CBS News: How to invest in silver
Why should anyone invest in silver?
January 2, 2024 —
Precious metals
Running Point and its chief investment officer, Michael Ashley Schulman, CFA, were quoted by CBS News in an article — by Tim Maxwell, “Is a silver IRA worth it?” — regarding advice on how to invest in silver and avoid common pitfalls.
How to own?
Although owning silver jewelry can seem like a fun way to invest, it is usually not an efficient method because jewelry often has a high design and retail markup on purchase that cannot be recouped when you want to sell it. Additionally, silver jewelry is often not pure enough to be on par with coins and bars.
Inflation hedge?
Silver is a weak inflation hedge, not nearly as stable or widely recognized for this purpose as gold. Investors may choose to diversify their precious metal holdings by including both gold and silver in their portfolios to mitigate the risks associated with each metal’s unique characteristics but the effectiveness of silver (or any precious metal) as an inflation hedge depends on the specific economic conditions and market dynamics at a given time.
Quoted article excerpts are below:
While silver IRAs deliver numerous benefits, they also come with a degree of risk, which many fail to understand, says Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors.
“The value of silver is often subject to its use and versatility as an industrial metal input in electronics, mirrors, solar panels, antimicrobial coatings, batteries, water purification and automotive applications,” says Schulman. “It can be especially subject to economic and business cycles.”
Schulman also warns, “Some of the largest risks come from dealing with unreputable dealers that may overcharge for their services.” As such, it’s imperative to run the SEC and FINRA checks mentioned above. Also, pay attention to customer reviews and ratings for any company you’re considering and consult your financial advisor if necessary.
“Too many people miss the silver lining because they’re expecting gold.”
— Maurice Setter, English soccer player and manager
Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC ( Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-24-03
