Dividends4Life: Dividend Stocks, Silver, And Safety

Dividend Stocks, Silver, And Safety

Posted by D4L | Saturday, May 18, 2013 | | 0 comments »

One of the reasons why some investors turn to hard metals such as silver is because of its perceived safety as an inflation hedge and store of value. In some cases, investors get spooked by the natural volatility inherent in stock market investing, and so they turn to a hard asset such as silver with the aim of smoothing out the ride. One interesting thing worth keeping in mind, though, is the fact that silver can be far more volatile than the prices of most blue-chip stocks, even in the short term.

This is probably the most important thing I have to say about the difference between non-productive assets like silver and something that generates dependable cash like a dividend stock: with a productive asset that pays dividends, you will always be receiving value regardless of the stock price at any point in time. With a non-productive asset like silver, you are solely reliant upon the market price to determine your future returns.

Source: Seeking Alpha

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