Ten Rules to Keep in Mind Before you Buy Silver

American Silver Eagle

We recently asked our AMAZING fans on Facebook to tell us what type of advice they would offer up to people who are just getting started buying silver. We got over 70 responses. Here are the Ten Rules that sum up all the responses we received.

  1. Don’t be afraid of volatility let dollar-cost averaging keep you in check.
  2. Start your investment with what you are comfortable with.
  3. Buy on dips, but buy and hold!
  4. Educate yourself to the fullest.
  5. Diversify. Buy U.S., Canada, Mexico, Austrian, Australian, European.
  6. Try and at least buy small amounts every paycheck.
  7. Buy it, store it, and forget about it.
  8. Make sure your purchases are safe and secure
  9. Believe in the metal
  10. Buy only from APMEX
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What drives the price of silver?

APMEX American Eagle Silver CoinsWe recently hosted a Facebook chat with Miguel Perez-Santalla (MPS), VP of purchasing at APMEX. Miguel has over 30 years of experience in precious metals, foreign currencies, bonds and commodity futures. That chat was focused on buying silver and we got a couple of interesting questions.

Q: What drives the price of silver?

MPS: The biggest driver of silver right now in investment money. Current supply of fresh and recycled silver is meeting demand, however high leverage from investors in the market is greater than usual production. So the price of the white metal remains high. Physical demand has also grown from the public in their desire to acquire hard assets. The basic fundamentals, electrical, photography, photo voltaic, silverware etc are not the drivers. Still the price will go t to wherever highest bidder is.

Q: What is the best place to store precious metals?

MPS: If you were to consider foreign vaults, I recommend Switzerland. The country is a virtual fortress and they have a history of non-involvement in global affairs which makes them the safe haven of choice for the global investment community. But honestly, I would keep my stuff close to home!