Over time, people and markets the world over have been able to establish that investing in precious metals is a great way to diversify your investment portfolio. Whether you’re talking about gold, silver, or platinum, there are a handful of ways to get started in owning precious metals.
Like gold, silver is a naturally occurring metal. Although the former is perhaps more sought after, there’s no reason why silver shouldn’t be included on your list of precious metals in which to invest. Silver is, in particular, a great way to do this—and for a handful of reasons.
The current financial situation allows us to look back at the history of silver and gold and see that there are compelling reasons to invest in physical silver—one of which is the fact that prices will rise. Here are the 10 reasons why you should invest in silver coins.
1. Physical Silver Is a Physical Asset
When you think about investing, how many of your investments could you hold in your hand? If you’re investing in stocks, there’s nothing physical to touch. If you’ve invested in bonds, there’s nothing there that is tangible either. Much of what’s being made through modern investments is on paper and not hard, physical assets. Physical silver you can carry with you, even if you go overseas. By investing in silver coins, there’s no way any cyber-crime or online hackers can get away with your money, and it’s more than a promissory note.
2. Silver Is Both a Precious Metal and Real Money
Although not many of us trade and barter anymore, we do use the currency. While silver is not a current currency, it is still real money. Paper money isfiat-based. That means it’s the faith in its value that gives it worth. Silver cannot be created out of thin air, and it cannot depreciate the way that paper currency can. This is also true for gold, which is why investing in precious metals is such a good idea.
3. Silver Is Cheaper Than Gold
Silver is significantly cheaper than gold, about 1/70 of the price, and it can still hold strong and protect you from a financial crisis. If you’re not able to buy an ounce of gold, you’re still able to purchase silver and say that you, too, have been investing in precious metals. Silver coins make a great gift, and since you’re likely not looking to spend more than $1,000, and yet still want to have something to hold onto, silver coins are the way to go.
4. In Bull Markets, Silver Continues to Outperform Gold
The silver market is not that large. It’s small enough that moving a little money in or out of the market can impact the overall value of the price, more so than other metals, including as gold. There is more volatility, which means that in bear markets, the value of silver will drop more quickly than gold. In bull markets, however, silver continues to climb more rapidly than gold.
5. The Amount of Silver in the World is falling
Traditionally speaking, institutions and governments have held silver inventories, but these days, not so much. The handfuls of countries that do keep some sort of stockpile include Mexico, India, and the United States. So much silver is going to industry these days that many governments don’t hold silver since currency coins are not made from it anymore.
6. More and More Silver Is Being Used in Industry
Every day, we’re surrounded by-products that have some silver in them. In nearly every company and industry, silver is being used in electronics, batteries, medical applications, and even solar panels. Most notably, silver is in every cell phone. Silver conducts electricity well, which is why it’s used in so many various forms across so many different industries. Things today would not be nearly the same if we didn’t have silver.
7. World Demand for Silver Is Increasing
Because of the existence of so many technological products we use and the ever-increasing numbers of the human population, the demand for silver continues to grow. With less silver available to the growing demand, there will be some noticeable changes in the market. With massive operating markets like those in China and India, the demand is bound to continue to grow.
What about the supply? Well…
8. The Supply of Silver Is About to Fall
If you don’t already know, silver crashed after peaking in 2011. During the span of the subsequent five years, silver dropped a massive 72.1 percent. Miners struggled to keep costs down to make money. There were no further plans for silver exploration. If you’re a business trying to save itself and not actively look for silver, the supply will be lower.
9. Anonymous, with Silver
As the world continues to move further and deeper online, there are components of privacy that will likely never be re-attained. Knowing that you can have a tangible monetary value without having your name attached to it can be a very important thing to some. Privacy, especially in the online world, is more important now than ever.
10. A Final Note to Consider
Just as with anything of worth and value, understanding the big picture is important. While silver is a good investment, particularly for those who want a little something tangible that diversifies their investments, remember that it’s not immediately liquid and available to use. It’s not something you’ll be able to exchange for a few bags of groceries; there’s a small time frame on transactions.
AtSwiss America, we understand the ins and outs ofprecious metals and have decades of experience offering great customer service, pure and beautiful quality, at fair and market-value rates. If you’re considering buying silver coins, chat with us.