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Silver- An Investment to Consider When You Cannot Afford to Invest

Updated on April 23, 2016

Hey. That's very shiny

There are only so many Warren Buffets in the world

You are not Donald Trump. When people grumble about the decline in the stock market or the dynamics of Wall Street, you're mostly frustrated because you have no idea what they're talking about.

There isn't anything to be ashamed of when it comes to this. How much do you know about asteroid mining? Did you even know there was such an idea? The point is that there are but so many people who have the wherewithal or financial resources (and honestly, the interest) to get into investments or build some investment portfolio. The truth is that just about any financially stable individual can do this, but it's also truthful that many of these people are not going to bother. Many recognize they should one way or another, but don't. First of all, the economy has most blue-collar and hands-on people counting pennies and pinching every one of them. They are not going to risk what they have left with the Wall Street casino.

There are more and more options out there and many of them are quite innovative, but many people enjoy something they can hold in their hand. Keeping it simple is usually the best way to go with most things, and there is a great way when it comes to investing. A smart and simple method that even the most basic of us can invest in is silver.

At the time of this writing, the price for an ounce of gold is $1230.00. The price of an ounce of silver at this time is $17.03. What's more important to keep in mind is that these prices of silver are right about at the low point of the past ten years, and about five years ago (when the economy sucked miserably) it was over $48. It has long been considered safe to see that when the dollar drops, these metals go up.

About ten years ago, gold was valued somewhere near $560 and the high was about five years ago (when the economy was suffering) and revolving near $1900. So, those who had the money to buy the gold a decade ago but suffered during the economic decline at least possessed something they could sell for much more than they paid for it. The simplicity of this is so obvious to just about anyone. You don't have to know how to decipher that ticker thingy at the bottom of the news feed to see the benefit of this.

But gold is still pricey as a thing. Today, one can purchase a 1/10 ounce gold coin for somewhere near $140. Now, should the value of gold increase two-fold, that very coin could reach close to three hundred bucks. Savvy investors might look at this as an opportunity, but the average person may very well need to pay the rent, mortgage or power bill. They might need one or two used tires. It doesn't require a dazzling imagination to see that when things are good in the economy, the average Joe might be able to buy a game console for the house and a few other simple luxuries (including the occasional 1/10 ounce gold coin) but may need some stuff to peddle on eBay when the bills become a daunting priority.

This is why this is concentrating on silver. Today one can purchase silver bars, coins, rounds, and even silver bullets, at a rate that is the best over the past decade. The stuff was almost two dollars cheaper just a month ago! The mode of thinking here is that one purchase silver in the manner of your choice, either through simple bars that are merely worth the metal value, or choose coins that vary in value for various numismatic reasons. But consider the obvious reasons for doing so.

Take Advantage While You Can

If you're hanging in there and can afford the occasional pizza or even the occasional trip to the movies, you can do this.

Consider the idea of buying silver at a volume of two ounces per weekly paycheck, today costing you somewhere around forty to fifty bucks. Just sock the stuff away in a box or drawer and let it accumulate for as long as you can purchase like this without compromising the important things. If you can afford a few simple things to enjoy such as the movies, going to any show or the race, a new game for the XBox or whatever it is, make such metal purchases a part of your discretionary budget.

If the various pundits and aluminum hat conspiracy theorists are somewhere near correct, the near future could bring another economic decline. Some say the next decline could outdo the prior one we endured just a few years ago (and we still are, since growth has been merely stagnant). If these people are correct, then those who rely on a decent economy in their job may very well again see a kick to their wallet's groin. Further, if historical precedence is correct, when the dollar value drops and the economy strains, precious metal values increase, sometimes dramatically. Refer again to what these values were just five years ago compared to five years prior and then today.

If you have several ounces of precious metals on hand, the things you reach for first with the intention of pawning or selling on eBay don't have to be your tools, toys or wedding rings. Those ounces of metals you bought, mainly for this reason, will then be more valuable than they were when you bought them, but they may make the difference between having the lights turned out, the water turned off, or ending up out in the street.

Your humble writer learned a similar lesson about these things just a few years ago, although it was about recognizing a valuable investment that was stocks, not metals. Somewhere near 2008, the grocery chain Winn Dixie was suffering a severe setback and I saw their stock value plummet to somewhere near a nickel. My assumption at the time was that I doubted Winn Dixie would dry up and blow away, so I told myself and a few others that should one invest even $500 into this stock, it might very well pay off handsomely.

I was jazzed on the idea. But because I am not your savvy investor, I literally forgot about this. I really just forgot. So, fast forward a couple years and I'm in Winn Dixie, impressed by how they spruced up the place quite nicely and it seemed clear they were doing fine.

And then I felt my blood pressure plummet.

I looked into it and, at the time, the stock value was somewhere near $30. From near a nickel to about thirty bucks!

A $500 investment would easily skyrocket to well into the six figures. I saw this and, one, I knew there were numerous smart investors who saw what I saw but had the sense to jump in and make a fortune. I, unfortunately, didn't accomplish a thing but a few deserved punches to my own head.

Fast forward a bit more and I have been hearing radio and TV ads inundating us with the idea of buying gold and silver. This time I decided I would not forget but look a bit closer. Thus, the reason for this post written for your benefit and entertainment, and food for thought.

Not only does it make good sense to invest some in this, look at what the major investors are doing. Many are buying precious metals by the pound and even the ton. That in itself is amazing. Now, there are major corporations out there selling metals, but many have costs and commissions added to the cost because they have bills to pay and boat payments to keep current. But you can buy at near cost on eBay and other sites more than happy to sell by the ounce. You likely have coin shops near where you live.

Do Not Miss Out

Look into this. Do a little bit of homework. Do you really need that thing you're looking at, even if you can easily afford it (at the time being)? Hey, if you can afford to drive a sports car with those fancy rims, you have a huge TV in every single room and you find it beneath you to vacation in your own country, this really isn't written for you. But if you are a blue collar individual and doing okay, have a few nice things and enjoy showing off the latest cool thing you bought to your pals, then you need to keep this in mind and pass it around.

Your humble writer does live mainly paycheck to paycheck, but we can enjoy some pizza now and again and we Satellite TV and the internet. We are considering buying a better John Deere for the property. We have pets and can afford to take care of them. The kids have that game console and do something call Minecraft, whatever that is. But I will never forget being laid off in 2010 and struggling to find work, having to pawn and peddle just about every thing of value in order to avoid foreclosure. We couldn't afford the dollar value menu.

It took some time to recover and get my credit score back above 600 and then back into the high 700's. Today I can feel secure and even good about passing on an allowance to the kids and the smart phone is just awesome. So, I am purchasing silver a little at a time (and I have a couple 1/10 ounce gold coins, too) for as long as the stuff is cheap. The cars in the driveway are both pickups but they're paid for and run great. I still haven't learned my lesson when it comes to building a proper investment portfolio but I know a smart idea when I see one.

I've lost count on how many of these one ounce coins and bars I have, but I know a declining economy might prove to be a rude reminder someday. And with a little luck, I won't have to take a pathetic payday loan or sell the kids' game console.


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