How To Hedge Investments Using Silver And Silver Coins

Posted on: 27 October 2020

It is always important to diversify and protect your investments from economic downturns. This is the reason that financial advisors suggest never investing solely into one stock or one particular investment. 

As was seen in the last few months, the economy is particularly vulnerable to unexpected events such as the coronavirus. 

In order to hedge investments from future incidents, wise investors have turned to precious metals. While many are aware of gold's role in hedging traditional investments, there are good reasons to also include silver into a hedged portfolio. The primary reason to choose silver is that it is much more available and affordable for the average investor. Below are three separate ways to invest in silver and silver coins.

Investing in Silver Bullion

The most common method of buying and investing in silver is to use bullion. Silver bullion can be shaped like normal coins, or it can be formed in bars. The advantage to using silver bullion is that it's easy to buy online and it is easy to store. Silver bullion can be kept in a safe deposit at a local bank or even in a home safe. The other advantage to silver bullion is that it is so easy to sell. A person can walk into any store that sells silver coins and sell them on the spot. 

Buying Silver Coins

Another option is to buy silver coins. These are different than silver bullion in that they were coins that were in circulation. When buying silver coins for their silver value, avoid collectable coins, which are often worth more due to the historical nature of the coin. Common silver coins, which are sometimes referred to as junk silver, are the correct investment vehicle. These are coins, such as the regular quarter minted in the late 1930s up until the 1960s, which have silver in them.

Choosing a Silver-Backed Investment Fund

Aside from using silver coins, another option is to invest in a fund that owns silver. This is perfect for people who do not want to bother storing or holding onto actual silver. These funds are traded on the stock exchange and an investor can even have them in their retirement account. The downside to using these as a silver hedge against a stock market collapse is that it is not physical silver. Should something severely catastrophic occur, many people would prefer to have the silver in their possession. 

Contact silver coin shops in your area to learn more.


When to Use a Financial Advisor

Hi, my name is Melinda Jacobs. My husband John and I are in our 50s, and we both still work full-time jobs. I used to be of the mind that we should put every spare penny into an interest bearing savings account. That is, until we started going to a financial adviser. Our finance consultant has showed us how to manage our money in a manner that is going to not only sustain us today but also in the future. I would like to share some of what we’ve learned about saving and managing money in today’s economy and why the days of putting money into a savings account is not really practical. I hope that what I have to share proves to be beneficial to you.