Tips for learning
how to invest in silver
Silver ETF could be good choice
for silver investing strategies
Todays (2000 - 2011 decade) commodity boom is followed by a lot of questions like "How to invest in silver". I receive this question from time to time from my readers. It is hard to resist temptation to invest some money into precious metals when it is easy to spot huge uptrend in price of these commodities.As you can know I am not generally bullish for long term commodity investing. I think that everything what is going up will also go down and so I recommend to take care when prepare for silver investing. It is important to prepare your silver ETF investing or trading strategy accordingly. There is necessary to do two steps to start this process:
- select instrument which can be used for silver investing
- find good trading strategy or investing strategy for silver
Both questions and their respective answers create basics of stock market investing for silver stocks and silver exchange traded funds.
What instrument can be used for silver investing
There are three ways how to invest in silver.First is go directly to commodity markets. You can trade silver on London Metal exchange. If you have selected
good stock broker
you can trade these instruments together with another asset classes like stocks or bonds or ETF on same account. This is cash product like currency. Here is screenshot of my broker's
stock trading software:
Another option is to use derivatives which are available of several commodity exchanges. New York Mercantile Exchange (NYMEX) or NYSE Liffe are good choices for US markets. There are futures contracts available there. If you plan to hold silver for longer time then remember that futures must be rolled over as they expire by specified date.
How to invest in silver etf
Thirds option is to use silver ETF shares.Silver ETF category offer several possibilities. I personally monitor SLV, ishares ETF with silver exposure. This ETF is most known silver ETF I think. Here is chart of this silver ETF:
Second silver ETF I like to monitor for possible silver trading strategies is PowerShares DB Silver Fund with ticker DBS
Another opportunity can be found with
leveraged etf
silver shares provided by Proshares etfs These two etf shares are leveraged two times and also offer opportunity to make money when silver price will decline.AGQ Ultra Silver ETF
ZSL Ultra short silver ETF
Best silver stocks
Silver stocks represent another opportunity how to invest in silver. It is indirect form as these silver companies have their own business rules, their own revenues and expenses. Their profits could directly related to the price of silver but it is not rule. Trade should implement specific stock trading strategy to trade these silver stocks. It is always ideal to find best silver stock in time.
Silver investing strategies
Every investor has his/her own view why to invest in silver. I personally prefer to be active. It means that I do not buy stock or ETF to hold them too long. I prefer to time my entries and then use main trading trend to generate profits. I do not hesitate to use short selling to profit from declining prices.Generally my Silver investing strategies are based on two basics. First one is
Global Macro overview
of commodities and silver particularly. I prepare this overview together with my analysts in my advisory company. Next I monitor silver ETF
stock chart development
and act accordingly. I do not buy when stock trading trend is down. I prefer to use short selling of silver ETF or buying of
inverse ETF
silver. One very specific Silver investing strategy is based on
gold silver ratio.
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