Inflation is hitting a 13-year high of 8.26%. The best way to protect your assets from this economic downturn is to invest in physical gold and silver. Not only will precious metals serve as an inflation hedge and financial insurance but will also add diversification to your portfolio.
But why choose silver as an investment, you may ask?
The main reason is that the demand for silver has skyrocketed over the last few years. And in times of a global economic crisis, even more so.At this point in history, there are compelling reasons to add physical silver to your investment portfolio, and the #1 reason is that the price of silver will continue to rise. In fact, silver has quadrupled in price after 2008 and is soon predicted to reach $50.00/oz.
Here are 10 reasons why you should invest in this shiny metal.
1- The Price Of Silver Increases More Than Gold
Why invest in silver? That is a trending question or topic right now and the reasons are manifold.
Silver is a liquid investment and compared with stocks and paper investments, gold and silver are generally seen as safe havens for investment during market instability.
If you think that gold is a better investment than silver, think again, because this shiny metal is the perfect tool for wealth-building and is an asset class you can depend on. It does not disappoint, due to the fact that silver prices do not dip low that often.
If you pay attention to the spot silver price, it increases significantly more than gold does in a bull market and especially in an unstable market.
According to Avi Gilburt, financial adviser and journalist, silver will get to $1,000 via a long-term bull run.
2- Silver Is True “Real” Money
Silver offers the opportunity to move into real money, an actual store of value, with the potential for substantial gains if the current cycle continues.
Silver, along with gold, is the ultimate form of money since it cannot be created out of thin air (and thus depreciated) like paper or digital forms. It is also one of the few assets that you can carry with you in your pocket.
Investments in silver enable investors to protect themselves and their families by acquiring an asset with intrinsic value and thereby insulating themselves from the potentially destructive policies of central bankers.
3- Silver Correlates Positively To Inflation
The fact that silver correlates positively to inflation is extremely important right now, as we are already seeing an increase in the inflation rate (now above 8%).
Specifically, inflation is a decrease in the value of paper money, unbacked by metals, and silver is a well-known inflation hedge.
Investing in silver is a good way to protect your assets in times of economic turmoil and against the ever-present long-term threat of inflation.
4- Silver Is Important For Diversification
Like gold, silver is part of the precious metals asset class and acts as a hedge against a stock market crash, all forms of hacking, cybercrime, and governmental control.
Silver is also a store of value and has retained its purchasing power over long periods of time. Investors often utilize silver as a portfolio diversification tool to mitigate geopolitical, monetary, and systemic risks.
Best is to maintain a good balance between silver coins and silver bars. By doing so, the chances of attracting more attention from investors will increase since a mixture of investments will enhance portfolio diversity.
Examples of popular silver coins are the following:
- Silver American Eagles
- Silver American Eagles (Proof Coins)
- Silver American Buffalos
- Silver Canadian Maple Leafs
- Silver Austrian Philharmonics
- Silver America the Beautiful Coins
- American Silver Eagles
5- Silver Is More Affordable
Silver is more affordable for the average investor and yet, as a precious metal, it will help maintain your standard of living as good as gold.
Some investors like the feeling of getting something for their money when buying silver. $50,000 in gold can fit into your pocket, but $50,000 in silver will fill many Priority Mail shipping boxes.
So, the sheer amount of silver can make some investors feel rich.
The present affordability of silver makes it one of the most undervalued assets in recent memory.
6- Silver Is Financial Insurance
As we now know, the next financial crisis (after the great recession of 2008) is here, and history reveals that those who come out on top after a recession are precious metals investors.
Investments in physical silver or gold protect your wealth and allow it to appreciate significantly. Best of all, both silver and gold are stores of value and something you can physically hold. It will not evaporate into thin air in case of a crisis such as paper assets.
That said, precious metals should be the most essential part of everybody’s investment portfolio since they should be seen as financial insurance.
7- Silver Is More Practical
Silver is more practical when you need to sell your assets because it frequently comes in smaller denominations than gold.
Silver bullion coins and bars can also be sold virtually anywhere in the world. Although a reputable precious metals company will have a buy-back program and offer to buy back your metals for a better price than regular coin dealers.
8- Silver Inventories Are Falling
The majority of the world’s silver comes from nations marked with political turmoil, labor unrest, and undeveloped economies. Mexico and Peru account for the largest share of production, both of which have fragile political systems and primitive infrastructure.
Geopolitical instability and poor infrastructure, in turn, significantly strain silver supplies, predicting a dramatic price increase in the coming years.
9- The Industrial Use Of Silver Is Growing
Modern life, as we know it, would not exist without silver. Due to silver’s rare characteristics, the number of industrial applications for silver has skyrocketed.
In-demand consumer products such as cell phones, cameras, laptops, mirrors, solar panels, batteries, and monitors all contain trace amounts of silver.
Silver is everywhere, whether you see it or not.
As our information age progresses and silver’s chemical uniqueness is more fully understood, demand for this irreplaceable metal is expected to rise even more.
10- The Gold To Silver Ratio Is Perfect For Silver Investors
Throughout the last 2000 years, the gold to silver ratio has a historical average of 12 to 1. The gold to silver ratio currently hovers around 72 to 1.
There is tremendous upside potential for investors purchasing silver at this ratio.
Invest Safe With A Silver IRA
Like gold, silver can be purchased through an IRA. A silver IRA or precious metals IRA allows investors to hold silver and other metals in an IRA and enjoy all the same benefits of a tax-advantaged retirement account, while simultaneously investing in physical coins or bars.
Millions of investors are turning to silver in form of IRA-approved silver coins for a safer long-term asset.
But only certain metal products are permitted to be placed in IRAs. Learn more in our ultimate gold IRA rollover guide.
Internal Revenue Code For IRA-Approved Silver:
- The silver must be at least 99.9% fine to qualify for an IRA.
- Silver bullion rounds and bars must be fabricated by COMEX, NYMEX, or an ISO 9000 approved manufacturer in order to be accepted.
- Proof Coins cannot be graded and must come in the original Mint packaging with a Certificate of Authenticity to be eligible.
Best SILVER IRA Companies
Gold IRA & Alternative Assets Companies We Recommend
There has never been a better time to invest in gold, silver, and alternative assets than today. With the ease of setting up a silver IRA , you can go from worrying about your retirement savings to complete confidence in the security of your wealth. But choosing the right company to invest with can be extremely difficult unless you know what to look out for.
When reviewing gold IRA and crypto IRA companies it’s critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, and Ripoff Report.
We have looked into Goldco Precious Metals, and Augusta Precious Metals, both top-rated gold IRA and alternative assets companies.
Setup Fee Only $50
Minimum Purchase $50,000
Endorsed by Quarterback Joe Montana & His Personal Financial Team
Unique Free One-On-One Web Conference About Economy & Gold IRAs
A+ Rating by the BBB
Up to 10 Years of Fees Reimbursed to Your IRA in Silver Coins
Easy IRA & 401(k) Rollovers
Outstanding Client Ratings
To conclude, silver is and will continue to be a great investment, but if a silver dealer would recommend that you invest all your capital in precious metals, the company does not have your best interest in mind.The whole idea is to diversify your assets, and the company of your choice should carefully consider your long-term investing goals and recommend the best solution for you.