Gold is a valuable precious metal that represents a wise investment in the current market. However, the price of silver has seen recent increases as well, making it another worthwhile purchase. Individuals who have some cash to spend may wish to invest in expensive silver stocks because these will still be far cheaper than gold.
Making an investment in expensive silver mining stocks is wise only if the stock price is positioned to increase. Investors should research the stock’s performance over the past year. Though this will not predict its future performance, it will provide investors with a picture of how it trends.
One silver stock that some analysts recommend is Silver Standard Resources Inc. This is a pure silver company that holds silver bullion and has the largest amount of silver resources of any company of its kind. It is leveraged to the price of silver and is currently trading at $17.89 per share. Another stock recommended by analysts is Silver Wheaton Corp, currently trading at $20.00 per share. Shares in the company are owned by major silver producers who provide Silver Wheaton with their silver at prices below market value.
Some analysts believe that silver stock investors should never sell silver stocks for paper currency, due to the devaluation of this money. They feel that investment in silver stocks that are fairly valued is wise and that money should not be wasted on overvalued silver stocks. Their mantra is to sell silver stock in order to raise cash to purchase another silver stock, buy gold coins, or other forms of these precious metals.
Before making any investment in expensive silver stocks, individuals should do their homework. There is no reason to throw money down the drain when it can be well-spent elsewhere. Purchase fairly valued silver stocks and watch the investment grow.