- Investing in silver is more accessible than investing in gold for most people.
- For the past 50 years, silver and gold have basically moved in the same direction.
- Industries like silver because of its conductivity.
When people think about investing in precious metals, they think of gold. Gold is a phenomenal investment that holds its value. However, silver can be just as dynamic and profitable. Silver provides stability and wealth preservation. Here are some things you may not know about investing in silver.
Silver Is Relatively Inexpensive
Gold is valued at around $1,745 per ounce. Silver is valued at around $25 per ounce.
Therefore, investing in silver is more accessible than investing in gold for most people. It is easier for the common person to buy silver coins or large quantities of silver bars. If you purchase larger quantities of precious metals, you may save a little money on your investment.
Compared to gold, silver is undervalued. Silver is a phenomenal investment for anyone who is looking to invest in something that maintains its value but does not have a ton of money to invest.
A Strong Correlation between the Value of Gold and Silver
For the past 50 years, silver and gold have basically moved in the same direction. In fact, for 39 out of 50 years, gold and silver moved in the same direction.
Industries Use a Lot Of Silver
Industry uses more silver than common people use silver. Silver has several industrial uses. These industrial uses account for 50 percent of the silver used in the last half-decade.
For this reason, economic growth has a larger impact on silver than it does on gold. Worldwide, just five to 10 percent of gold demands come from industrial use. The rest of the gold is used for jewelry.
Silver is sought after by industry because it is strong, malleable, and brilliant. This does not mean that silver does not find its way into jewelry. It is still a popular metal for jewelry. It is also used for tableware. Some of the finest tableware a person can have is made of silver.
Industries like silver because of its conductivity. It has the highest conductivity of any element with heat and electricity. It is sensitive to light and has antibacterial qualities.
The modern tech industry could not happen if it was not for silver. Everything from nuclear reactors to photography to water purification relies on silver. Over the past few years, the biggest consumers of silver have been China, the United States, Canada, Japan, and Russia. The three biggest industries that need silver are the medical field, photography, and solar energy.
People Turn to Silver When the Economy Is Bad
When you look at the world economic situation, you see the growth of several emerging economies, especially in Latin America and Africa.
This growth means that more people need silver for industrial use. It also means that investors are scared because they are worried about changes in the market that could lead to instability.
Silver is where people go when they are worried about the economy or feel afraid of what the economy is going to do. People take their money out of stocks and put it into safe assets like gold and silver. Precious metals historically appreciate in value when people think stocks are too risky. When the economy is doing good, the price of silver stays relatively low.
It Is Best to Buy Silver Coins
One of the best tips for buying silver is to purchase silver coins. Buying silver coins or silver bars is the safest way to invest in silver. Understandably, if you have never invested in silver before, you might be worried that you will get tricked into purchasing a valueless metal.
However, there are several reputable silver distributors that can provide you with silver coins. Purchasing silver coins is safer than investing in silver mining stocks. Silver mining stocks are quite volatile and are considered to be a high-risk investment. However, the precious metal they mine is valuable and keeps its value for the long haul.
Most silver coins are purchased from reputable coin shops or distributors online. Even after factoring in shipping, you can usually get a better deal on silver coins if you purchase them online.
Of course, if you purchase from a brick-and-mortar store, you can see the product and get immediate possession of it. There is greater potential for privacy.
Silver is attractive and functional. It has been seen as a valuable metal for the millennium, making it a solid investment to add to any portfolio.