals) etc.

Given your comment about be on a low income, I would suggest that the best way for your to invest, when the time comes, is seek out an investment fund that covers a few asset classes, this will allow you to gain the necessary diversification even when investing in small amounts.

Good luck with that,

Jim.

Bullionvault have no minimum investment. However, there is a minimum storage fee per month.

You should also be very much aware that price of silver could fall as well as rise. Some forecasters are forecasting up to US$5O, whilst others are suggesting that price has peaked and could fall back to below $20 per ounce.

As in all investment decisions, do some research before get involved

Thank you for that informative post.

You are right, I think I will save my money into a deposit for a year or two, and after I will look into managed funds.

I picked silver over a managed fund because I know I would have the patience to weather any dips and also since it would be long term, I could take advantage and buy more on top of what I have instead of trying to sell.

Anyway, thank you for the reply. I posted that in the early hours of the morning and now im posting this in the morning looking up Rabo investment funds before having a coffee, bad idea!

Kai.

Ravima said:

Bullionvault have no minimum investment. However, there is a minimum storage fee per month.

You should also be very much aware that price of silver could fall as well as rise. Some forecasters are forecasting up to US$5O, whilst others are suggesting that price has peaked and could fall back to below $20 per ounce.

As in all investment decisions, do some research before get involved

Click to expand...

I would expect it to fall, Id buy even more after it did. Hopefully after peaking twice or more I would be able to sell at a tidy profit in a few years time.

Kai.