April 4, 2014 by Liberty
Gold and silver share a lot of similarities but they’re not quite the same investment. In response to my article on gold as an investment in 2014 this question was asked. It brings up one of the most common issues people have with gold investing.
What do you expect the same to happen with silver prices? I don’t really have the money for gold.
Silver is in a very similar situation as gold. While there is no particular reason to believe there will be a major rise this year, the bet is getting better every year. As long as all the major governments in the world are printing away the value of their money, commodities are going to be one of the safest places to keep your money.
In 2013 silver took a pretty hard hit. By the end of the year in dropped over 30%. It ended up with a path very similar to gold. So far in 2014, silver definitely isn’t leaving any investor feeling comfortable considering it’s volatility.
The price of silver in the long term perspective is very attractive. In 2014, I wouldn’t be counting on any major turnarounds. That being said, it might be a great year to get in before it becomes a bull market.
Not having money to invest fully in gold in a common problem for people. Silver is often considered the poor man’s gold. That might sound appropriate for you but just like anything, you get what you pay for.
Silver is volatile. If you’re not an experienced investor then this might just drive you nuts. While it may not be quite as scary as bitcoin, it’s still pretty bad. With gold you can expect a significantly smoother ride. If you have any doubts about your ability to hold your silver through a “crash” then it might be worth spending a little more money for gold.
Gold doesn’t have to be ridiculously expensive. You don’t need to buy a full ounce at a time. They typically go as low as 1/10 oz. If you can afford a couple hundred bucks then don’t let price point be the deciding factor.
Silver is definitely not a bad investment or currency but it’s not the go-to currency in a crisis. Silver isn’t stored in a country’s vault. Silver has a lot more uncertainty than gold. If you’re going for silver then know what you’re getting into. Don’t just buy it because it looks like your only option.