Wednesday, April 21, 2010

How Silver Can Assist The Small Sole Trader

Anyone trying to raise money for their small business is faced with a number of options. A fairly sound choice, but one that lacks any growth potential, is simply to borrow, whether from family, friends or a helpful bank. Such a loan can help a company to grow, but the pot will, inevitably, run out. Additionally, repaying the interest depletes one’s financial reserves, although, hopefully, such interest repayments will be covered by increased turnover and hence greater profit.

The next obvious recourse is to attract investors. There is much to be said for selling equity in one’s business, but it comes with the considerable drawback that those investors inevitably gain a say in the running of the concern.

A creative thinker will look outside the box. Even though a small one-person operation may be wholly unconnected with the activities of the financial world – ‘the – there exist opportunities worth exploring. Whether one’s business is a washing-machine repair shop, a teddy bear sewing kit franchise or holistic therapies, investing in silver futures is more accessible than might be imagined.

Raising money by speculating in a commodity is nothing new. It is surprising that more individuals haven’t been attracted as yet to
silver futures. (That of course is one of the reasons that it is such an attractive prospect.) While you won’t get your hands on the metal itself, what – as an investor – you are acquiring are essentially contracts stating that a specified amount of silver will be bought at a future date for a pre-agreed sum. The knack lies in always being a buyer of those silver futures when silver prices look likely to go up and being a seller when that silver price looks set to fall.

If that sounds tricky, then one solution is to remove the mystique, as investors have done for decades, by allowing the nuts and bolts to be handled on your behalf by one of the many brokers or managers in the marketplace. With the plethora of information regarding forecast yields and past case histories on the web, taking the trouble to ‘get the gen’ on silvers futures could well be worth doing.

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