Guide to Investing in Silver – Chapter 9: Silver Mutual Funds

This is chapter number 9 out of 15. Read the rest:

Read Guide to Investing in Silver – Chapter 1: Introduction
Read Guide to Investing in Silver – Chapter 2: Starting out as a Silver Investor
Read Guide to Investing in Silver – Chapter 3: Silver as an Investment Vehicle
Read Guide to Investing in Silver – Chapter 4: Methods of investing in Silver
Read Guide to Investing in Silver – Chapter 5: Investing in Silver Bars
Read Guide to Investing in Silver – Chapter 6: Silver Coinage as an Investment
Read Guide to Investing in Silver – Chapter 7: Silver in Exchange Traded Funds (ETFs)
Read Guide to Investing in Silver – Chapter 8: Silver Mining Stocks

One of the easiest ways to invest in silver mining stocks in to invest through Silver Mutual Funds. It is also an indirect way of investing in silver without having to handle it. Silver mutual funds also offer a good way to spread your risk as you are not going to own shares in any individual companies but a basket of shares of mining companies. In this manner any price fluctuation in any particular companies will be diluted by the whole basket of shares.

There are already numerous Mutual funds which offer investments in Silver. You can choose to purchase the actual silver or buy stock in mining companies that have silver mines. You just need to select the mutual fund which best meets your investment objectives. The responsibility of managing your capital will be done by the mutual fund investment manager. It would be preferable that this manager has already isolated the stocks which will yield the highest returns for your money with regards to the risk undertaken.

You should also try to diversify your mining stocks portfolio to include other precious metals funds. This is because the fluctuations in the mining stocks can endure for several years. Therefore by diversifying, if any one fund depreciates, the gains of the other funds will seek to buffer the depreciation. However, you are also advised not to invest more than 5% of your total portfolio in precious metals.

The silver market will continue to remain strong as strong consumer fears are running high. As the economies of the world are going through a recession, people will continue to park their wealth in silver as a safe haven from the current financial crisis. This trend will continue as long as consumers still feel the effects of the credit crunch.

Read Guide to Investing in Silver – Chapter 10: Silver Futures
Read Guide to Investing in Silver – Chapter 11: Silver Certificates
Read Guide to Investing in Silver – Chapter 12: Comparison between various forms of Investment in Silver
Read Guide to Investing in Silver – Chapter 13: Investment in Silver versus Gold
Read Guide to Investing in Silver – Chapter 14: How to invest in Silver
Read Guide to Investing in Silver – Chapter 15: Conclusion