An investor must contemplate the pros and cons before investing in anything, especially when buying precious metals. You need to know what you are doing before investing your money into it since the market for precious metals is highly dynamic.
While other types of precious metals like gold and platinum can prove to be expensive for new investors, silver becomes a viable option if you want to begin investing.
Silver has a plethora of industrial applications, making this a practical and safe investment.
Moreover, due to silver’s easy availability in the markets, you can even buy it online from reputable websites such as goldstackers.com.au. Such online marketplaces are authorised distributors of investment-grade precious metals.
Here are some of the fundamental reasons why investing in silver is a good option.
1. Physical Silver is a Tangible Investment
Out of all the investments that you can make, how many of them can you hold in your hand?
In a world of digital assets and ETFs, silver is an asset that you can keep at your home safely without having to trust any third party.
This makes silver a tangible asset, and it is safe from any form of cybercrime. Moreover, having an investment in hand gives you an un-match assurance.
2. Silver is Affordable
Silver costs a fraction of gold, but it will hedge you against inflation just as well. Silver is more affordable for many people. Yet, its precious metal status would hedge your money from inflation and help you maintain a standard of living during monetary dilution.
So, if you are new to investing and can not afford to invest a large amount of money in gold or platinum, silver is the option to consider.
3. Silver is Easier to Sell
This precious metal is much easier to sell than any other metal. Often silver comes in smaller denominations, so whenever the need arises, you can simply sell as much as you need rather than having to sell whole bullion.
Consider purchasing silver bars of various sizes to diversify the denominations when buying silver.
4. Silver Outperforms in Favourable Market Conditions
Silver will soar much better than gold if the market grows steadily or goes through a bullish phase. For instance, in the bullish phase after 2008, the prices of gold increased by 166% in three years. On the other hand, silver’s price increased by a whopping 338%, as per a leading investing platform.
So, whenever there is a bullish market, silver will consistently outperform gold.
5. Increased Industrial Use
You might find it challenging to believe, but you do not go a single day without using anything that has silver. For instance, silver is used in making circuit boards for your mobile phone. On average, an iPhone can have up to 0.34g of silver in it.
In a book by investor Micheal Maloney, he calls silver the most indispensable metal as it can conduct electricity and thermal energy.
Owing to such characteristics, industrial use of silver will never decline, but it will continue to increase.
These are some of the reasons why investing in silver bars, coins or billions is an affordable and safe choice for seasoned and amateur investors alike.