Major Benefits of Investing In Silver Coins And Bars
When investing in precious metal, Gold and Silver takes the front seat. The latter, silver investments, is often misunderstood by precious metal investors. Yes, they are relative to a smaller market than gold, and yes, they are generally less valuable than gold investment. However, there are several benefits that can make a case for “Silver’s investment profitability” and why all investors should have silver coins and Bars in their precious metal portfolio.
Below are some major benefits of investing in Silver Coins and Bars.
They are a Cheaper Investment
Silver provides investors with an affordable route to physical metal investment. For instance, while a gold investor would purchase a 1 oz Scottsdale Mint Marquee Gold Bar for $2,594.38, a silver can use close to this amount to buy a 100 oz Royal Canadian Mint New Style Silver Bar. This makes Silver coins and bars an ideal option if you can’t afford to buy Gold. In fact, you can enter the silver market for as low as $37.19
Silver Represents “Real” Money
Silver has been used for several decades as a form of currency and a great way to store value. Compared to stocks and other digital assets, silver coins and bars add a level of tangibility to your investment portfolio. You get to touch your investment which is good because it keeps you secured from any Cyber related losses.
They have Historically Out Performed Gold
History charts show that Gold and Silver commonly move in tandem (one behind the other). However, the high volatility rate in Silver would mean that the price of Silver moves quickly compared to Gold.
In this sense, silver bullion is expected to outperform Gold in a bull market. According to Stefan Gleason, “If history is any guide, the remaining bull market in precious metals could see silver outperform gold by a factor of 4 or more”. Many investors buy into this idea during inflation to earn higher returns.
Protection Against Inflation
Like most physical metals, Silver can also be used as a safe haven during inflation and economic uncertainty. You can benefit by using silver bars as an inflation hedge so that while the value of fiat currency, stocks, and bond reduces, your silver coins and bars would increase in value.
Note: Many investors tend to flock toward gold bullion during inflation, but history has shown Silver to increase at a much higher rate. For example, the 1970 financial crisis saw a silver rise by 3800% while gold rose by 2500%. That extra 1300% went a long way in profiting silver investors.
Like Gold, Silver Has An Intrinsic Value
Unlike fiat currencies, the value of Silver is not restricted to what it can be used to purchase.
Billionaire investor, Warren Buffet, believes that Silver satisfies the investor’s quest for valuable assets. According to his fundamental principle of investing, an investor should invest in assets that are useful in serving a purpose or satisfying people’s needs.
In this regard, silver no doubt ticks the right boxes. Its intrinsic value can be felt across different industries and it is useful in manufacturing vehicles, cell phones, solar panels, etc. Chances are high that you have utilized Silver in one way or another.
The usefulness of Silver reassures investors that their silver investment will always hold value.
Diversify your Portfolio
Many expert investors advocate for portfolio diversification to protect against losses (i.e., stock market crash, market manipulation) that may wipe out their entire assets. It is a smart move to diversify with Silver by buying a proportional amount in silver coins and silver bars.
Note: Putting all your savings in a silver investment isn’t a great idea because it defeats the purpose of diversity. It would be best to diversify your portfolio across non-corresponding assets like Silver and stocks.
As you are now more familiar with the benefits of silver coins and bars, the next step you want to take is to contact a reputable precious metal dealer for your silver supply.