It is quite natural for an investor to weigh the pros and cons of investing in a particular asset. As a matter of fact, it is considered prudent of them to think carefully before they settle on an asset to invest. This is especially true when they are considering silver because this precious metal doesn’t have the same gravitas as gold and has such a small market. Is it worth it? Mentioned below are the top benefits that investors can enjoy when they decide to add silver to their investment portfolio:
Silver is actually money
Even though silver may not be currency, it is still real money. As a matter of fact, precious metals like gold and silver are considered the ultimate form of money because it doesn’t depreciate like digital or paper currency. However, this is only applicable to physical silver instead of silver-based futures contracts or ETFs. Physical silver is also a store of value and it doesn’t carry any counter-party or default risk and can be used for long-term.
Physical silver is known as a hard asset
In a world of digital trading, paper profits and cryptocurrencies, physical silver is different in the way that you can actually carry it in your pocket wherever you go. In addition, you can keep it as confidential and private as you want as you can purchase it online directly from websites like First Fidelity Reserve and not have to deal with a broker or third-party. You can use physical silver as a hedge against all forms of cybercrime such as hacking.
Silver is not very costly
Who wouldn’t want a hard asset that can still be a store of value and only cost about 1/70th of the price of gold? That’s exactly what silver has to offer to you. Not only is silver an affordable form of investment for every investor, it is still considered a precious metal for maintaining your standard of living, just like gold.
Silver is also practical for small purchases
Silver is not only more practical when it comes to buying, but is also practical when you want to sell it. When you have a small financial need, you don’t want to sell a complete ounce of gold and this is where silver can help. As this asset is available in smaller denominations than gold, you can sell it one at a time when there is a need.
Silver does better than gold in a bull market
As silver is a very small market, even a small movement of money in and out of market can have an impact on the price and more so than it does on another asset such as gold. In bear markets, this volatility means that silver will fall more sharply than gold, but in bull markets, silver can soar faster and much further than gold. This happens quite frequently because the silver market remains quite small.
These are some excellent benefits that every investor can enjoy by investing in silver.