Investing In Silver

Buying Silver mining stocks or investing in a fund that holds Silver bullion are popular ways for investors to get Silver exposure. Although these investment vehicles do present certain advantages, particularly when stock markets are rising, they also present risks that are not correlated with the yellow metal.

For instance, Silver mining stock prices may be correlated to the price of spot Silver. But stock prices are also sensitive to the valuations of the mining company that offers them. Should a mining company underperform relative to the industry average, its stock value will depreciate, effectively removing its correlation with spot Silver.

On the other hand, funds that hold Silver bullion may charge fees for management and performance. Any additional fees paid to an intermediary can erode profits when Silver appreciates and add to losses when Silver fluctuates to the downside.

The primary goal of investors who use these financial instruments is to add Silver exposure to their portfolios. In light of this goal, it might make better sense to bypass these additional risks and fees, opting instead to buy Silver online as a direct investment.

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