7 Benefits Of Investing In Silver
A survey carried out in late 2020 discovered that over 11% of Americans own silver – highlighting that more and more people see silver as a prudent investment.
Silver has been used for centuries as money and its value can be considered to be more stable than gold or other precious metals. It also has the benefit of being easy to trade and buy in small quantities which can make it more accessible to people who are just starting out with investing.
Understanding the Benefits of Silver as an Investment
1. Silver is cheaper than gold, but still fights inflation
The price of silver usually averages about 1/65th the price of gold, but it still has better inflation-fighting properties than cash. Cash is not a very good way to protect your wealth because it loses value over time. Silver, on the other hand, can keep up with inflation better than cash.
At the time of writing this article (January 2022) silver is costing a whopping 80 TIMES LESS than gold, with gold having a spot price of $1,818 – versus silver at just $23.
2. Silver is a valuable hard asset
How many of your investments can you actually hold in your hands?
Physical silver stands out in a world of paper gains, digital trading, and currency production as one of the few assets that you can take in your pocket anywhere. Physical silver also acts as a deterrent to all types of hacking and cybercrime.
A SILVER EAGLE COIN, for example, cannot be “erased,” but it is possible to do this with a digital asset.
3. In bull markets, silver outperforms gold
Silver has been a popular investment for centuries. Despite its reputation as “poor man’s gold,” silver has outperformed gold in five of the last six bull markets. Investors who buy and sell over time have come to realize that silver offers the same potential upside as gold, with less downside risk, making it a valuable asset to add to portfolios such as a precious metals IRA.
4. Inventories of silver are decreasing
The less of anything there is of a precious metal, the more valuable it becomes and global mining production declined for the fourth year in a row in 2019, according to CPM Group.
According to most predictions, silver mine output will decline by at least 10%. Primary silver company mine production has declined by 3.8 percent as well.
5. The use of silver in industry is increasing
In the past, silver was primarily used for coins and jewelry. Nowadays, it is used in many industries such as electronics and medicine. In 2021 global silver demand was 1.29 billion ounces, and it is expected to be even higher in 2022.
Silver has many properties that make it very useful for different purposes. It is a good conductor of electricity and heat which makes it an attractive option for engineering purposes. It can also be combined with other metals to create alloys like brass or bronze which are more durable than pure silver.
6. The global demand is increasing
Despite the worldwide pandemic’s impact, global demand for silver is increasing.
Almost all country’s main government mints have recorded record sales, with the majority of them now above capacity. China, more than any other country, is experiencing a surge in demand.
This massive market has a long history of cultural attachment to precious metals. And, as its population grows (opposite to what is happening in the West), so will its huge hunger for precious metals – including silver.
7. Silver is a legitimate currency
Finally, silver has many benefits as a real, legitimate currency.
• There is no danger of a counterparty – as in, you don’t need another party to fulfill a contract or pledge if you have real silver. This isn’t true of stocks, bonds, or almost any other type of investment.
• There has never been a default on this type of precious metal. There is no default risk if you hold real silver. That isn’t the case with practically every other investment you make.
• It may be used as money for a long time. According to historic records, silver has been used as currency more often than gold.