When it comes to investing, people make it more complicated than it needs to be. Investing is actually a very simple process. Investing is not the same as trading. The process of investing capital is extremely simple to understand.
Here is an example of how to smartly invest in silver. The mistake that investors make is not using their capital to generate income while they are waiting for the price of silver to come down or go up. Let’s say that you want to invest in silver at a price of $34. You go to the individual who is selling the silver and tell them that you want to purchase silver when the price hits $34. However, you tell him that you want to be paid $1 per month until the price hits $34 for putting your capital aside for the investment. This immediately lowers your cost basis down to $33 and you are already generating an income. Now, let’s say that four months go by and the price of silver has not hit $34, but in the 5th month it does. During the fifth month, you are purchasing silver for the price that you have set. However, you have already generated an income of $5 for setting your capital aside, which means that your cost basis for silver has dropped to $29. You have generated an income before you even purchased any silver. Instead of waiting on the price of silver to reach the level of your capital, you set the capital aside and generated an income all while lowering your overall cost basis.