In the last few years, silver has taken center stage in the world commodity markets with an absolute explosion in price. The explosion in demand can be attributed to increased industrial use, fears of inflation, and fears of economic collapse.
In this article we’ll explain how these funds work, which are the two best silver investing funds, and why silver mutual funds can be a good investment choice.
How Silver Mutual Funds Work
Silver mutual funds are essentially investment funds in which investors pool their money to invest in a specific investment asset — in this case, it’s silver. Companies that mine precious metals like gold and silver, companies that refine silver, companies that sell gold and silver, silver bullion — these can all be purchased by a silver mutual fund.
A silver mutual fund is basically a way for investors to add an expertly managed silver investments to their portfolio.
The best two precious metals investing funds would be the Permanent Portfolio Fund, and the Vanguard Precious Metals and Mining Fund. By “best”, I mean the highest rated funds that are also fairly conservative. During times of economic uncertainty, these are the funds you’ll want to consider.
The Permanent Portfolio Fund essentially is a fund that’s made up of a set amount of precious metals, a set amount of stocks, a set amount of bonds, and a set amount of cash. This allows part of your portfolio to gain no matter what the market is doing. It is an extremely conservative portfolio, and is actually based on the goal of creating a portfolio that never loses money over time. So far, it’s never lost value over a 2-year period, at least according to it’s price. That’s saying a lot.
The Vanguard Precious Metals and Mining fund is a mutual fund that invests both in silver and gold. If you think we’re going to be in a bull market for gold and silver, this is the fund to buy — it earns serious, serious gains during precious metals bull markets.
Of course, in the end, nothing beats good old-fashioned silver bullion — something everyone should own a little of, no matter what. It’s good for “doomsday” financial security.
Pros of Silver Investing
Inflation. People that invest in silver mutual funds are able to keep up with the inflation rate over time. It does not matter what the current state of the economy is, your investment in silver will protect at least much of your buying power indefinitely — gold and silver have never experienced hyperinflation like paper currencies. Note that we’re not saying you’ll make money no matter what — just that worst case scenario, you have hard assets which will have value. No risk of Enron stocks or Zimbabwe currency here.
Bull Market. As silver reserves begin to run out, this should make you more eager to invest because the value of silver is only going to increase until it peaks sometime in the next few years. Once this happens, it will become even more difficult to make a decent profit in silver. For you to benefit from making the best profits from silver investing, acting now might be the last time for a while where it makes sense to invest in silver. Once prices peak, it might take decades before we see a bull market like we’re currently experiencing.
Indochina. Also, one thing to look forward to is the increasing economies of India and China. This works perfect for investors of silver because as these countries expand their economy, the demand of silver will increase. The reason for this is because silver is a very abundant material that is used in a lot of products.
Growing Industry. Growing industries will need more silver to add to their products as sales and demand continues to increase. Overall, this will cause the price of silver to increase gradually, benefiting each investor that has money invested in this precious metal.
When it comes to silver, most people don’t realize that its value comes from its usefulness. It is said silver has over a 2000 uses which is the main reason it is a great investment. Silver is a product that is used in most of the products we have in our homes. It is also used in most tools in the medical field to perform operations and used to heal infected wounds.
How to Beat Inflation
Silver prices have been exploding for the last few years. We'll show you exactly what the live silver prices are, what to expect from the silver market, and how to invest in silver.
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