Would it be worth it to invest in Silver right now? ?

Question

I see silver just came down and is slowly rising again. I have some extra cash sitting around I was saving for next spring for a project, but would it be worth it to invest that money in Silver? I mean the worst that could happen is I don't gain any value by next spring, but on the other hand, I may gain considerable value?

Am I right? I haven't really ever invested into Silver, just wondering.

I could put the money into Silver, and if silver rises a lot, I can pull it out right? Lil help like advice cool!

Answer 1

Silver, unlike gold is an industrial metal. Keep that in mind before investing.

Answer 2

Silver itself physically or mines...Would advise you to invest in mining stocks in general...All commodities/metals will be HOT for a number of years to come as our ability to get them from the ground and smelted/produced is diminishing--yet demand remains very high.  Suggest stock in miners over physical silver holdings.

Answer 3

Precious metals are generally not a great investment.

Answer 4

Another poster made a great point in that silver is an industrial metal.

Right now the world economy is taking a bit of a breather and most all of the materials/commodities have come down from their recent highs.

Will they drop further?  Nobody knows.  Can they drop further? h**l yes they can.  I would encourage you to go to www.monex.com and click on silver and look at the 5 year chart.  Silver went from $5 to nearly $21.  Oil has some serious substance behind its recent run up.  

It is getting expensive to find it and produce it.  Silver does not have this issue.  

Investing in anything runs the risk of losing part or all of your initial principal.  Do not be fooled in that thinking precious metals only go up in value.  People once thought the same thing about real estate.

Whatever it is that you do invest in, make sure that you know why that you are investing in it and how long that you plan on keeping it.

Good Luck!

Answer 5

I see that SLV, the silver ETF, is close to its average price in the last couple of years.  I guess in that sense silver figures to be a reasonable value right now.

But in a larger sense the whole premise of your question is wrong.  There is no magical support price that silver will always sell at.  SLV might be at $50 next spring, but it could also be at $5.  An investment that has lost almost 40% of its value in just a few months is more indicative of a bursting speculative bubble rather than a commodity that is poised to move higher.

If you buy silver now and it is selling for half its current price when you decide to sell, then you will have lost  half of your investment.  It's as simple as that.  I suggest that you not invest more money than you can afford to lose.