Silver Ownership and Withdrawal
Silver. Its chemical symbol is Ag. In Latin: silver um. It has an atomic number of 47. A soft white metal with great electrical conductivity. All interesting facts, but let’s talk about the investment qualities of silver. The metal occurs naturally, but most of the silver produced is a byproduct of gold, copper, lead, and zinc after they have been refined. Silver is considered a precious metal, and this makes it an ideal investment vehicle. That raises the question of “Is silver right for you as part of your retirement portfolio?” Let’s examine the pros and cons of adding physical silver to your portfolio. We can start by looking at the disadvantages first. In fact, I like to call them myths because most of them can be argued.
1]”Silver is too bulky to store and risks theft.”
2]”Forget silver. Buy gold. That’s where the money is.”
3]”Keep your money in the stock market. History shows outperformance.”
4]”Stay away from physical silver. Silver stocks, mining companies and futures are the way to go.”
First of all, regarding item number 1. Think about this. Silver coins and bars are no bulkier than a china set or an old stereo. I’m sure you can find storage space for these items. Why not money? About the risk of theft. We have safes and safe deposit boxes, as well as a good hiding place, like maybe the attic somewhere. I’m sure the average person can find a remote area to hide their stash of silver.
Next on the agenda. Buy gold not silver. This may have been true some time ago, but gold has already made an important run. Since silver has a relationship with gold, I think it may be silver’s turn. In fact, I expect silver to be around $30.00 an ounce in the not too distant future. That would be a good return on your money at recent silver prices.
Moving on to point 3. Stocks outperform metals. TRUE. In the long run yes. History has shown it, but we are talking about diversification. I am not suggesting that you put your entire savings amount into silver. I am suggesting that 10 to 15 percent should be sufficient. The old saying about not putting all your eggs in one basket rings true here.
Last but not least, point 4. Many people suggest not paying the small premium that is given to physical silver and instead go for paper silver. I give this a resounding no, no, no. Let’s look at it this way, our portfolio is already 85 to 90 percent paper. Whether it be stocks, bonds, certificates of deposit, cash, etc. Why the hell would you end it with 10 to 15 percent more paper? hard assets. Yes, tangible assets. In a time of financial collapse, physical silver will be hoarded.
Finally, the only one who can make the decision is you. How much money would you like to have? We all control our own financial decisions. Always remember… Every cloud has a SILVER lining.
