When someone is deciding whether to invest precious metals, one of their first considerations is whether they should choose to invest to gold. Many people are unaware of the benefits of investing in silver. One reason for this is that TV and Radio News report regularly on the price fluctuations in gold bullion. But very few mention silver. I will be discussing whether silver is better than gold in this article. Visit top gold IRA before reading this.
Let’s be honest: In times of recession, not many people have large sums of money. It’s sad but it’s the truth. People invest in silver because it is cheaper than gold. You can get it up to 45x cheaper sometimes. While this does mean that you will get less of a “physical return” on money as you will be spending more, it is still an excellent way to invest and possibly make a profit in the long term. Many experts believe that silver has a low value. In fact, it is about 15 times cheaper than traditional gold. Therefore, the investment potential of silver is appealing. As such, it is possible to reasonably conclude that silver will be priced at a record high if the relation between gold and silver returns to its historical levels.
Paper futures are something that can be found in the silver and gold bullion markets. Investors buy these to project future price movements and falls. There is a tendency at times to lower the price. There are many silver options currently in existence! The advantage for investors in silver is that, if the silver price rises, silver future owners will have to buy more silver to correct their situation. They could be in serious financial trouble if they do not. These papers could be defaulted upon, which would indicate that there is a severe shortage of silver. This will certainly undermine the market.
Investors who hold physical gold will see an increase in demand. This will allow them to sell their investments at a higher price.
It is important to note that silver can be used in jewellery and industry. There is far more demand than what the supply chains can handle. For example silver is used for the following purposes:
Switches and circuit breakers in the power industry use silver contacts
Silver contacts in membrane switches panels for machinery and chemical industry processes.
Silver batteries
Radiography – Photo Film
Cell phones
PC’s & Laptops
Medical applications
This has been the case for quite some time. The outlook is unlikely to change. It is not well known that there are very few global silver mines. They only mine silver as an added benefit because they were built to extract metals. Their silver is a kind bonus. There’s no way to ensure that large quantities can be entered the supply chain. As such, silver is more in demand than it is being consumed and therefore the price is likely increase.
Some of the best investors around the globe have been ‘betting on’ the silver price. Warren Buffett holds 2% of the portfolio in silver and many other serious international investors have followed Warren Buffett’s lead. This should tell you something.