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10 reasons why one should invest in Silver

Published by Karl Martin Karus in category Articles on 14.02.2020
Gold price (XAU-SEK)
27119,20 SEK/oz
  
+ 31,10 SEK
Silver price (XAG-SEK)
316,93 SEK/oz
  
+ 1,58 SEK

10 reasons why one should invest in Silver

  1. Silver is real money – It may not be part of our currency, but it is still money. In fact, silver, along with gold, is the ultimate form of money. It cannot be created out of thin air and thus depreciated like paper or digital forms of money. [1]
  2. Silver is a cheap hard asset – Silver and gold both are considered as good protection in economically uncertain times. You can buy silver with a fraction of the gold price. Silver is much more affordable for average investors. If you can not buy 1oz gold, you can always buy silver. [1]
  3. Silver has never been defaulted on – If you own physical silver, you have no default risk- historically speaking. This is not the case for almost any other investment you make. [1]
  4. Silver is more practical for everyday small purchases – Silver isn’t just cheaper to buy but can be more practical when you need to sell. Maybe someday you don’t want to sell a full ounce of gold to meet a small financial need. Enter silver. Since it frequently comes in smaller denominations than gold, you can sell only what you want or need at the time. [1]
  5. Silver Inventories are falling – Governments and other institutions have traditionally held inventories of silver. But today, most governments no longer hold stockpiles of the metal. In fact, the only countries that warehouse silver is the US, India, and Mexico. [1]

  6. Industrial use is growing. Believe it or not, you don’t go one day without using a product that contains silver. It’s used in nearly every major industry, from electronics and medical applications to batteries and solar panels. Silver is everywhere, whether you see it or not. As Michael Maloney says in his book, “Of all the elements, silver is the indispensable metal. It is the most electrically conductive, thermally conductive, and reflective. Modern life, as we know it, would not exist without silver.” [2] Due to these rare characteristics, the number of industrial applications for silver has skyrocketed. In fact, the industry now gobbles up more than half of all silver demand. [1]

  7. Supply is about to Fall – Silver price crashed after peaking in 2011. Over the next few years, it fell by over 72%. As a result, miners had to scramble to cut costs to turn a profit. The exploration and development of new mines were dramatically cut. Less time and money spent looking for silver makes Supply to fall. Supply started to fall in 2015. [1]
  8. World demands is growing – Global demand for silver is growing. Let’s take China and India as an example. These two markets have long histories of cultural affinity towards precious metals. Their population is growing which means their ´´appetite´´ will probably continue to grow. [1]
  9. Historically speaking the Gold/Silver ratio favors Silver – The Gold/Silver ratio can give clues about which metal might be better to buy at any given time. We have written about the Gold/Silver ratio and you can read it here. [1]
  10. Historically speaking silver outperforms Gold in Bull Markets – Silver is a very small market—so small, in fact, that a little money moving into or out of the industry can impact the price to a much greater degree than other assets (including gold). This greater volatility means that in bear markets, silver falls more than gold. But in bull markets, silver will soar much further and faster than gold. For example: [1]
Gain from 1970 low to 1980 high Gain from 2008 low to 2011 high
GOLD 2328% 166%
SILVER 3105% 448%

 

Owning some physical silver provides you with a real asset that has served as money for literally thousands of years.

Here are our top-selling silver products: https://tavex.se/silver/silvermynt/

Disclaimer: This article is for informational purposes only and is not intended as an investment analysis or recommendation to sell or buy commodities. Tavex is not responsible for any decisions made based on this information. Investing is associated with opportunities and risks, and the market value of commodities can both increase and decrease. Past or future yields on the commodities and financial ratios shown above do not represent a promise or an indication of future earnings.

[1] https://goldsilver.com/blog/top-10-reasons-to-buy-silver/

[2] https://www.amazon.com/Guide-Investing-Gold-Silver-Financial/dp/1937832740/ref=dp_ob_image_bk

 

Gold price (XAU-SEK)
27119,20 SEK/oz
  
+ 31,10 SEK
Silver price (XAG-SEK)
316,93 SEK/oz
  
+ 1,58 SEK

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