When it comes to investing in precious metals, everyone only seems to notice the much more expensive gold, but little do people know that silver can actually be a better investment if you handle it properly. There are several advantages that silver has over some of the other forms of investment, and you will be learning about some of them in this article.
It Is A Real Asset
Just like other precious metals, silver is a real asset and will always have value, unlike stocks that is purely based on speculation. Regular stocks will always have a risk of devaluing and even becoming worthless if the company that it represents goes bankrupt. The price of silver may go up or down as a result of the market demand, but it will never devalue like currency does; silver will always have an inherent value within it.
It is A Good Hedge Against Inflation
Just like other precious metals, silver is an accepted form of currency all over the world, so this makes its value resistant to the effects of inflation, or the devaluation of a nation’s currency. So, it does not matter where you are in the world, the value of silver remains constant even if your paper money is rapidly losing its purchasing power (as can be seen around the world in recent years).
It Is A Highly Liquid Investment
If you have a traditional 401k, then you know just how hard it is to withdraw your money from your account without getting charged a lot of different fees. But if you invest a part of your retirement funds in silver, you can easily convert it into cash whenever you need it.
It is More Affordable Than Gold
With gold prices hitting record levels, it has become too expensive for a lot of people to invest in large amounts of gold. Silver on the other hand, can provide the same wealth protection and hedge against depreciation that gold does, but since silver is a lot more affordable, more people can afford to buy it in bulk.
It Has A Good Supply and Demand Fundamental
Because the amount of silver mined every year is less than its demand in various industries. So as the world’s supply of silver get lower every year, its price will only go higher. It’s a great time to invest in silver now while the prices are still relatively low.
Its Price Is Highly Volatile
The price of silver can fluctuate rapidly, making it a more profitable investment option than gold, but this also means that it can get lower faster as well. However this is a short-term view. As an investor you should be looking to invest for the medium-long term. You investment will rise in value over that time-frame compared to a short-term view.
It is recommended that you only use silver as a hedge to diversify your portfolio, so just like any other investment don’t put all of your eggs into one basket.
These are just some of the many benefits of having silver as an investment. If you are thinking of buying in silver, or using it as a method to protect the value of your assets, then you should get some right now while the prices are still relatively low. Over the long term, silver may just prove to be the golden boy of precious metals.
Originally posted 2017-01-08 07:38:59.