Tuesday, April 16, 2019

Investing in Silver Mining Stocks Can Make You Rich

Are you someone who thinks that precious metals such as gold, silver, etc are only about jewelry? Do you know that you can actually make a killing in the stock market by trading in these metals?

Surprised? Don't be. Silver (Ag) and gold (Au) are known as commodities and by trading in these metals especially silver, you will be able to earn three times as much money in the futures market than any other commodity. If you prefer dealing in stocks and shares, you invest in precious metal mining stocks and play safe. While silver stocks don't give you the same leverage as the equivalent futures trading, they do endorse a more conservative and low risk approach to investing and becoming rich as a result of.

Mining stocks and futures
Silver is a precious metal that has been in demand for various purposes. While the cost of silver jewelry is less than that of gold jewelry, silver tends to move faster on the futures market as compared with gold futures. Silver and gold futures spell money for those individuals who have the ability to take risks and do not get scared of losing some money with market fluctuations. However, if you have a conservative approach towards investments and making money, silver stocks are good options.

Price rise and stock price
Trading in silver futures means understanding the reasons for change in price of the metal. There are quite a few factors that affect the price of silver stocks and it's not just the price of silver. Typically, prices of silver stocks will fall, if the stock market is under pressure, irrespective of the fact that price of the metal may be high.

However, if the price of this metal stays high for a prolonged period of time, silver stocks will also move up. Moreover, when investing in silver mining stocks, it's best to pick stocks of silver companies that are large and well established as they offer a safer and more secure investment. Stay away from small companies and penny stocks as these are very speculative in nature and can lead you into trouble.

Since this metal has use in industries as well as fashion, it experiences price rise as the economy does well, and therefore, allows you to hedge your investment from steep rise and fall. Here are some of the top traded silver stocks in the US and Canada stock exchanges.

1. Coeur D Alene (CDE)
2. Hecla Mining (HL)
3. Silvercorp Metals (SVM)

Demand and supply and stock price
Whenever there is a large imbalance between the demand and supply of silver, there is a corresponding rise and fall in the stock price of silver mining shares. Used in various industries like electronics, metal pipes manufacturing, coin minting, plastic industry, photography, laptops, refrigerators etc, it is almost always in demand. Moreover, market experts feel that silver will outperform even gold in 2010 and therefore trading in silver futures or investing in silver stocks is a good way to make money and get rich.
Kelly Hunter owns and operates Silver Bullion Bars [http://www.silver-bullion-bars.net] and writes about Silver 999 Bars [http://www.silver-bullion-bars.net/silver-999-bars.php]
Article Source: https://EzineArticles.com/expert/Kelly_Hunter/56382


Article Source: http://EzineArticles.com/3755062

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