Here, I present my top six reasons to buy silver. Investors I believe, are looking down on silver compared to gold, and other types of investments. If you go through this post you will see silver is undervalued therefore, a great opportunity to invest.
Silver is affordable
As we speak, silver sells at $18,36 and gold sells at $1256,94 a troy ounce therefore, an investor with $10.000, can either get 544 ounces of silver, or 8 ounces of gold.
Silver is real money
Although silver is not part of our currency, along with gold is the ultimate form of money, because it can’t be created out of thin air, like paper money or digital coins. I am talking about silver in physical form, no ETF’s futures or certificates.
Growing demand falling supply
There is a growing demand for silver globally. China’s and India’s appetite for silver is growing and at the same time industrial demand is growing too. At the same time the last couple of years, silver production has peaked and soon supply will not be meeting demand
Silver outperforms gold in a bull market.
The silver price increases more than gold in a bull market. Historically, silver is more volatile than gold. If you think there is going to be a bullish market for gold and silver, then it will be better to place a fair amount of money on silver. In the 1970’s bull markets for silver and gold, the silver price rose 3800% compared to 2500% to gold.
Silver is undervalued compared to gold
Industrial uses for silver are abundant, from electrical uses to photographic developments, silver may be one of the most useful metals to man. The applications and uses for the precious metal are always growing. Silver prices per ounce are well behind gold’s. In particular, today for an ounce of gold you need 62 ounces of silver and that is three time higher than in the past, where you could get an ounce of gold with 20 ounces of silver.
Silver is an important diversification and a tangible asset.
Silver like gold, is a precious metal asset and it acts as a hedge against inflation. Silver and gold, are rightly viewed as a safe harbor in times of crisis, therefore, investing in silver is necessary for portfolio diversification. Silver like gold, can also protect against geopolitical uncertainty, unstable economy, and weak currency. Silver like gold, is a great way for an individual to preserve his/her own wealth.
CONCLUSION
Investors from all levels are attracted to silver, as a solid tangible and long term store of value. Nevertheless, silver is heavily undervalued when compared to other commodities, and is also undervalued compared to gold. Many analysts believe silver could be the bargain of the century.