If you have the desire to invest in precious metals, you might want to ask loads of questions to know if investing in one of your option – Silver, is indeed a good investment portfolio to have considering the speculation that goes on in the trading floor.
From time immemorial, silver has always been considered second in value or worth when compared with gold, but that doesn’t undermine the facts that there are enough reasons why investing in silver is good investment to go into.
- In February 1998, Warren Buffett disclosed that he had acquired 130million ounces of silver and stored it in a warehouse. Warren Buffett; at several intervals has made strategic investments in Goldman Sachs, Coca Cola and other companies.
- In September 1998, Canadian business ran an article indicating that Bill Gates has made a buy in silver, acquiring a 10.3% stake for $12million of a Canadian silver company listed on the Vancouver stock exchange.
The following reasons points to the fact that investing in silver is a good investment for any investor to go into:
10 Reasons Why Silver is a Good Investment Opportunity
1. You have less competition
If you compare gold and silver, you would realize that most people tend to invest in gold rather than silver, hence the drop in the price of silver in the market. This is to the advantage of investors that are ready to wait for a while before reaping from their investments, because they get to buy at a cheaper price and most likely sell at a far better price compared to gold in the future.
2. The use of Silver is on the Increase
If you have noticed the trend in recent time, you would realize that the demand for silver in both the automobile, computer and telecommunication industry is on the increase. There is hardly any car, telephone or computer that comes out from the factory without any trace of silver as one of the components used in production. With the increase in the demand for silver, it is only logical to note that the price would increase as well. Silver is considered an industrial metal because of its usefulness in our industries.
3. Silver Thrives More in Crisis
If you are doubting whether to invest in silver or not, you must know that records has it that whenever the Stock Market crashes, and the central banks has to alter tack and flood the markets with liquidity, it is observed that silver always to do far better than other precious metals in the market including gold in periods like this.
4. Silver Has a Hedge against Inflation
It is a known fact that any time that there is inflation in the economy; silver is known to increase in market value with respect to the inflation rate. This is so because the European Central Banks ensures that they put monetary policies in place that puts upward pressure on all precious metal prices including silver and drive the prices upward.
5. To invest In Silver is to Invest in a more Emotional Market
Experts says that due to the upside and downside moves silver has over any precious metal, if you invest timely (i.e. buy silver the right time) and sell at the right time, you get to reap huge profits from your investment. The silver market is considered one of the most bullish markets compared to other precious metal market.
6. You Can Buy Silver below Cost of Production
Due to the competition that exists between silver and gold, plus the fact that gold always comes out tops, the production of silver declines. You might have noticed that in most periods of the year while the activities in most goldmine is on the increase, that of silver is on the decrease because people feel that the demand for silver is far lower compared to the demand for gold.
Any smart investor would notice that the best time to buy silver is within this period because you would definitely get it cheaper price compared to the price of production. If you buy silver at this period for the purpose of stacking them for the future and you are not impatient to sell if off, you would definitely sell at a far higher price in the future.
7. Recently Silver is on the Rise in the Market
If you are a keen observer and follower of the trends in the global precious metal market, you might have noticed that as gold rises; silver rises even faster. So that whenever there is a fall, it is always to the advantage of silver. This should be a concrete reason to invest in silver.
8. Silver Has a Good History
If you are conversant with the history of the ancient times, you would realize that silver has always been one of the components used in measuring the wealth of an individual or a nation. The use of silver cannot be trashed with time, but rather more options of what to do with silver would continue to open up as time goes by. People would continue to improvise, and if you are fortunate to inherit silver from your parents or grandparents, you can still pass them over to your children and your grand children with the potential of the money value to continue to be on the increase.
9. Silver is a Good Means of Preserving Your Wealth
One of the options you have to preserve your wealth is to invest in silver. Although there are uncertainty with the price value of silver per time, but you can be rest assured that stacking silver in your vault is a good way of preserving your wealth. It is important to point out that if the economy of the world collapses, all the money you have will become worthless at that point in time, but the value of the silver in your vault would still be intact.
10. Silver Has Different Buying Options
As the sub topic suggests, you have the option of buying silver in a short term contract in the commodities futures market, or as a long term investor you can buy silver in its physical form. This is one feature that should compel you to invest in the silver business.
Although there are some drawbacks when it comes to investing in silver because of the second fiddle nature it plays with gold; if you are a smart investor and you have all the tools to help you forecast correctly, you are sure to make great wealth investing in silver by just knowing when to buy and when to sell.
The points discussed above is not all the positives about investing in silver, if you take time out to do some more feasibility studies, you would find that there are over many more reasons why investing in silver is a good deal.