Tuesday, February 19, 2013

Investment Strategies For People On A Budget

If you’ve done any reading on financial management strategies, you’ve certainly come across advice telling you to create an investment portfolio.  A collection of diversified investments is, according to this advice, a key part in assuring long term personal financial success.  Investing is an important matter though it’s one that many people struggle to understand.  They’re under the mistaken impression that investing is a task that’s difficult and expensive to accomplish.  While it’s true that putting together a solid investment portfolio will take many years, there are actually a number of simple investments that you can make today.  Even better, many of these simple investments don’t require a lot of money.  Even on a budget it’s possible to put your money to work for you.

One savvy investment strategy to consider is to buy silver coins.  Many national mints, including the U.S. Mint, produce gold and silver investment coins.  The 1 oFnofz silver eagle is the current silver investment coin offered in the United States; this is the counterpart of the well-known gold eagle coin.  The government guarantees the weight and purity of the silver so you can feel confident that the coin contains exactly one full ounce.  Knowing precisely how much silver you own is helpful when totaling the collective value of your coins.  The price of silver and other precious metals reported by financial news sources is typically by the ounce.  For instance, if you own six one ounce silver coins and the current price of silver is twenty-five dollars per ounce, then your six coins are worth $150.  You know precisely how much your silver is worth without having to do a lot of complex multiplication and division.

The precise nature of mint-issue bullion coins is of particular interest to investors.  As mentioned above, convenient calculation is one major advantage.  Another advantage becomes clear when it’s time to sell your silver.  Trying to sell an investment coin or other piece of silver that comes with no guarantee of its weight or purity is very difficult.  Buyers will be reluctant to purchase from you because there’s no easy way of determining the quality of the si you’re selling.  If you want to sell a piece of silver that has no guaranteed weight or purity and get its full value, you might have to pay for a technical assessment of the piece.  Only then can your buyer feel confident about the silver they’re purchasing from you.  This difficulty can be easily avoided by purchasing government-issued bullion coins.

Many governments issue investment coins in gold and silver.  These coins are typically issued in one ounce denominations.  Often, ¼, ½, and full ounce denominations are available; other weight denominations are sometimes available.  Investment coins have been minted for many years and are actively sought by both collectors and investors.  The historic relevance of coins such as the British gold sovereign and the gold Krugerrand from South Africa add a special flair to any coin collection.  Certain bullion coins actually accumulate additional value because of their historic or artistic value.

Purchasing low weight denomination silver coins is a good way to begin investing.  Silver coins are affordable, easy to resell, and have a very favorable return.  They’re also very beautiful and make excellent heirlooms and gifts.
Dorian Travers is a freelance writer and blogger and likes to keep his readers informed on subjects where life meets money.