If you’re planning to invest in precious metals, you might think that buying gold is the best way to start. While it is true that gold is an ideal long-term investment, the same goes for silver. For many years, silver has been considered a great asset to invest on as it is tangible money and can also be used as a form of savings. In recent years, silver as an investment has maintained a positive market demand. Even though silver may be more volatile compared to gold, there is also a strong demand for silver mainly for its wide range of industrial applications and finite supply.
How to Invest in Silver?
Several options are available if you plan to invest in silver. Because of simplicity, investing in silver bullion is the most popular way to buy silver. Once you buy quantities of silver bullion, you take outright ownership and responsibility to store and insure them. You can also buy silver coins or invest in silver futures and options, stocks, or exchange traded-fund (ETF).
What are the Advantages of Owning Silver?
Silver, like other precious metals, offer wealth protection especially during times of inflation or economic uncertainty. If you invest in silver, you will be able to keep what you have earned and saved as it is an asset that banks and the government cannot freeze or seize.
Since silver is a tangible asset, it is less prone to depreciation, cybercrime, and hacking. While silver can also be vulnerable to market fluctuations, it will not significantly lose value compared to cash, stocks, and other digital promissory notes.
No Counterparty Risk
When you invest in silver, you have full ownership and authority over your assets. Unlike owning stocks or bonds, you don’t need to deal with another party or broker to buy silver and be at the risk of the other party not being able to fulfill their contractual obligations.
Owning silver offers the same anonymity as owning and spending cash. If you decide to transfer it to a benefactor or sell it to someone else, you can do so privately, without need for legal proceedings or paperwork.
Silver is more affordable and more accessible compared to other precious metals. And, because silver can be broken down into smaller denominations, it can also be used for small purchases or if you have to meet a minor financial need.
Silver is a great thermal and electrical conductor and it is also ductile and malleable. These characteristics make silver an indispensable metal in many industries, from electronics to telecommunications and from jewelry and battery manufacturing. Once used, silver can no longer be restored or recycled. With silver’s finite supply and inability to return to the market for recycling, you can expect that the industrial demand for silver will remain robust for years to come.
The above shows that adding silver in your investment portfolio can result in short-term and long-term advantages. If you’re still unsure whether it is the perfect time to invest in silver, or if you don’t know how much you should start with, you can seek the advice of a precious metals strategist to help you make a decision.