Silver, or any precious metal, as an investment should be limited to no more than 5% of your total investment portfolio. If your total investments are worth 100k and you are adding to them at a rate of 500 a month, you should have no more than 5k in precious metals and be buying no more than $25 of it each month (5% of the $500).

AND....the rationale for it is to keep a small portion of your money protected against inflation or wild currency swings that can wreak havoc on stocks and devalue the dollar.

BUT...as a commodity to be traded, there's money to be made. The companies you see buying and selling gold and silver? They are not investors. They are traders. They buy it for less than what they know they can sell it for, over and over and over and over. They find people who are looking to sell and convince them that they can't pay full 'spot market' price, because they have to pay to have that silver or gold refined into pure silver or gold. Then they turn around and convince people who are looking to buy that they have to pay more than 'spot', because spot is the price quoted for huge contracts in the metals on the commodity market -which IS true, somewhat - not the price you can buy it for. Once you learn how and where to buy cheap and how and where to sell for more, it's definitely worth while. I know I can easily sell silver for 5% to 10% above spot. So when I can buy it for below spot, I do, then I sell it quick. Holding it might get you more, but it can also burn you.

Forget silver unless you want just a little bit of it and then buy a bar from a dealer though you will pay a premium for it. Do not waste money in Proof sets or the like from the US Mint or any mint. They are a suckers play with huge mark-ups and only good if you want to be a coin collector. They are not a good investment, believe me. Coin sets from the 70's are selling for less than the original price!

The price of precious metal keeps pace with inflation on the average.

That is only a little better than burying your money in the back yard.

I recommend investing in stocks. Go to a broker such as Scottrade or TD Ameritrade and talk to them.

You don't need to study the stock market. The broker can show you how to invest in groups of stocks.

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If you buy a metal, it does not profit you anything or do any real work. It's value is arbitrary, and based on a few factors like fear, inflation, etc. Owning stocks or investing in a business will actually work for you, and grow.

Theres apparently some benefit to be had in investing in silver coins as they are of more value than dollars, can be bought cheaper and worth a lot. so apparently according to people who have done so, its a worthwhile investment?