Precious metals are important to not only our economy but our history. Wars have been waged for them; loves have been gained with them. Without precious metals, the world would be much less interesting and a lot less shiny.
With such a historical significance, it is understandable that silver and gold remain one of the most valuable and investable metals on the market. While gold has its benefits and uses, silver can also be a solid investment in your future.
Silver has a rich history and a bright future. Below you will find the pros and cons of owning the metal and a few ways to invest. Investing in silver is much more than diversifying your portfolio, it is like buying a piece of history and investing in your future in one fell swoop.
Silver Versus Gold
In a head-to-head battle, silver and gold both have pros and cons that should not be ignored by even beginner investors. While the economy quakes, silver and gold will shine into the future. Morgan Stanley provides an interesting take on the debate here. Both are great options for investors looking for a way to ensure a bright future despite the shaky economy.
Silver is tied closely to the economy because it is commonly used in heavy machinery and technology, such as in tablets and smartphones, but is valued just as highly in jewelry making. While they both have had solid gains in the past, silver rises more often because of its heavy use in machinery and technology. Unfortunately, it also sees larger falls than gold, making it a more volatile market.
While they are both used to diversify portfolios, gold is seen to diversify more because it is used less in industries and technology. That said, smaller investors can more easily purchase stock in silver than gold. It is more widely available to larger audiences and can be found as easily as looking for U.S. coins minted before 1964.
The Cloud’s Silver Lining
While both metals are a great investment, silver is generally easier to find for smaller investors. Any quarter, dime, or nickel dated before 1964 has a significant amount of silver, while modern coins have only trace amounts. This is part of the reason coin collecting is popular.
Silver also has a wider array of uses. Being connected to different markets does have some perks. If the jewelry market were to ever collapse, silver will still be viable through its uses in technology and heavy machinery. While the idea of jewelry becoming a thing of the past is strange, millennials have had an intense effect on the diamond market by simply deciding they were not worth the cost.
That said, silver has been seen as a safe investment for an exceptionally long time. People have been exchanging the metal for centuries and hoarding it for even longer. There is a rich history of pirates and barbarians stealing away the metal that, until recent years, had little use beyond its luster.
How to Invest in Silver
As stated above, one way to invest in silver is by looking at and collecting coins. This is a great way for investors with lower buying power to begin investing in the metal. For those with more disposable income, the options are more varied.
If you are interested in the thought of owning a physical amount of silver, it is possible to buy silver bullion, which is like silver bars on a smaller scale. You can also purchase jewelry that can have the potential bonus of precious gems along with metal. Investing in jewelry can have its drawbacks, as styles change so quickly, but if it is pure silver, you can still count on it being worth its weight if its looks do not provide a sound investment alone.
One downside of this idea, as pointed out by The Balance, is finding a place to store the metal. Silver can be heavy in large quantities and while having a seaside cave full of precious metal, coins, and artwork sounds fun, it is best left to childhood dreams.
Another way to invest in silver is by buying stock in silver mines. For someone who is already invested in the stock market, this will diversify a stock portfolio by putting money into a more physical company. These mines generally produce more than silver in their mines and can be counted on to keep producing other precious metals should the silver be depleted. They can use the profits they gain through investments to increase the output of their operation, which in turn raises the price of the stock.
By buying silver mine stocks, you can have an impact on the mines themselves which will, in turn, have a positive effect on your investment. This active relationship is what draws many to buying stock in mining ventures for various precious metals, including gold and silver.
There are many great ways to invest in silver. It is important in multiple industries and will be worth its weight even if your jewelry purchases do not look as stylish in the future. By investing in silver, you are taking stock in a piece that is reliable even through an economic collapse. Humans have invested time and effort into silver for centuries and the trend is likely to continue.
While silver is a great investment, it does have its downsides. It can be hard to store and expensive in large quantities. It does provide diversity in portfolios that depends on more than human’s interest in shiny metals as it is used in heavy machinery and technology. This does mean its price can rise and fall more quickly than gold or other investments.
Like all investments, silver has its pros and cons, and it should be weighed against other potential investments. Whether you are looking for a physical asset or stock, silver has many options for potential investors and can be relied on in troubling times.