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Silver Bullion - Risks attached to investing in silver
shares
Silver shares or silver share investing, like all forms of paper silver, present unacceptable risks at least as
far as the average silver investor who cannot afford to lose money is
of a concern. However, like indicated elsewhere on the Silver
Bullion website as well, the only form of paper silver that we condone or tolerate as far as a
secondary investment in silver goes, is silver shares or silver share investing. Silver mining companies need funds and
capital after all, at least initially, to stay afloat or to stay in operation. Therefore, despite the encouragement given to silver
share investors, we find it essential to consider at least some of the risks that are attached to silver shares
or silver share investing.
Invest in precious
metals today! Contact us for
details.
Physical Silver vs. Paper
Silver
'Trading' and not
'investing'...
It is actually more correct to refer to silver share investing as 'trading' and not
'investing,' because the share prices of silver mining companies are mainly driven
by sentiment instead of fundamentals or fundamental principles.
In many cases, the actual value of a silver share takes a back seat when it comes to
movements in the share price. The main reason for this phenomenon is because movements in silver shares are mostly driven by short-term
speculators or traders, who love to see huge short-term price fluctuations in order to make quick profits,
especially considering those with insider trading information pertaining to the silver market manipulation that has been
going on for a while now (at the time this was written). It is after all no secret that silver market
manipulation is responsible for huge fluctuations in the silver price, fluctuations that affect silver share
prices in turn.
Invest in precious
metals today! Contact us for
details.
Physical Silver vs. Paper
Silver
Difficult to determine fair
value...
There are various factors that impact on silver mining companies or silver mines for that matter, positively and
negatively. This makes it extremely difficult to place a fair value on silver shares at any given stage, especially while
silver market manipulation is still at
the order of the day (at the time this was written). It should therefore not come as a surprise that silver
shares provide a hot bed for speculation.
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