When it comes to investing money, every asset has its benefits and cons. Things may not seem as they should and what someone thinks is important may not be that important to someone else.
Whenever the price of a commodity rises the interest in that commodity also rises. Investors wonder if they should buy or sell or shift their attention elsewhere.
Of all the precious metals in the world, silver is the most volatile. However, it is seen as a safe haven asset just as gold is. Silver can protect investors in uncertain times. With the current tensions and difficult times we have lived through in the last couple of years, it has become clearer that having silver in an investment portfolio can help weather the storm.
The price of silver is projected to rise with the projected rise in silver demand. Silver demand is expected to rise by 8% this year to reach a record 1.1 billion ounces. According to the Silver Institute, the demand will be driven by the expansion of green technologies and the record production number of photovoltaic cells for solar energy production.
The demand for Silver Investment products like silver bullion bars and coins is expected to rise by 13% this year.
Demand much be rising but the Silver Institute reckons that there still will be a deficit of 20 million oz. this year which will contribute to the price of silver going up.
With that in mind, let’s look at the benefits and disadvantages of buying silver
Advantages of buying silver
1. Silver offers protection
Investors flock to precious metals in times of trouble. When there is economic risk and admits political turmoil, silver offers a refuge. Most people gravitate towards gold and silver. Even though the latter is often overlooked it plays the same part as gold.
2. It’s tangible
Cash, stock, bonds, and other financial products are common forms of holding on to wealth but in the end, they are all just digital promissory notes. They are made vulnerable by actions like printing money. Silver on the other hand is not vulnerable to depreciation like these other assets. Silver is a tangible and finite asset. Even though it is affected by market fluctuations, physical silver has an inherent market value. You can buy silver bullion in the form of bars or coins.
3. It costs less than gold
Compared to gold, silver is less expensive and more accessible. It is also versatile to spend. Silver is easier to break to use as a currency than a gold coin. Divvying up an ounce of gold can be challenging. Therefore silver is more practical and versatile than gold, making the silver investment even more appealing.
4. Silver produces high returns
The price of silver moves in tandem with that of gold. When gold goes up so does silver. Right now, silver is worth 1/79th the gold price, which makes silver very affordable. It also means silver stands to vain more percentage-wise. The fact is silver has outperformed gold in many ways especially when the market has been bullish.
5. History favors silver
Silver has been used as legal tender for thousands of years and that history lends the metal a sense of stability. Knowing that silver has always been used as currency for thousands of years can be reassuring to a lot of people. There has always been some assurance that when you buy silver bullion, its value will endure even when fiat currency loses value.
By all accounts, owning silver has more benefits than most people know. Investing in silver can help you hedge against financial risks. History is definitely on the side of silver and because of its inherent value, and its growing usefulness in various sectors this white metal sill always be valuable.
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