Investing in precious metals isn’t as straightforward as it seems. Should you opt for gold or silver? Is it better to buy silver bars or coins?
The answer depends on your budget and the economic landscape. What novice investors should know is that silver has several advantages over gold.
First of all, it’s easier to sell and more affordable. Second, it has a wider range of uses and can be easily sold at a good price.
Also, note that silver production has been declining since 2016. Therefore, its price is likely to increase over the next few years.
Interested to learn more? Here are five reasons to invest in silver this year!
1. Silver Bars Are Cheaper Than Gold
In August 2020, gold price reached a whopping $2,017 per ounce. Silver prices increased, too. One ounce of silver was valued at $26 during the same period.
Sure, these changes were driven by the novel coronavirus crisis, but one thing is for sure: gold will always be more expensive than silver. This makes the latter an ideal choice for the average investor.
Even if you’re not looking to invest in precious metals, you can offer silver for your friends or business partners. A PAMP Suisse silver bar, like the one at https://www.oxfordgoldgroup.com/product/silver-products/pamp-suisse-silver-bar/, meets the highest quality standards and can be a great corporate gift.
2. Silver Has a Wide Range of Industrial Uses
This metal is used in most industries, from health and beauty to electronics. It also plays a crucial role in the photovoltaic industry.
Due to its versatility, silver will be in high demand for years to come. Moreover, its industrial uses will continue to expand. This means you’ll be able to sell it with ease and double or triple your return on investment.
3. The Supply Is Scarce
Silver is becoming increasingly rare. The U.S. Geological Survey reports that more than half of all the silver in the world is found in just four countries. On top of that, the global demand for silver is rising, while the supply is falling.
If you buy silver in 2021, know that it will be worth a lot more a few years from now on. Experts estimate that its price will exceed $30 per ounce later this year. Some say that it will reach a whopping $100 per ounce over the next 12 months.
4. It’s a Physical Asset
Need one more reason to buy silver bars?
Unlike bonds, cryptocurrencies, and other investment products, silver is a tangible asset. Simply put, it’s real money.
Although this precious metal isn’t immune to fluctuations, it’s less vulnerable to inflation than cash. Plus, investors don’t have to worry about cybercrime as it happens with digital assets.
5. Diversify Your Portfolio with Silver Bars
If you’re a seasoned investor, you know that maintaining a diverse portfolio is the best way to balance risk and reward. Silver bars allow you to diversify your portfolio without taking significant risks or spending a fortune.
With this strategy, you’ll protect your investments against inflation and devaluation. Moreover, the value of silver isn’t determined by governments. Instead, it’s based on industrial demand, geopolitical events, and other factors.
Make Smart Investments for a Bright Future
Now that you know more about silver bars, go ahead and assess your options. Buying silver can be a good way to foolproof your future and maintain a diverse portfolio. Plus, this investment is more secure than crypto and has very high liquidity.
In the meantime, browse the rest of our blog for other tips on how to boost your income! We’ll show you what it takes to build your credit score, when to invest in gold, and more.