Warren Buffett Silver Investment

Instead of investing in many stocks or index funds, one way of investing that Warren Buffett invests is in a Warren Buffett silver investment. Currently, the United States markets are very high and this means that some investors will naturally want to take their profits and take it out of the markets. The act of taking gains from the market inevitably results in a market drop, which is tied greatly to precious metal increases. So for example, gold and silver will increase in value and Warren Buffett may look to do just this. He may liquidate some of his holdings in Berkshire Hathaway stocks, and he may instead opt to invest in precious metal markets such as silver. Silver is a unique facet of the precious metals asset class because is much cheaper than gold, which is where many people invest their money while not in the dollar. Silver is one of the more or less talked about vehicles for investment which is truly under-appreciated. Though it moves in a similar fashion to its bigger brother gold, silver is inherently more attractive due to its price point.

In May 1998, for example, Warren Buffett and Berkshire Hathaway bought over 130 million ounces of silver. Ten years later, the price of silver went from $5 an ounce to $20 an ounce and Warren likely stood to gain four times his investment! So as can be seen from this example, the buy-and-hold strategy of Warren Buffett and Berkshire Hathaway with silver has definitely proven to be a successful one that is time-tested.

Leave a Reply

Your email address will not be published. Required fields are marked *