Silver Investment

So tomorrow I am selling back my textbooks to college because I don't need them, so I am considering buying a couple of ounces of silver from a family friend who owns a jewelry store. What do you guys think? He has been in the business for a couple of decades and he seems to think that silver should be on the rise to get to a better ratio with gold and I would like to sit on a few ounces and make some money.

Opinions?

 

If your going to invest in some silver, you should buy more than just a few ounces. You should buy around 10ish and sit on them if you want to make some real money.

 

If this means it comes at a discount, go for it. I don't see any reason it would drop.

 

I can't say I'm a pro on the subject, but I have done some reading and here are some points that stuck with me.

If you look at silvers going rate over the past 20 years you'll see it tends to go up,drop a little (as it doing right now) before rising up past it's previous high. Also if you consider how much we actually use silver vs gold and how their prices had been a fairly constant ratio until the last 5-10 years where gold has soared while being the less useful metal. We can only hope the ratio will go back to what it was before which would most likely mean silver rising.

http://silverprice.org/silver-price-history.html

All in all, I'd personally say it's a fairly safe investment that you can actually hold in your hand, but don't expect a quick return on it. It can also be fun as there are many silver coins, you don't have to buy bullions.

Also I agree with not only buying one ounce, as it's just under $30/oz. If you look at the last year of silver it's gone down $7 so as you can see, best case you would have made $7 off that $30 investment. Good %, but low return. As it's on the decline if you wanted, I would advise waiting it out a bit. Nothings worse than investing and watching it go down, but as long as you wait it out I guarantee it'll go back up.

 

Silver seems like a safe investment to me, i bought $3000 worth when it was $7 an ounce a few years ago. My grandpa is a big time silver investor. In the silver market alone he has made over a million dollars. He always tells me about how good investing in silver is. Obviously it is a precious metal, however, unlike gold silver is used commercially. As a result, the demand for it is pretty high.

TLDR: Invest in silver and hold onto it