Silver Stock Picks | Select a company to invest $10k in US stock ...

Pick a company to invest k in US stock market gold/silver sector?
How do I pick one company over another? My goal is to sell at $ 15,000, whenever that happens. I don?t need to money to live on ? I have a good job, so I can be speculative.

For example, how would I go about comparing PAAS (Pan American Silver Corp) to MGN (Mines Management Inc)? I have access to charts, funamentals, earnings, etc. Is one better than the other? Are they both bad?

Does another company in the sector outshine the rest somehow?
Thanks, all. Lots of solid advice all around. Wish I could dole out points to several ? Paducahbill and others. Cheers!
Best answers:

Answer by Yorky
Bad choice at this time.

asked by: Niner

Does it make sense to buy silver?
Let me give you a little bit of background on myself:

I?m 20 years old, a student (no permanent job), and I love investing.
I?ve been investing since I turned 18, and with a lot of saving and consistently good stock picks, I?ve accumulated around $ 45,000.
Now, I am a novice investor and I really have no complex, technical evaluation in order to pick stocks. I pretty much just pick companies I have heard of and read good things about. I think about the situation our economy is in, and what the current events are like when making my picks. However, when it comes down to it, I think I?m pretty much just gambling on gut instinct.

Now to my point:

With the profits I?m making, I have the urge to spend. I want to buy stuff that I can feel in my hand. I want to start a collection ? but a collection that is worth something and will appreciate hopefully in value.
After thinking long and hard, I thought 1,5, or 10oz silver bars would be cool to collect. However, silver is $ 33.50 per oz now, and given that it was only $ 9 per oz during the 2008 recession, I am wondering whether it?s in a bubble. I don?t want to have a collection that is going to drop dramatically in value.
Unlike other typical collectible items (such as antiques), silver will always be readily purchasable and have an exact value tied to it, leaving no room for bumped up appraisal margins.

Are silver prices cyclical? Or do they tend to go up only when the economy is bad? Does it make sense for me to start a collection of silver, given how well I?m doing in the stock market and how readily available silver is to purchase?
Best answers:

Answer by Slick
An investment does not care who owns it. An investment isn?t good or bad for a particular age. If it?s going to make money, then buy it. If it?s not then you don?t. That being said it does sound like you?re going on gut instinct. How much research have you actually done on what you?re buying? Are you looking at the quarterly and yearly reports that the corproations are required to file with the SEC? Do you really know what?s going on with them? Have you been able to actually visit or do research on how your companies are doing in the marketplace with their products or services?

Historically you buy commodities when times are tough. You buy stocks when the economy is improving. Most people, however, usually buy at the top of a market, because that?s where most of the excitement is.

Commodities are different from stocks because they don?t actually produce any income. They just sit there and hopefully they are appreciating when you have them. The problem is that if you don?t understand enough about the market for the commodity that you?ve invested in then you?re not going to know if the time is right for making money with that commodity. You need to have an understanding of the market and who?s buying and why. If you?re collecting something to invest in then collect something you are interested in and undrestand.

My business was doing really well and I took some of that money and invested about 30K in the market starting in late 2008 and I went on to quadruple my investment. I have done this almost entirely in the stock market. I did invest in gold and the Swiss franc but those investments were only kept a short period of time. Sometimes you get lucky like that. My advice to you, is if you?re really interested in silver is to buy just a little. Spending a few thousand dollars on silver isn?t going to hurt if you lose money on it, but liquidating your portfolio to do so might actually be disastrous for your investments, especially if the market that you?ve just bought into reverses. It?s very hard to get out of something quickly enough to avoid losses when the market is retreating fast.

You?re young enough that you could recover from losses and experience is usually the best teacher. If you?re really nervous about the economy then you may want to have some other investments besides stocks. Personally I feel that the economy is slowly improving. I have a lot of faith in our stock markets and in the possibility for making good returns over the next several years.

Silver almost always follows gold. One of the reasons for this is that silver is considered the poor man?s gold. There?s more of it. The other reason is that silver and gold are very pure metals. They have industrial uses as well. Some people say we have a shortage of gold and silver. I also believe this is the main reason for the run-up in prices over the past few years.

Remember: You always make your money when you buy, not when you sell, so buying at the right price is a huge key in making money. Buying a little of something never hurts. It allows you to get your feet wet and it also allows you to learn about what you?re buying. Tracking an investment you don?t own doesn?t tell you very much because you?re not invested in it. You don?t have as much interest in it.

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