If you are thinking about investing in US junk silver coins you probably need to understand that the price of these silver coins moves in relationship to silver coin scrap prices.
Many small investors have done well by advertising in Craig’s List or the local newspapers, to buy silver at the spot price. You want to run these ad’s when the spot price is low. You can turn around and sell the silver when the price comes up off of the bottom price. Depending on how you sell your silver you can probably tack on a premium to your buyer.
Silver is a known as a great commodity to buy and hold in case there is a devastating downturn in our economy. The thing that a lot of investors forget is that they can earn more silver by taking some profits as the spot price works its way up and down.
Let’s say for example that you are interested in stacking silver in anticipation of a downturn in the economy. You know you will be ready when the time comes, but it bothers you to let such a large percentage of your assets just sit there.
US Junk Silver Coins 20/80 Strategy
When you buy silver to add to your holdings, you may want to think about splitting off 20% of your total purchase and declaring this as a growth account. You understand the price of precious metals never stands still for very long. The trading prices usually move into a trading range and gyrate up and down for a while, then break into a new range.
The key here is to learn to make trades while controlling the transaction costs. If you are paying more than you need to in commissions, you will never be able to make that money back on small price fluctuations. You need to figure out how you can buy silver without paying a premium or at least a very low premium. I have always heard that you make your money when you are buying, not when you are selling.
If you want to speculate on silver you could buy silver from yourself with no premium markup and sell that silver on the market at a higher price and earn a on top of that. Just be sure to replace the silver you use in this tactic when the price goes down again.