Long term or short term?
Shoer term bullion is fine. But you can get screwed. Huge fluctuations up or down are rare. Silver is WAYYYYYY higher than it was 12-15 years ago, so don't expect it to go up much any time soon. The $50 was a fluke. Once in a generation kinda fluke.
If you want to long term invest into silver, here is how to do it. First of all be consistent! Secondly do NOT buy bullion or silver for its silver content.
A very good basic stratetgy is to buy x amount every month.
Say $100 a month is your budget.
Now you buy HIGH GRADE (do your home work) GRADED (by reputable company) key date silver coins in that $100 range at the lowest price.
I did this a few years ago and I got high grade (50 + up) key date coins for 70-80% of catalgoue value on
eBay. I lost about 90% of the auctions I bid on, but if you are consistent you will always score something.
Now put these coins away for 20-40 years.
Buy coins whose value is mostly COLLECTIBLE (numismatic) value and not the silver value.
If you stick with this for 10-30 years you will make out like a bandit. And no taxes need to be paid, until you sell them. But that's a luxury problem to have.
I read this concept in a book I once found. They even had a list of coins they suggested to buy. The book was about 10 years old, so I went in and looked at the current prices on ebay for those coins and many had double in value. Also keep in mind, there is book value and fair market value. Book value is ALWAYS higher than fair market, except in a fluke market.
I sold a lot of common silver and gold LITERALLY at the peak years ago. I sold Friday afternoon and Monday the markets started crashing.
While I was waiting for my measly stuff to be tallied up someone brought in Rolls and Rolls of silver eagles. They had not even cashed him out, when they already sold his rolls to 'investors' on the other end of the counter. These 'investors' lost 35% of their investment over the next 7 days.
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