Silver is one of the precious metals. Although silver is not as expensive as gold is, it is still one of the most precious metals. It makes a great investment, and whilst most people will stick to the classic style you can see discussed in a Motley Fool Review, there is no harm in diversifying your portfolio. From adding in the classic stocks, to going for silver and other resources, adding more means that if one area does happen to fall then you are fine with your other investments in the long term. With that all said, the following are the top reasons why we should invest in silver coins.
1. Real Money:
Silver coins are real money with intrinsic value. The value relies on the silver content, which is independent of any government’s regulations and promises, in contrast to the paper assets. Therefore, investing in silver coins could be used as a hedge against monetary crises and inflation.
2. Easy To Liquidate:
Silver could be easily bought and sold. Big online stores, such as Amazon, provide silver coins for buying. Also, compared to gold, silver has smaller denominations, which means that we could sell a few to meet our needs without liquidating a bunch of our investment in the precious metal.
3. More Affordable Than Gold:
As silver is much cheaper than gold, it is more affordable. Instead of waiting to have more than one thousand dollars to purchase one ounce of gold, we could buy several ounces of silver for less than one hundred dollars and get the same protection against monetary crisis and inflation.
4. Continues Outperforming Gold in Bull Markets:
The silver market is usually not so large, which means that we could move a little money from the market in or out without impacting the overall value of its price, more so than the other metals like gold. There is more volatility in the markets. It means that in bull markets, the value of silver climbs more quickly than the value of gold, while in bear markets, it drops more rapidly than gold.
5. The Inventories in the Word Are Falling:
Traditionally, governments and other institutions held the inventories of silver; today, however, most governments in the world do not have stockpiles of metals anymore. The countries that still warehouse silver are only the United States, India, and Mexico.
6. Being Used More and More in Industries:
Nowadays, we are living in products with silver more and more every day. Almost all companies and industries use silver, like electronics, batteries, medical applications, or solar panels. Believe it or not, silver is in all our cell phones. Silver could conduct electricity well, and it uses in
many various forms throughout many different industries. In the world today, if there is no silver, lives would not be even close to the same.
7. The Demand Is Increasing:
Since the human population keeps increasing and so many products we use every day contain silver, the demand for silver is growing. Especially in massive operating markets like India and China, demand for silver will continue to grow.
8. The Supply Is Falling:
The silver market crashed at its peaking in 2011, and during the subsequent five years, the price fell a massive 72.1 percent. In turn, miners had to struggle to cut costs down for profit. Therefore, the miners had no plans for further silver exploration and development, and when the miners could not actively look for more silver, the supply of silver will get lower.
9. The Gold-to-silver Ratio Is in Favor of Silver:
This ratio gives clues of which metal is the better buy at a given time, especially when it reaches an extreme number. During the last century, this ratio averaged at 47:1. However, in the 21st century, it averaged at about 61:1. When this ratio goes higher, it makes silver a good buy relative to gold.
All in all, silver coins are an excellent investment as a hedge against monetary crises and inflation. They can make a great addition to any investment portfolio, and should not be discounted simply because it is not gold or oil, or seen as illustrious as the other classic investment options on the market.