There is always doubt in the minds of people if silver is actually a good investment and whether it will reap profits like gold, its more expensive counterpart. But surprisingly, there are several reasons why including silver to your investment portfolio is a smart thing to do.
It is true that silver has a smaller market when compared to gold or currency. But there is a lot of future for it as silver prices will only rise in the future.
Why Invest in Silver?
Top ten reasons you should not have a second thought about investing in silver are:
Silver is Money as Well
Contrary to what some people think, silver is money just like gold. It can be considered a haven as an investment as silver prices are only going to shoot up. But the only real physical form of silver adds value and not any certificate or paper equivalent. Silver is valuable for the following reasons:
- There is no “other party” involvement for this return on investment like stocks, shares and so on.
- There is no chance of default or loss in ownership of silver.
- Silver has been around in circulation for many years.
Silver is a Tangible Asset
Silver is a tangible asset that you can touch and feel. You can carry it with you anywhere, to any country as it is valued as a precious metal throughout the world. In today’s digital world, where cybercrime and hacking are so common, you can rest assured of the safety of your investment with silver.
Silver is Cheaper Than Gold
Silver is only one-seventh the price of gold. Silver prices are ideal for people who cannot afford to purchase gold. They can buy small amounts of silver and add the precious metal to their portfolio.
Silver also makes an ideal gift. It is affordable as well as hard asset that you can hold on to for life.
Silver Comes to Rescue for Small Financial Needs
When you need some cash but not enough to break a bond or sell your gold jewelry, silver comes to the rescue. Silver comes only in small denominations, so you can sell only what you want and when you want to.
Silver Beats Gold in Bull Markets
Silver has a small, volatile market which means that in bull markets, the silver prices will soar very high. Even small amounts of money exchanged will have a huge impact on its price as compared to gold.
Silver is Getting Scarce – Demand is More Than Supply
The silver inventories are reducing to a large extent and most governments don’t have a stock of silver like before. The main reason for this is that the precious metal is itself becoming scarce.
Silver prices fell after 2011 because miners had to reduce costs to get a profit. This created a ripple effect. Lower silver prices led to lower mining of silver which in turn led to lesser supply. But the demand for silver globally has shot up over the years, especially in India and China. This scenario of surging demand vs. scarce supply is favorable for silver owners in the long run.
Silver Heavily Used Industrial Sector
The main reason for the demand for silver to increase is due to its indispensability in the industrial sector. Almost all day to day products we use contains silver, for e.g. batteries, solar panels, jewelry, religious objects, electronics and so on. Mobile phones use about 1/3 gram of silver and mobile phone use is only skyrocketing each year.
Windshields in cars use a small amount of silver as well. Silver also goes into making of plastics and chemicals.
This heavy dependency on silver in the industrial sector is bound to keep the demand for silver high and its ownership very valuable.
Silver Wins in Gold/Silver Ratio
At any point in time, if you divide the price of gold by the price of silver, silver will turn out to be a more profitable buy. Especially when the ratio is a very high number like 70:1, silver will be a more lucrative and bankable asset to purchase and own.
No Risk of Government Confiscation
Unlike gold, there is no history of government confiscating silver in case of any defaulting investors.
Silver Can Be Liquidated Easily
Silver is one precious metal that can be turned into cash very easily and quickly. Even if you own silver as a gift passed on by your parents or grandparents, its liquidation is quite simple.
Silver is a Reliable Investment
You can always count upon silver as a reliable and stable investment. Silver investment has a lower risk with higher benefits, hence it is an ideal choice for the conservative investor.
The above points prove that silver ownership is a great hedge in times of crisis. Its demand is only going to surge and it has all the characteristics to become the golden buying opportunity in the years to come.
Silver Rate in India
Silver has always been a popular investment for the people of India as the country has a big population. In fact, the major demand for silver in India.
Silver Rate in India has exhibited a stable trend as people invest in all forms of silver like coins, utensils, jewelry, and so on. The silver rate in India as of 24th March is INR 41.60 per gram. The silver rate in India for the past 10 days was fluctuating between INR 41.1 and INR 41.6 grams. The historical silver rate in India was in February when it went up to INR 42.6 per gram on 1st February. The silver rate in India depends heavily on international silver markets.
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