When you think of investing in metal, you might think about gold first. Yet silver has a long relationship with money — and investing.
The famous ‘pieces of eight’ of pirate stories were silver Spanish dollars. The Victorians combined their love of technical innovation and silver through electroplating objects to boost their value.
Silver hasn’t lost its investing sparkle. It still makes an excellent addition to your portfolio.
Wondering why you should invest in silver right now? Read on to find out.
1. Silver Will One Day Run Out
Silver holds its value because it comes from a finite supply. Silver mining is set to decrease and much of the silver already mined has been lost. By comparison, gold still exists within private holdings or jewelry.
With a higher demand for silver than the available supply, its value will continue to increase.
2. The Metal Has Many Uses
As an excellent conductor of electricity and heat, silver also has many uses beyond money or an ornamental role. It’s often used in electronics and even solar panels, which helps explain its high demand.
That helps to drive up its value, making it an excellent investment choice.
3. Silver Is a Tangible Asset
The global financial crisis of 2008 proved how risky investing could be. Investing in tangible assets became more popular because these physical items held their value.
4. The Gold-to-Silver Ratio Needs to Be Revised
The Gold-to-Silver ratio refers to the comparison between the values of both metals. In essence, it measures the number of silver units needed to buy a gold unit.
The numbers in the ratio have fluctuated since the Roman Empire. 1792’s US Coinage Act decided the ratio should be 15:1.
The ratio has been lower in the past, and estimates of how much metal remains unmined are also lower.
Either the value of gold has to fall, or the value of silver has to rise. Gold’s value is fixed by other variables, meaning the value of silver needs to go up.
5. You Have Many Investment Options
Unlike other assets, you have a range of options for investing in silver.
- Physical silver in bars or coins
- Speculating on the industry
- Silver mining stocks
- Investing in funds backed by physical silver
For the best security, choose physical silver.
6. Silver Is Still Under-Valued.
People still don’t acknowledge the value of silver. Its value hasn’t increased throughout the centuries the way it should have done.
That means you can still invest in silver at a relatively low level. Unlike gold, silver is much more affordable.
7. Silver Has No Substitute
We’ve talked about the importance of silver to industrial and technical applications above. What we didn’t mention is that silver has no substitute.
Manufacturers have no choice but to use silver in their products. With the growth of green technologies like solar panels, demand for the metal will rise. As will silver’s value.
That’s Why You Should Invest in Silver
If you’re asking “Should I invest in silver?” the answer is a firm yes. The value can only ever go up, meaning your investment is a safe one.
Make sure you choose physical silver, not paper assets, to assure your investment’s security.
Keen to learn more about investing? Check out our finance articles for more tips and advice.