Thinking of Buying Silver: Is It a Good Investment Option Or Not?

Silver has served as a valuable asset to investors for many reasons. It’s often used to diversify one’s portfolio, hedge against inflation, and is seen as a “safe haven” to store your wealth. However, silver comes with risks, including volatility, risks related to supply and demand, and the risk of theft if you own physical silver ornaments or materials.

This article will look at the advantages of investing in silver from an Indian perspective, as well as how it is used in industrial sectors of various economies. This will help you decide if silver is a safe investment for you or whether you should look for better options. Follow our blogs for more investment related articles and how-to guides.

Investing in Silver: Case Study on Buying Silver

In recent days, most people make the mistake of investing everything in the stock market as it gives quick and attractive returns. However, this can become a huge mistake when the stock market crashes and you will end up losing a major portion of your investment. For this reason, you should always look for ways to diversify your investment and investing in silver can be the best alternative.

Silver is highly speculative and usually goes up only when traditional investments like stocks and bonds are down. For that reason, consider it as an alternative investment (or speculation) to offset losses in traditional assets during times of financial turbulence.

Both silver and gold can function as safe haven assets, but gold tends to have a better track record over long periods of time. That said, over shorter periods the specific dynamics of each market end up being more important to their respective returns. Regardless of which you buy, remember that neither asset produces cash flow, so investors might be best served in the long term to take a buy-and-hold approach with a portfolio of profitable and growth stocks.

When it comes to investing in silver, there are a few things to consider. Let’s take a look at the advantages and possible outcomes:

ADVANTAGES:

• Silver is a tangible asset that you can hold in your hand, making it a safe investment.

• It has a long history of being used as money and is currently used as backing for various global currencies. It is also used in a wide range of industrial applications, making it a strong investment choice for those who want to hedge against inflation.

RETURN OF INVESTMENTS:

As with any investment, there is always the risk of loss, but with silver, you have the potential to make a good return on your investment. Some people have even made fortunes investing in silver!

Silver Cryptocoin B.V. is a Dutch company which sells physical silver online and they faithfully swear that more than crypto, silver is the sought after investing option. This alone substantially proves that volatile investments like crypto don’t stand in competition with silver.

Also read: Gold Investment: Pros and Cons of Investing in Gold

Industrial and Historical usages of Silver

You’ve probably heard that silver is a valuable resource. But what you might not be aware of is the fact that it’s been used as a form of currency and investment for centuries.

Silver is one of the most fascinating metals on Earth. From its ornamental beginnings to its current use in various industries, silver has had a long and varied history. In India, this metal has been coveted for centuries for its many qualities and benefits.

Let us take a look at some of the ways silver has been used in India over the years.

The ancient Indian Vedas, or holy texts, discuss the use of silver for ceremonies and offerings. In fact, many of the ritualistic objects used in these ceremonies were made of silver.

The British were one of the first to recognize the value of silver in India. They began to mint their own coins out of silver, which they used to trade with the locals. Even today, silver retains its value as a form of investment. Many people buy silver as a way to protect their wealth, as it is a tangible asset that is not tied to the stock market or other forms of investment.

Silver has been coming in handy in India for a range of industrial usage for centuries. Some of the earliest examples include its use in the minting of coins and the production of jewellery. Silver is also an effective conductor of electricity, making it a valuable material for use in electronics and other electrical appliances. In recent years, silver has even been used in the manufacturing of solar cells.

The following image depicts the usage of silver in the main industries;

• Jewelry, Silverware, and Devotional objects.
• Investments – Silver Bars, Silver coins.
• Batteries, Solar panels, and Biocides.

Pic 1. Diverse uses of Silver in various industrial and household items.

SOME MUST KNOW USPs OF SILVER: EXPLAINED FOR YOUR UNDERSTANDING

Silver is cheaper than gold, but more thinly traded, making it more volatile and less liquid. Silver has been around for multiple decades giving people a sense of stability as a rare, limited-in-supply commodity in which one can safely invest their hard-earned income. Among the many reasons why people invest in silver include: Silver has been around forever, trust factor drives people into investing in silver.

Silver is a better inflation hedge than gold because of industrial use. This means that in a strong economy, Market experts and economists always recommend investing in a risk-free low valued asset like silver. By proper study and taking into consideration all the expert advice, investment in silver is an excellent investment option for an Indian citizen. It is better than gold as well because of its rational liquidity and its lower prices. Silver also acts as an inflation hedge.

In conclusion, Silver is a better inflation hedge than gold because of industrial use. But if you want access to the potential growth of silver but aren’t willing to give up on the stability gold provides, a mix of the two investment options is likely your best deal. Read b4investing.com blogs for more topics of trends in Finance and investments.

Read also:

• 10 Investment Options to become a Money Maker from Home Maker
• What is Inflation : Everything about Inflation

References:

• Wallstreet
• Business Insider
• Iforex trading – India
• Live price
• Worldbank.org
• Statista website