Investing is the only foolproof way to protect your capital and/or grow it, especially considering the fragility of the fiat currencies we use to accumulate money and the events that have happened recently (such as the coronavirus outbreak), which has plunged us into a crisis worldwide and has largely stopped the productive apparatus of many nations. For this reason, many smart investors have decided to allocate their capital to assets that will never totally lose their value and that, on the contrary, can maintain or increase their capital, as in the case of silver. This time we will review three reasons to invest in silver, in order to explore methods to increase our capital.
Silver is an interesting product because it combines elements of base and precious metals. With silver changing to 1 or 2% of gold, it is difficult to consider silver as a precious metal, but its historical importance makes it very important among precious metals. Furthermore, silver has more uses in the industrial sector than most metals, and therefore its value is linked to business cycles.
Disclaimer: this is not investment advice. All the information provided in this article is for educational purposes only. We are not responsible for any decision you make. Always request information to your financial advisor. Never invest more than what you are able to lose.
Three Reasons to Invest in Silver
- Although silver usually remains “in the shadow” of gold, it may be a good option to include it in your investment portfolio. Due to its status as a precious metal, it usually behaves in a counter-cyclical way, during recessions, it generally retains its value, even increasing, to which we would add that for many years it has been a refuge value against inflation. Silver is ideal for starting out in the wonderful world of raw materials, and specifically for investing in precious metals. At the current price, I think it can be a good investment for the long term. This offers us a large number of investment options, each with different levels of risk and reward. Depending on the investment profile we have and the capital available to invest, we will opt for one or the other.
- Investing in silver through ETF’s will save you the cost and worry of investing in physical silver (storing, transporting and storing the precious metal). This is the main advantage of participating in stock markets; the comfort of positioning your investment positions from your computer or mobile device regardless of your geographical location. This procedure will allow you to benefit from silver price fluctuations up and down, as long as you are able to make an accurate analysis of market prices.
- Like gold, silver is a self-worth asset, especially for its metallic content, and no government can control it and politicians cannot influence its value. Silver and gold have been a haven of wealth for at least the last 5000 years, precious metals are much more appreciated in times of crisis and much safer than investing in bonds, stocks or currencies. Recall that excess currency creation, money supply, or liquidity expansion that is nothing more than excessive printing of Fiat money is causing a decrease in the purchasing power of paper money, or in other words, governments are printing so much money that it is losing value day by day, gold and silver cannot be created from scratch like the currencies we currently use, be it USD, EUR, GBP, etc …
In any case, it is recommended that investments be diversified. Currently, there are many opportunities in the markets with assets that deserve our attention, as we can see in the case of cryptocurrencies and even gold itself, which is preparing the ground to mark new historical highs. The investments will make your capital grow without you having to expose your physical integrity on the streets and although you will have to dedicate time to the analysis, you will be able to enjoy moments that you will not have to obtain a common salary income.
