Silver (and gold) are headlining the investment news in several ways. Depending on whom you listen to or read you will get mixed results.

The Bulls on one side and the Bears on the other seem to manipulate the facts to their points of view. They are causing new potential precious metals investors’ angst. The confusion leads to a higher degree of uncertainty as to what to do.

The most frequently asked question I hear from a new potential metals investors is, “what should I do?”

I tell them the answer is not the same for everyone. Every investor has their own set of circumstances and goals. In order to answer properly certain questions need to be asked and answered first.

1. Are you looking to buy physical metals to hold or do you want to just paper trade?

2. Are you prepared to hold your precious metals investment long term if physical ownership is your plan?

3. Are you aware of the risk factors involved?

4. Are you looking for income, if so, metals investing is not for you.

5. Can you afford to lose a major portion of you investment without regret?

Based on the answers a potential new investor in metals gives to these basic questions would help determine their decision to invest in silver and/or gold or not.

Here is a quick guide to follow to each question.

Question 1: If you want to own and hold physical metals you should invest in recognized bullion coins such as the American Eagles or Canadian Maple Leafs or Australian bullion coins. The reason to own these coins is because it is easier to sell one or more 1 oz. coins at a time than it is to sell a 100 oz. bar of silver or gold. You have greater flexibility for liquidation. If on the other hand your decision is to paper trade you don’t have to make those decisions. However you must make sure your responses to the remaining four questions are answered before you buy or trade.

Question 2: If you buy physical bullion you must be prepared to hold your investment for the long term to achieve the greatest potential profit. The recommendation is 3 to 5 years or more. However, there are two very important points to understand as well. You must be prepared to hold your investment longer if the market is not moving up. Second, if the market is strong and moving higher in a shorter period of time, you should establish a percentage increase you want to achieve and then sell your metals at that level. Never get greedy.

Question 3: The risks of buying or trading precious metals are no different than the risks of any investment vehicle. The markets go both ways and timing is crucial. Know when to buy and when to sell by having a plan as described in answer to question 2 above. If you are in the market and it moves against you, don’t panic. Hold your position and wait. As mentioned, sometimes you must longer than you want.

Question 4: If you are looking to generate income from precious metals, this is NOT the investment for you. Precious metals are not an income producing investment.

Question 5: If you cannot afford to lose a small or large portion of your investment in precious metals without getting financially hurt then this is NOT an investment option for you. If you can afford to lose and you are mentally and financially prepared to do so, then you can enter this market.

Don’t let the Bulls or Bears sway you one way or the other. Read what they have to say on both sides of the bullion coin and then answer the questions as honestly as you can to decide if precious metals’ investing is truly an option for you.

In closing, you noticed the title of the article was Occupy Silver. The reason is if you do decide to enter this market then Silver Bullion is the way to go. My next article will tell you why. In the mean time read as much as you can before you get started.