Ways to Buy Silver for Investment

Investors buy silver for three reasons: as an investment, a hedge against inflation, and for replacement of fiat currency. While many dividend growth investors see no value in holding silver, because it pays no compounding dividend, I believe some precious metal give extra-diversification to any portfolio.

Buying for investment is simply a supply/demand trade on the price increase. It's a commodity trade counting on the silver spot to rise. Or, it could be buying a silver coin with numismatic value, again hoping for value appreciation.

As an inflation hedge, we can look back to the 1970's when inflation reached 13% and silver prices skyrocketed. During this period, people held silver to offset inflation, and as its price rose investors grew out of the woodwork even after getting the recommendations from the MCX tips experts. The threat of any countries paper money becoming worthless is real, since none are redeemable in gold or silver as they were at one time.

Regardless of your reason for holding silver, the aim is to buy silver priced on the weight of the precious metal. For example, silver bars and coin are priced on weight, meaning that 1-oz coin or 1-oz bar carry the same amount of raw silver.

Holding some amount of precious metal is prudent. Even for a dividend growth and income investor, there is nothing wrong with holding precious metal, and silver provides the most affordable options. A trader can make the best out of his silver investments with free intraday commodity tips in the market.