You always hear a lot about how you should invest in gold, but why not invest in silver? Silver is very versatile, but it doesn’t have the same inherent value as gold. That being said, there is an inherent value to silver as well that could yield returns for your portfolio. Having silver in your portfolio diversifies your portfolio more, which leads to more investment returns in the future.
Diversifying your portfolio doesn’t just mean investing in one precious metal - it’s smart to diversify your precious metals portfolio as well so you don’t put your eggs in one basket. Silver is a great resource because it’s abundant, it’s relatively inexpensive, and it’s a useful resource to have at your disposal for multiple reasons. It’s a practical commodity investment to make.
Keep reading and find out why silver could be right for you. Here are five reasons why you should consider investing in silver. Some of them may surprise you!
1. Silver is Inexpensive
When we say silver is cheap, we’re talking about its price, not its value. Silver is a much cheaper investment to make than gold. At this very moment, the price of gold is $1,281.90. And at this same time, the price of silver is $16.63. There is clearly a marked difference between the two metals. You can even buy a kilo, or 32.15 troy ounces, of silver for a fraction of one ounce of gold (the price for a kilo right now is $534.67.)
Investing in silver is a relatively easy way to get into the precious metals market because of how cheap the price is per ounce. There is not much risk to your investment because you aren’t spending a lot of your hard-earned money. But, you can ease your way into an investment portfolio and work your way up to gold investment.
Or, if you wanted to give some precious metals as a gift, this is a great, and cost-effective, way to do that. Christmas is just around the corner, after all, so what better gift to give than a future in precious metals?
2. Invest in Silver and a Currency
Much of the appeal of the precious metals market is that the value and price displayed on the face of the coin, bar, or note is backed by the United States government. That means that if you were to trade or barter with a silver piece, it would hold as much value as displayed on the coin.
This is particularly appealing for people looking to invest in silver and gold coins in order to prep for a time when they will need alternative forms of money. Silver will never lose its face value and that is especially advantageous if, for some reason, traditional money does lose its value.
Silver is a real asset for you to have at your disposal because it is, in fact, real money. It will never default, devalue, or be at risk. It’s value is inherent and that is how it has been for thousands of years.
3. Simple Supply and Demand
For the past two decades or so, the amount of silver available to the public has been falling at a very steady rate. Silver has been mined to millennia, and the amount of it that is still available to be mined is dwindling. This clearly has serious ramifications to the amount of silver that is available to the marketplace every year. If there isn’t enough silver to go around to everyone who wants it, there is going to be a major shortage. And this shortage will have an impact on silver prices and resource production.
The good news, however, is that the demand will rise to reflect supply falling. Why is that good news? Well, if you were to invest in silver when while the supply is relatively abundant, you can be in a great position for when supply falls and demands rise. Once that happens, you can get large returns from your small initial investment.
The precious metals market is very volatile, so it’s important to have a diversified portfolio that will come through for you in any scenario. Silver is a great precious metal to ensure that this happens.
4. Silver is Abundant
Silver is a very common metal. In fact, you probably handle things every day that are made from silver and you didn’t know it!
Silver is used widely in the industrial market for a variety of practical uses. You can find silver in electronics, batteries, large industrial equipment, and even jewelry. It is the marker for the modern industry - more than half the current silver demand is used by the industrial market.
The reason why silver is so widely used is that it is one of the most electrically conductive, thermally conductive, and very reflective metals available. Out of all of the elements we currently use, silver is the best one for a wide variety of practices. This makes silver super versatile, which makes it very desirable to a lot of different people in different fields. And this only increases demand, which will be good for your precious metals portfolio.
5. Silver Investment Outperforms Gold in a Bull Market
When people try to compare gold and silver investments side by side, many think that gold always takes the prize. But, that might not always be the case. In fact, in a lot of instances, investing in silver is the real winner.
That is because silver often outperforms gold during a bull market. A bull market is a market in which share prices are rising, which encourages buying. Because silver is at such a low price point generally, when the market encourages buying, people are going to gravitate towards silver. Gold is, of course, very expensive, so those sales tend to favor investments in silver.
The silver market is very small, so when some money goes in or out of the market, the price can be affected a great amount. During Bull Markets when a lot of money is coming into the market, you can expect there to be a lot of gains in the silver market.
Investing in silver is seen as an underdog in the precious metals market, but it can really set your precious metals portfolio apart from the rest. There are so many reasons why investing in silver is a good investment decision, but you have to do what is right for you and your future. Find out more about how silver can fit into your precious metals portfolio by checking out the United States Gold Bureau’s silver inventory or calling (800) 775-3504 to speak with a precious metals specialist.