IS SILVER A GOOD INVESTMENT FOR THE FUTURE?

Silver has an illustrious reputation as a metal both for and from high society.  Whether you consider its use in jewelry, coins, or even technology, silver has outlasted many of its competitors as a prized and precious commodity.

 

As a noble metal, silver maintains a natural resistance to corrosion and oxidation, while simultaneously acting as a great thermal and electrical conductor. This is why you might have heard about all that silver stuffed into your television or smartphone. Because of these practical and unique characteristics, the demand for silver’s use in technological and electrical applications has only grown through the past few decades.

Considering silver’s incredible capabilities and uses in various products, technologies, and industries, it should seem like a no-brainer that silver is worth owning. But just because it maintains this intrinsic utility, is silver really a good investment for the future?

CONS OF OWNING SILVER

Lack of liquidity

The price of silver can go down at any point in time, just like any other investment, and the ability to sell in a hurry can be an issue. In a jam, pawn shops and jewelers are an option, but not necessarily the best-paying one.

The danger of theft

Unlike most other investments, such as stocks, holding silver bullion can leave investors vulnerable to theft. Securing your assets from looting may incur other costs, including a safety deposit box in a bank or a safe box in your home. Additionally, the more physical assets that reside within your home, the more you’re at risk for burglary.

PROS OF OWNING SILVER BULLION

Silver is tangible money  

While cash, stocks, bonds, and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. Silver bullion, on the other hand, is a tangible asset that is real and finite. This means that although it is vulnerable to market fluctuations like other commodities, silver isn’t likely to completely crash because of its inherent and real value.

Silver can offer protection

As mentioned, investors often flock to precious metals during times of turmoil. When political and economic uncertainty is rife, currencies tend to take a backseat to assets like gold and silver. While silver bullion tends to get overlooked in favor of gold, it serves the same role.

Silver offers higher returns than gold

Because silver bullion is worth around 1/79th the price of gold, it is affordable and stands to see a much a bigger percentage gain when silver prices go up. In fact, in the past, silver has outperformed gold in bull markets. From 2008 to 2011, silver gained 448 percent, while gold gained just 166 percent in that same time period.

History is on silver’s side

Silver and gold have been used for currency for hundreds and hundreds of years. That lineage lends the metal a sense of stability. Many find comfort in knowing that this metal has been recognized for its value throughout much of mankind’s history. There’s an expectation that silver will endure while fiat currencies may fall to the wayside.

FINAL THOUGHTS ON INVESTING IN SILVER

Silver has been revered throughout our history as something beautiful with intrinsic value, both of which have been factors contributing to a steady demand for the shiny asset.  Considering the myriad of benefits to owning silver, it seems that investing silver is something that all those seeking to hedge risk should consider. Although the returns historically have been lower compared to riskier assets and precious metals, it would appear very clear that silver is an investment you can rely upon through trial, tribulation, and decades of market uncertainty.