Why smart investors should buy Silver

Why smart investors should buy Silver
What defines a good investment? A good investment should be easy to buy and sell and provide security. It should be in demand and have a guaranteed return. When considering a specific investment, decide if the investment fits into the “big picture”. Whether it’s your personal “big picture” or that of the world economy, an investment will only be successful if it can yield profits on a constant basis. With that said, we discuss why smart investors should buy Silver to cater for every possible “big picture”.

Silver is more popular for small purchases

For as long as Gold and Silver have been in use, the question has always been which one is the best to invest in? An ounce of Gold is more expensive than Silver but owning Silver is more practical when you need to sell. If you have to meet small financial needs, it is easier to sell Silver as opposed to an ounce of Gold. Investing in Silver is ideal for personal investment and when operating a small business.

Silver is affordable

Gold and Silver have one thing in common – both will protect you during times of crisis. With that said, Silver is much more affordable and will go a long way in providing security.

Silver Krugerrands can also be given as a gift and your friends and loved ones will love you for it!

Silver outperforms Gold in bull markets

Due to the size of the Silver market, the precious metal can be volatile during bear markets. It will not necessarily hold its value as well as Gold does. Never the less, during a bull market, Silver usually outperforms Gold and gains value faster.

From its low in 2008 to its high in 2011, Silver outperformed gold by increasing 448% during the period. The Gold price increased 166% during the same period. Silver’s Industrial use is growing

Silver is used in majority of appliances such as batteries, solar panels, medical equipment, cellphones etc. This is due to Silver being thermally and electrically conductive, and reflective. It is great news for investors as it means that there is a continuous demand for Silver. As a matter of fact, 56% of all Silver is used in the Industrial sector. Followed by 33% in the jewellery and silverware industry and 11% in the Investment industry.

The Silver supply is peaking

In an article entitled ‘Peak Silver & Continued Supply Deficits Warn Of Future Higher Prices’ published on moneymetals.com, Silver production already reached a peak in 2016. The article states that global Silver production declined from 893 million oz (Moz) in 2015 to 887 Moz in 2016. So, with an increase in demand for the precious metal along with supply reaching its peak in 2016, it is only a matter of time before the price of Silver could reach new heights.

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