Many of us are keeping an eye on the live silver price, and wondering when–and if–we should buy.

Some investors and analysts would urge us to buy, suggesting that the recent upward trends are only the tip of the iceberg, in terms of what we can expect to see in the future.

But really, shouldn’t we be thinking about our purpose for buying silver?

Are we making an investment choice, hoping to earn long-term gains?

Or is it more realistic to look at buying silver as a hedge against inflation, and the general economic downturn that some suggest is only the beginning of the crunch?

Keep in mind, when we invest in precious metals, it’s somewhat of a trade-off. We’re trading our dollars for an actual, physical item. Just as some invest in artwork, classic cars or stamps, we’re putting our faith in the premise that the value of the physical item we own is going to appreciate. Theoretically, we could stand to make greater gains by investing in stocks, bonds, or any of a number of investments that have the potential to be favorably influenced by corporate performance.

Regardless of the trending analysis of the live silver price–and whatever predictions anyone can make–we know that on its own, silver isn’t going to expand its business or invent any great new technology.

Depending on who you ask, you can get a wide range of advice when it comes to silver investments.

Some advisors will suggest that owning silver and/or other precious metals is best viewed from the perspective of being a hedge against inflation. That is, it can be regarded as one way to protect our financial assets against financial and socioeconomic commotion.

For those who foresee outright catastrophe in our future, the purpose is even more pragmatic: when our paper currency is not accepted by merchants, gold and silver will become the means of securing services and products we need.

The live silver price is only one factor in making an investment decision. There are many others; including our perspective on why we’re making that investment.