Last Updated on Apr 7, 2020 by James W
When it comes to investing your money, you will have a wide range of choices to make. The major challenge is that you may not know which investment option to pick over the others. You have to know what you’re doing when it comes to investing, otherwise it’s like trying to apply for a secured credit card with no credit history.
Buying precious metals is one of the most widely accepted forms of investments. In that light, investing in silver bullion is increasingly gaining popularity. However, with so much hype that surrounds silver, you could be wondering if silver bullion is really a worthy investment.
Today, the purpose is to outline the main reasons why investing in silver bullion is a good option for investing.
Silver Has a Wider Industrial Application than Other Precious Metals
About 50% of all silver is utilized in different industrial applications as opposed to 12% for gold. Many things that we use in our daily life are composed of silver, including electronics, biocides, batteries, jewelry, and solar panels.
Moreover, today’s medical industry depends significantly on silver. Not only for sophisticated medical equipment, like operating room devices, but also the simplest of tools, such as bandages.
Global Demand for Silver is on an Upward Trend
Almost every major government mint has seen a drastic increase in silver sales, with many of them already operating at optimum production. The skyrocketing demand has been mostly experienced in India and China.
These two great markets have, for the longest time in history, been known for their cultural love for precious metals. In light of this fact their populations are also growing at a rapid pace, you can only expect the demand to grow even further.
Silver is Real Money
While it may not be part of your currency, physical silver is still real money. It’s unlike paper or digital money, which can be made from thin air and hence depreciate. In fact, paper and digital investments cannot deliver the kind of benefits you’ll reap from silver investments.
Silver is a store of value, and it has:
- No Counterparty Risk: If you have physical silver, you don’t have to worry about another party making good on a contract. This is unlike other investments, such as bonds and stocks.
- No Default Risk: Physical silver has never been defaulted on. Hence, if you hold it, you are free from defaults, which is unlike most of the other investments that you can make.
- Long-Term Use as Money: Silver has been used as money for the longest time in history, even more than gold. Therefore, having some physical silver is actually owning a real asset that has acted as money over the years.
Silver Beats Gold in Stock Markets
The silver market is so small that even a little money entering or exiting the industry can significantly affect the price. This is not the case with most other properties, including gold.
What this huge volatility means is that silver drops more than gold in bear markets. However, in bull markets, the metal will rise much higher and more rapidly than gold.
For the longest time, silver has remained one of the most sought-after commodities since it has a wide range of uses. At no time, this metal has been worthless; in fact, it beats gold at so many fronts.
Therefore, if you have been wondering whether investing in silver bullion is a good move, this article has given you the answer. Now, you can make your own personal decision.