Precious metals average the same as the inflation rate. That is better than burying your money in the back yard, but not by much.
. .
You can take the risk, it is like having an investment. I am sure they will get higher value eventually but that is not a guarantee that you will get higher interest.
Who wants you to buy silver? The guys that "sell" silver?
Think about it, let's say you are sitting on tons of silver. And it will quintuple (or more) in 6 years. Why would you run a business, pay advertising costs and be willing to sell your silver for about $20., when you could get a real job, make more money and buy more silver and sit and wait?
Maybe they are selling the hype.
But if $700. is your "net worth", keep a few dollars for an emergency fund and put the rest in silver coins.
But if your net worth was $700,000., I would tell you no more than 10% in silver. There is an ETF - SLV, which follows the value of silver. Having tens of thousands of dollars in silver is a hassle to store and protect.
But I have been wrong before.
Honestly, precious metals won't see a whole lot of growth in the next few years. You're better off sticking it in an index fund for the next half decade and coming out with ~$1030 then putting it into silver and likely coming out with the same amount. The problem is, there isn't a whole lot of demand for silver since it's a luxury, and I highly doubt it will increase significantly between now and then. The world isn't out of this recession by a long shot- the vast majority of the growth is artificial due to government spending that can't go on much longer.
GDP numbers just came out-- they altered the way it was measured. If it was measured under the old system we would have lost ~1% instead of gained .1%-- we are far from out of this recession. Anyhow, if you want more info feel free to PM me-- it will help me define my positions on everything and hopefully teach you a bit.
I hear that by 2020 it will be like hundreds of dollars per ounce, so if that's the case, and right now its only 20 or so an ounce, should I be buying as much silver as possible? I am 17 and have 700 dollars in bank now, 2 silver eagles (1 ounce).
This is like 6% of my net worth right now in silver... how many percent should it be?
