Investing can be a great way to put your money to work for you. When done well, it provides the opportunity to increase your initial investment value greatly. There are many different ways to invest, but a growingly popular way is by investing in precious metals like silver and gold.
With silver being a smaller scale investment than gold, many people worry it’s not the best investment to make. However, that might not necessarily be true.
Here are eight benefits to investing in silver:
Isn’t Expensive To Start
No matter which trusted silver bullion provider you decide to utilize, if you’re just starting to make investments, silver is one of the cheaper options available to you. One of the bonuses of investing in silver is that while it’s inexpensive to buy, it’s still a precious metal, which means it will hold its value.
When you’re first beginning to invest and can’t afford gold, silver is indeed a valuable option to choose instead.
Offers Excellent Purchasing Power
Purchasing power refers to the value of goods or services that money can buy. Another benefit of investing in silver is that, like gold, it has excellent purchasing power over time, which means it doesn’t easily succumb to inflation. This makes silver a safe investment because you can almost guarantee you’ll make a profit when you decide to trade off your silver down the road.
No Cyber Risk
With the technological advances we’ve seen in our world today, it’s no surprise that many new investors are choosing to explore it via:
- Digital trading
- Shares
- Paper profits
The similarity between these three kinds of investments is that they aren’t tangible, meaning there’s a risk associated with investing in it. Silver, on the other hand, is considered a hard asset, which means there’s no cyber risk associated with it. Since investing in silver doesn’t involve a huge internet presence, there’s virtually no chance of identity theft, phishing, and other computer or technology-related crimes.
Profitability During Economic Collapse
What’s unique about silver is that its price moves rapidly. When silver prices are compared to gold prices, silver has more of a reputation for being mobile. What does this mean, though? This means that while you can expect a jump in the value of gold during an economic collapse, you can expect an even bigger increase in the value of silver during the same event.
For example, in the financial crisis of 1970, the value of gold increased by 2500% compared to silver’s increase of 3800%.
Protects Against Inflation
Inflation, which is the general increase in prices and fall in the purchasing value of money, will decrease the worth of paper money. That being said, silver (as with other precious metals) remains valuable and therefore serves to protect the reduced purchasing power of the currency.
When inflation hits, the smart investor will gravitate toward silver because it can serve as a form of protection against that inflation.
Silver Is Real Money
No, silver is not part of the general currency, but that doesn’t mean it isn’t real money. Silver, as is true with gold, can be considered the ultimate form of money because it can’t be made easily like paper bills or digital currency.
Silver holds value because of the following reasons:
- If you own silver and want to sell it, there’s no need for a third party to make a contract valid as would be necessary with stocks, bonds, or any other investment.
- There’s no default risk or any risk that a borrower won’t make their payments.
- History has proven that silver can be used in coinage more than gold.
Owning physical silver is a form of asset that can be used as money for years and years to come.
Silver Outperforms Gold
A bull market is a market wherein prices are rising, which encourages buying. In these bull markets, silver has a history of outperforming gold. Since silver is a small market, a small amount of money moving into the industry could impact the price to a higher degree than other precious metals, including gold.
Easy Resell Value Or Opportunity
By now, it should be no surprise that silver is in high demand most of the time. Since silver is incorporated in many products, including solar panels, coins, machines, and batteries, among others, it’s a precious metal that has many uses and therefore is always in demand.
This also means that many industries have continued to utilize silver, so it’s safe to say a need for this precious metal will always be present. While this does mean silver’s price will drop quickly as well, if you wait for the market to grow again, you can sell off your silver at a greater return rate than gold.
Investing Tips
If the above facts have convinced you to go out and invest in silver, there are a few tips you’ll want to follow for the best results:
Understand The Risk
As with any investment, you’ll want to both know and understand the risk of investing before making the decision to do so. While every good investment will involve some level of risk, especially as a beginning investor, it’s a good idea to look for lower-risk investments.
While no investment will come with zero risks, some risks are worth taking, and others are not. Know the difference before beginning any investment venture.
Keep An Open-Mind
Precious metals like silver are not a common investment path, which will make some family or friends question your choice. Don’t let that deter you. While investing in silver might be a scary concept, you shouldn’t fear it because there are so many benefits you could potentially gain from this investment.
Silver may be a ‘safer’ investment, but that’s okay because it will give you peace of mind and an almost guarantee of return on investment.
Hold For Long Term
Since silver is a ‘safer’ investment, that means you may need to hold onto your silver for longer periods. Silver is not a short-term investment. If you invest in it, you should hold onto your purchase for a minimum time, at least five years or so. If you can hang on to your silver for a longer time, it will gain much more value–plus, your money will be protected.
Buy From A Reputable Company
As a first-time buyer, especially, you’ll want to be sure you’re purchasing your silver from a reputable company. A lot of money is going into your silver investment; therefore, you’ll want to be sure it’s going to a reputable source.
Some qualities of a reliable company include the following:
- Full transparency
- Representatives should be well informed, educational, and willing to help make your investment in a smart way
- Companies that handle everything in-house is a plus
- Should be listed by the United States Mint and accredited by the Better Business Bureau
Conclusion
Silver, while considered a precious metal, is still a safety net form of investment. Whether you’re new to investing or a seasoned veteran, silver is an investment you’ll want to take part in because not only is it affordable, but it’s a market that’s growing in demand and almost guarantees a return on investment.
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