There are many irresistible reasons to invest in precious metals. Many people believe that it is the only way to hedge against inflation and save money to maintain purchasing power against a devaluing dollar.
When you think about which precious metals should you invest in, gold is almost a universal answer. However, a lesser-known fact about silver is that it’s just as good an investment and fulfils many of the same roles that gold does in a portfolio.
With all the attention gold gets, there are some key reasons to consider investing in silver, too. Read on to learn why you need to add silver to your precious metal portfolio to reap the following benefits.
Silver Is Generally More Affordable Than Gold
When you compare the price of one ounce of silver to that of an ounce of gold, it becomes clear just how inexpensive silver is in today’s precious metals marketplace.
You’ll need to spend more money for a 1 oz gold coin than you will for a 1 oz silver coin (and this holds even if the price of gold is lower). By diversifying your metals portfolio with an investment in silver, you’re taking advantage of silver’s low valuation relative to gold, making it a more affordable option. You can add to your portfolio without breaking the bank.
Silver Has Many Practical Uses
In addition to being valuable, silver is the most desired metal. That’s because it has not only monetary value but also many other uses around the world. Silver can be used in batteries, solar panels, computers, medical equipment, and more.
Because of this multipurpose demand, silver is even better than gold for diversification purposes. The unique combination of desirability makes investments in silver an excellent choice for individuals building portfolios with precious metals.
Consistent Returns
When it comes toprecious metals, consistent returns can attractinvestors looking for a more diversified portfolio. Silver prices have been surging upward.
The precious metal has been trending toward appreciation. In 2020, the rate of return on silver investments was approximately 47.89 percent. This estimate considered costs of fabrication, distribution, and a nominal dealer fee. Based on current forecasts, it is predicted that silver will maintain its growth as an investment vehicle with additional gains by 2024.
Silver Is a Great Hedge Against Inflation
If you’re worried about inflation or want to protect the value of your assets from economic uncertainties, owning physical silver is a good idea because it has historically been able to maintain its purchasing power. In other words, if inflation occurs and the value of currencies drops due to increased supply, then just owning gold isn’t enough to keep up with inflation.
It will take more gold for it to have the same buying power as before. However, because silver is relatively abundant and prices tend not to be as volatile as gold, investing in silver can help hedge against inflationary pressures without losing too much sleep at night. Of course, you can always buy more of both metals to hedge against inflation in the most optimal way possible.
Final lines
Some people feel that owning gold is enough to protect their portfolio or retirement account from economic ups and downs or currency crises because it tends to be a “haven.” But silver performs those same functions, too, along with other unique advantages such as affordability and industrial demand.
All these facts in support of silver might have cleared the confusion on which precious metals should you invest in.
Remember, it’s not that silver is complimentary to invest in along with gold, but it’s the best way to leverage the several benefits that investment in silver brings with it.
