Silver is a precious metal just like gold, and many people have used it against inflation and as a great technique to mitigate geopolitical, systematic and monetary risks. It is similar to gold in that the metal has retained its purchasing power for ages, making it a great investment.
For many years, it has maintained a positive demand as a currency, investment and store of value. Looking at the silver’s market demand, you will find it flooded by bullion coins, jewellery and industrial products. You will also find silver in stock exchange as a traded product. Its price in the stock market is usually based on speculation. Since both supply and demand are what causes the fluctuations of silver price, this makes it volatile when compared to gold.
There are some factors that make silver a great investment tool, including:
- Silver has been, for thousands of years, used as a currency and a medium of exchange
- The element property of this metal adds value by allowing it extra industrial applications
- Its demand and supply categories give it unique characteristics
Each day, the demand for silver keeps increasing, and although many people might get afraid that the increased demand might prove a high risk to invest in this precious metal, industrial applications have continued to increase at an alarming rate. This only means that even when the market is slow, it will not have a negative impact on the metal.
Since this metal has been in existence for thousands of years, every day brings new uses for silver, which in return, makes its investment demand to increase. However, with increased demand, companies that produce silver are faced with a huge burden of supplying it to customers. They are always facing challenges trying to meet the huge demand created by the increased market value, the need for silver investment and the growing market volumes.
Companies that deal with precious metals are also having a hard time trying to meet the high demand. Such a company includes Indigo Precious Metals, which, as its name suggests, deals in precious metals like silver and gold. With them, you can easily and safely purchase bullion products tax-free to start your investment.
Other Reasons why you should Invest in Silver Include:
It is real money. Along with gold, it is used as the ultimate form of money since it cannot be created from thin air like paper. Silver doesn’t have any counterparty risk since having it in physical form means you don’t need to make a contract with any other party, which is unlike in the case of bonds or stocks.
It has been used as money for a long time as a coin, which is more often than gold. Physical silver ensures that you have a real asset that has, for ages, been used as money.
It is cheap- you can easily purchase silver at 1/70th the price of gold. This makes it more affordable for an average investor yet it is precious enough to help you maintain your living standards just like gold. For a person who cannot afford to buy an ounce of gold, silver is the best alternative if you want to hold a precious metal.
Industries are attracted to its rare characteristics and prefer to use it in their applications. With the increasing industrial use for silver, it is a worthy investment for everyone.