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New Year’s 2015 – A great opportunity for Silver Investing

by Silver Coin Guy on January 2, 2015

Happy New Year 2015This post is going to be more of a rambling, free flowing stream of thoughts and observations.  As I look back on the past year it all seems to have flown by so fast, for me at least, especially as I’m starting out 2015 in a completely different place…mentally, physically and financially, than I started out 2014.  What a difference a year makes, well, it’s true.

But this is a site about investing in silver and other precious metals, especially gold.  I think these are solid investments in just about any market or investment period, but there are certainly times when it is better to invest in metals than others.  It is my opinion, and it’s just that, an opinion, that this is one of those times.  Let’s look at some of the reasons I have for thinking this.

Here are three things about precious metals:

  1. Gold and Silver prices tend to track the price of oil, which as we all know is down (a little over $54/bbl as I write)
  2. The price of gold and silver is volatile
  3. Silver is far more volatile than gold.  (On a percentage basis) Silver will go higher faster and crash lower with much more speed than gold. This makes silver the better option for speculation.

One can make the argument that oil is priced unusually low right now and, sure enough, gold and silver prices are down as well.  As I write the spot price for Gold is $1,187.11/oz and Silver is at $15.85/oz, which I would classify as “unusually low”.  As an aside my last silver coin purchase, which were a roll of Junk Silver Dimes, was made when silver was just over $20/oz, which I still think was a good price given the long term potential of silver over the coming year.

I don’t think over the medium or long term oil will stay at these low prices, even with a recession looming over the next 12-18 months.  Oil should tick up in price taking gold and silver along with it.  I think there is a good probability that silver will go back to at least the $20/oz range, which would be a sweet 33% gain.  Gold will move upwards as well but not as much on a percentage basis.  For me gold is a long term hold, I don’t use it for speculation.  Silver on the other hand is ideal.  For these purposes I like Silver bars rather than  coins, as they have less markup and I’m using these as a speculating play rather than holding them for the long terms.  I also like to purchase these from a dealer, Camino Coin or Northern Nevada Coin are two company’s I have used and recommend, and sell them on ebay.

And one doesn’t have to speculate.  Another great precious metal strategy is simply to pick up some coins, bars or bullion every month or so, although I would recommend trying to pick up maybe a little more than usual at the current prices since this is a buying opportunity.

Whichever you decide to do, and even if you decide to do nothing, I wish you the best in this upcoming year and hope your happy, prosperous and joyful.

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