What does this mean?

Discussion in 'Bullion Investing' started by Coin Chick, Jan 26, 2011.

  1. Coin Chick

    Coin Chick Loves Gold

    What does the term leveraged silver mean? Anyone care to answer it for me so I understand it better? Thanks,
     
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  3. Ginger1

    Ginger1 Member

    First to understand leveraged silver investing, it’s vital to know what leverage is, how it works, and the different types of leverage an investor can use. Leverage as Princton defines, “money as a way to amplify potential gains.” Now most of this leverage will be borrowed money, but there are other types of levearage such as futures contracts, options, and time.

    Second, if you could find a silver mining stock that would pay a high enough dividend yield to pay the margin payments, then technically you’d own the stock with borrowed money. But again, leverage is great for stocks moving in your favor, but can burn when going against you. It takes an incredible amount of financial knowledge and experience to profit from leverage.
     
  4. Coin Chick

    Coin Chick Loves Gold

    Thanks so much for explaining this to me. I sort of understand it now. I saw it on a site talking about leverage but got nothing out of the article because it never explained what it meant.
     
  5. Ginger1

    Ginger1 Member

    You are welcome ! I am happy you could understand the leverage.Thanks
     
  6. serendipitous

    serendipitous New Member

    Well Explained by Ginger, Leverage is a very common term in Finance ,if you were a finance major you would've known :p
    Just kidding
     
  7. Ginger1

    Ginger1 Member

    LOL ! I am not finance major.
     
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