Wealth does not come out of the blue.
You do not wake up one morning, and find yourself a millionaire.
However, creating wealth is possible through knowledge of investment, and your effort in finding the best investment.
Silver investment is one of the best investments in recent years.
Even if you take a short term approach, you will find that the volatility of silver price per Troy ounce makes many people rich.
The price of silver per ounce was $26.68 on 28 January 2011. The price at the time of writing as of 19 February 2011 is $32.66.
That means an increase of more than 20%in less than a month.
If you had taken a plunge in silver investment on 28 January 2011 to buy, and sell on 19 February 2011, you would have made nearly a 20% capital gain.
It does not matter what form of silver investment, you would have gained as long as you can buy and sell.
Silver ETF (Exchange Traded Fund) is a paper asset. You buy and sell as if you are selling shares in a company.
After deducting the transaction cost, the profit margin is still more or less 20%.
If you hold physical silver, as in buying silver bullions on 28 January 2011, you may not even receive the silver bars yet.
By the time you receive the silver bars, the price of silver may be higher.
Creating wealth is a process of finding a tool to increase the value of your assets.
Buying and selling silver in a short time can make a nice profits for you. However, if you have holding power for another year or two, you are likely to make more money through silver investment.
Many people have the time to monitor the silver price every day. They can buy silver ETF when it islow, and sell when they make 20% profits.
The best thing about silver is that it is extremely volatile. That means you will see a sharp pike in price followed by a sharp decline in price.
The historical high price for silver is $50 per Troy ounce. That was way back in January 1980.
The historical low price for silver is $3.50 per Troy ounce. The lowest point in history occurred in February 1991.
The rebound of silver price from February 1991 to now is not a smooth and even increment. The increase is generally a sharp pike followed by a sharp decline.
That is why creating wealth through silver investment is so exciting.
Investors who like a buy and hold strategy gain a few times profit if they had bought silver way back when the price was $3.50.
Short term traders who like the volatility, and short term gain benefit from buy low and sell high strategy.
Creating wealth through silver investment is a reality.
You can start small, by buying a few silver bars. The one ounce silver bar cost less than $40 at the moment. The physical silver as in silver coins and silver bars costs a premium over spot rate. The premium should not exceed 10% of the spot rate.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways.