Silver has been on my mind quite a bit lately, especially with the big drop in price this week. Silver dropped to $31.09/oz this week and gold dropped to $1,656.10/oz.
The last time silver was this low was mid-February of this year, more than 7 months ago. I see the lower price as the perfect buying opportunity.
Since I have an account with Silver Saver, it’s easy to make impromptu purchases when the price of silver drops. For example, I put in an order for an extra $100 of silver on Thursday evening (9/22/2011), which was then executed on Friday (9/23/2011). I plan to make additional one-off purchases in the coming weeks.
As you may know, I’ve written about the importance of investing in silver (also known as poor man’s gold) a few times over the last couple of months. This is because I feel you’d be hard-pressed to find a better way to invest your money.
Gold and silver will be especially important if and when hyperinflation kicks in. As fiat currencies like the dollar and the Euro collapse, the price of gold and silver will rise.
More importantly, the gold and silver markets have been heavily manipulated to keep prices artificially low. This is finally coming to light. When the manipulation is fully exposed — and stopped — that’s when the price of gold and silver will explode. As Stephen Jones noted on September 16, 2011:
JPMorgan has been manipulating the price of silver downward ever since it took over Bear Stearns in 2008. Bear Stearns had been the silver price manipulator up to then. […] When Bear Stearns went bankrupt, their job as Silver Manipulator-in-Chief was passed down to JPMorgan.
Now they are getting in trouble, and their exposure could soon put a stop to their manipulations. When that happens, the price of silver will go through the roof, as people recognize its true value.
Although I have purchased physical silver in the past, I’ve personally chosen to set up an account at Silver Saver. This allows me to buy silver and gold in small amounts. You can set up an automatic purchase once a week or once a month. This is the equivalent of “dollar cost averaging” for precious metals.
Plus, you can also make one-time purchases when the price drops. I have placed additional orders twice now to take advantage of temporary drops in price.
If you are setting up your account for the first time, it takes a couple business days to validate your bank account. They’ll debit two small amounts, less than a dollar each, which you will then have to input on the Silver Saver site.
Once you’ve done this, you’ll be able to set up a weekly or monthly investment. I’ve chosen to invest weekly because I feel it will produce an overall lower cost basis.
Once your account is set up, you can make one-time purchases whenever you want, and you can convert back and forth from cash to silver and vice versa whenever you want.
While I feel it’s important to have some physical metal in your possession, I also feel there are advantages to having physical holdings that are not in your direct possession.
For example, if you were forced to flee your home, it would be quite difficult to carry a lot of precious metals with you. And if all your silver and gold is in your home, in your car, or on your person, then you are more vulnerable to theft.
On the other hand, if some of your silver and gold is stored in a secure facility elsewhere, then you are more mobile and less vulnerable to theft. This — combined with the ability to make small impromptu purchases — is what makes Silver Saver attractive to me.
Here is a partial view of the Silver Saver Account Dashboard. It is similar to what you’ll see once you start investing (click to enlarge):
If you’d like to create a Silver Saver account and take advantage of the low(er) silver and gold prices, please sign up here.
Don’t be scared. Be prepared.