Earning monthly, and annually may not give you the financial freedom you desire—a series of investments do.
To increase your wealth, you must look for investment opportunities. Investing in silver is a great way to start.
You’re probably wondering what you can gain by investing in Silver. Well, this article – “Is Silver a Good Investment” explains what you stand to gain. It also clarifies the worth of Silver and if it is better to invest in Silver or Gold.
In addition, reading through this piece – you will find different ways you can invest in silver and how to get started. To catch a glimpse of how these questions are duly answered, glance through the table of contents below.
Is Silver a Good Investment in 2021?
Silver possesses unique strengths and weaknesses that set it apart from other precious metals although it has the same attributes.
The U.S Geological Society posits that silver may be the first element on the periodic table to go into extinction. Despite this revelation, Silver still attracts heavy investor demands.
The big question remains -why will anyone wish to buy a precious element rumored to go into extinction?
Well, the precious metal – silver is seen as a safety net just like gold. Silver and gold act as safe-haven assets that protect investors in times of uncertainty.
Basically, it is a great option for individuals seeking to preserve their wealth. This metal has become more prosperous in recent times with its prices rising daily.
And, it is not unusual for you to wonder if is worth investing in Silver? Let’s see the next paragraphs for a thousand reasons why it is worth investing in silver.
Is It Worth Investing in Silver?
No investment is 100% guaranteed. There are possibilities of either a negative or positive outcome. What investors do is brace up for the risk-reward situation.
For many people, silver holds value in financial hard times. This assumption they make without taking into consideration that 56% of silver supply goes to industrial use.
Investing in silver is worth it although it comes with its own risk, which is a norm with any other investment. Basically, silver is more volatile in down markets than its sister metal -gold.
Generally, it’s worth investing in sliver because this precious metal holds value during market lows and increases in value during bull markets.
However, investing in silver comes with its risks since it is not immune to a sell-off during a financial crisis.
Risk Factors for Investing in Silver
Some of the challenges that may affect your investment in silver include the following:
- Demand: As a top industrial commodity, it is subject to the whims of demand.
- Random price fluctuations: Demand for silver globally affects silver prices, and if you lose track of world commerce, surprise losses may happen.
- Supply: When supply outweighs demand, there could be downward pressure on the price of silver.
- Inflation: The value of silver rises as inflation rises.
- Government policies: Changes in government policy may affect silver prices.
This is so much risk for investment in silver, you’re probably wondering if Silver is a good investment for you in 2022? See top secrets about silver that explain why it is worth investing in silver below.
Top Secrets for Investing in Silver in 2022
Historically, adding physical silver to your investment portfolio right now is not just worth it but vital. In fact, silver investors can now earn monthly income from physical holdings – this is unheard of in the precious metal industry prior to this moment.
Well, as the price of silver increases rapidly, here are some reasons you should invest in silver now.
#1. Silver is Real Money – Real Money is Silver
Although silver is not enlisted as any type of currency, it is an ultimate form of money. This is because it can depreciate like paper or digital currency since it is created of thin air.
Unlike bonds and stocks, owning physical silver means you don’t need a third party. In fact, you do not run the risk of defaults, and you can use the money when you want.
Owning a silver means you have an asset that has been in existence for years. And, historically- silver has been used as a money medium more than its sister metal, gold. Silver has been used as money for thousands of years.
#2. Silver is Cheap
You can get silver for less than its sister metal, gold, yet it offers the same protection from crises. Basically, silver is inexpensive and currently undervalued.
This means investing in silver right now means purchasing a precious metal that can boost your stand of living at a cheaper rate.
In the US, the swings in silver are in favor of silver investors. So, it is a great time and opportunity to purchase silver; especially if you can’t purchase an ounce of gold an ounce of silver is quite affordable and the lowest at the moment.
#3. Silver is a Hard Asset
Basically, 90% of your investment come as paper profits, digital trading, and currency creation. But, silver is one physical asset you can hold, touch, and feel.
If you wish, you can have some in your bags wherever you go. Silver is a private and confidential asset that poses a hedge against all forms of cybercrime; especially, hacking.
#4. Silver Outperforms Gold in Bull Market
Obviously, an ounce of gold cost more than silver yet, silver soars much faster than gold in bull markets.
Although silver is more volatile than gold, silver gains more in the biggest precious metals bull markets. See the table below for stats.
|Gain from 1970 low to 1980 high||Gain from 2008 low to 2011 high|
#5. Demand for Industrial Use is Growing
Virtually every product you use today contains silver. Silver is used across industries like electronics, medical applications, batteries, etc to produce daily.
Mike posits in his book that silver is an indispensable metal and that industries gobble up a major part of global silver demand. Silver is more electrically conductive, thermally conductive, and reflective – this makes the demand for silver skyrocket daily.
#6. Fall in Silver Inventories
Most governments do not have stats on this metal. They have lost track of stockpiles of the metal. Prior to this time, most governments and institutions take inventories of silver traditionally. Since coinage is no longer made from this precious metal, governments do not hold a lot of silver anymore.
And, as demand for silver across industries keeps rising, investing in silver is timely and worth it for future industrial needs. There is a fall in silver inventory since 1996.
#7. Demand for Silver is Growing Globally
Aside from industrial demand, there is an increase in demand for silver across the globe. Historically, China and India have been the behemoth market for these precious metals. As their population keeps growing, the demand for silver keeps skyrocketing.
A look at the graphs below will reveal that there will be a surging demand with a crimped supply. If you have physical silver, sooner or later, the market demands will be in your favor.
#8. It Is Better to Invest in Silver or Gold
Generally, the silver/gold ratio gives a clearer view of which metal is the better buy at any given time. During the 20th century, the gold to silver ratio averaged 47:1 and 61: in the 21st century.
In 2011, the ratio sank to almost 30 at the peak of the bull market. This shows how much silver outperforms its sister metal gold. In fact, this reason and more that will be listed in the table below make silver the buying opportunity of the decade.
The table below summarizes the advantages and disadvantages of investing in both gold and silver.
|Silver investments- Pros||Silver investments – Cons||Gold Investments -Pros||Gold Investments -Cons|
|Silver is cheaper than gold||Silver is a poor earner||Hedge against inflation||Gold pays no yield|
|Silver can be sold in smaller increments||It’s not liquid||Portfolio diversification||It involves trading and storing costs|
|It is a bullish asset||Physical silver can easily be stolen||Start with a small amount||Its short-term is quite volatile|
|Silver is better than money||Easy liquidity|
#9. Silver is more practical to sell
Aside from being cheap to buy, it is more practical to sell. Silver frequently comes in smaller denominations than gold. This allows you to sell only what you need to sell at a time.
#10. Supply for silver would soon drop
After the price of silver dropped significantly, miners reduced costs to make a profit.
Exploration and development of silver mines were tremendously cut down. Over the last three years, there has been a drop in silver supply for the first time since 1991.
Currently, base metal operations have created by-products of nearly 2/3 of the silver mine supply.
The availability of new metals in the marketplace is being affected by this. There is going to be a peak in silver supply as a result – this will favor investors big time.
#11. You can earn monthly income from owning silver
West Hills Capital Silver Deposit Account offers a special program that allows you to earn a significant income monthly.
The amount you earn depends on the amount of American Silver Eagles you have on deposit.
Basically, the more coins you have in your account, the more your earning potential increases.
#12. There is less silver on earth for investors
The amount of silver on earth will not meet investors’ demands. So, the earlier you invest in silver- the more chances you have to earn more from it.
#13. Silver is second to oil as the world’s most useful commodity
Aside from oil, silver is one commodity that is quite beneficial across industries in the world.
How to Invest In Silver?
Investing in silver can be done in several ways. Basically, you can either buy physical silver, purchase silver-based securities, or purchase contracts for a difference.
Physical silvers can be bought as bars, coins, bullions, silverware, or jewelry. You can also choose to buy physical silvers as bags or junk silver.
Purchasing silver-based securities allow you to buy silver-related stocks, futures contracts, or silver exchange-traded funds.
On the other hand, investing in silver by purchasing CFDs gives you a chance to gain from a change in the price of the asset without claiming ownership of the asset.
You can purchase these either from traditional brokers or online brokers. Read on for some online brokers that allow you to invest in silver.
Where to Invest in Silver?
Online brokers offer you a better environment where you can research, purchase, and track your silver investments.
Some top online brokers you should consider in 2022 include the following:
Wondering if silver is a good investment? Try investing in silver through TradeStation. This web-based platform is best for casual traders and it offers innovative data analysis, indicators, and asset tracking tools.
You can choose to buy bonds, ETFs, futures contracts, or cryptos. Interestingly, you get these tradable assets alongside educational tools and resources.
#2. TD Ameritrade
This is a top-ranked online broker. If you invest in silver through the online company, you are bound to enjoy a stellar package of platforms, tools, analysis, research, trader apps, and educational materials.
Clients can trade stocks, ETFs, mutual funds, bonds, options, futures, and currencies. Click the button below to get more information.
#3. First Trade
Unlike its competitors, First Trade doesn’t charge contract fees. Here, you can trade your silver-related stocks, ETFs, and futures for free, and options.
This online broker is best for individuals who wish to trade without flipping back and forth the brokerage tab.
This online broker makes investing in silver a good idea because it offers options for trading on the market. This offer starts at just $0.10 per contract and $1. 99 per transaction.
Check out options to learn why silver is a good investment in 2022.
This is a great option for trading silver-related options. Power E*Trade offers a platform and exceptional mobile app that suits casual and active options traders.
You can get a $0 trade for stocks, and ETF trading. Also, you may get $0.65 per contract for options and $1.50. per contract for silver-related futures.
What Will Silver be Worth in 2030?
According to World Bank predictions, the worth of silver in 2030 may be $13.42/toz. The forecast posits that there may be a significant drop in commodity price in Silver’s worth in 10 years.
Generally, the prospects are good but there are tendencies that gold will drag down its sister metal due to the investment of silver as billions.
Well, if industrial demand continues to rise, then silver may have some protection for the price.
Investments come with a lot of risks. But studying the market will give you leverage to make better choices.
Currently, silver is a good investment following the crunch that may arise in a few years as demand outweighs supplies.
Although it is a good investment, its worth in 10 years can’t be categorically predicted following the impact of the pandemic.
It is wise to read through the thoughts of financial experts before making that big move. This article garners all the essential information you need to understand before investing in silver.
Find answers to if Silver is a good investment, why you should invest in silver, and where you can invest in silver immediately.