Is It Worth Investing in Silver?

Investing in Silver

Many people invest in gold. In fact, you might already be one of them. But what about investing in silver? It obviously also has monetary value. And yet you rarely hear about people investing in it. Given the opportunity, should you invest in silver?

Silver is Cheaper Than Gold But Offers Higher Investment Returns

It’s actually surprising that you don’t hear more about people investing in silver. A lot of people certainly do so. One major reason why is that silver is cheaper than gold. And yet, according to Investing News, investing in silver gives you higher returns than investing in gold does. That seems like a win-win situation.

The value of silver has risen steadily in recent years. The value has grown considerably more than gold’s value (although gold has also risen in value in the same time span.) If you’re looking at the market’s trends, then it certainly makes sense to consider investing in silver.

Other Benefits of Investing in Silver

Some of the other reasons that people think that silver is a good investment include:

    • It’s easier to break up than gold. Imagine it this way: if you ask a store to break a $100 bill or a $20 bill, they’re significantly more likely to be able to do the latter. It’s the same way with gold and silver. Yes, both have value and you can spend both. However, spending silver might be easier.
    • Silver is generally a safe investment. Whereas many other forms of investment rise and fall considerably over time, investment in both gold and silver tends to be steady, predictable, and protected. Therefore, if you’re risk-averse, you might find investing in silver to be a relatively safe choice.
    • Silver inventories are falling around the world. Supply is about to fall while demand is growing. Therefore, silver may rise in value. You might want to have what others don’t.
    • Sometimes people want to invest anonymously. Investing in stocks doesn’t allow you to do so. However, investing in cash, gold, and silver gives you that choice.

Drawbacks of Investing in Silver

Of course, any type of investment comes with risks and drawbacks. Here are some things to think about before you make the decision to invest in silver:

  • It’s a tangible commodity which can make it easy to steal. If you keep your silver coins or silver bullion at home, then it’s the same as keeping cash at home. Someone could steal it. Moreover, you would have very little ability to recover those losses. Of course, you can always use safe deposit boxes and other forms of security to protect your assets. But compared to digital investments, silver is at greater risk of theft.
  • Even though it’s like cash in some ways, you can’t take silver bullion to the store and spend it. In other words, its liquidity is limited. If you are new to investing then this might concern you. That said, many forms of investment have limited liquidity so this shouldn’t be a deal breaker for most people.
  • There is always a risk with any investment. Silver is no exception. Silver’s value can change with time. Although history indicates that silver is a stable investment, it’s always impossible to know what’s around the bend. Therefore, if you’re risk-averse, and investing in general scares you, then investing in silver will scare you, too.
  • Inflation may affect the value of silver over time.

What do you think? Would you be more likely to invest in gold or silver? Or in some other form of investment altogether?

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