What is silver and why do people still invest in silver, can I invest in silver online?
Silver is a metallic element with the atomic number 47. Silver was discovered in the ancient times, and used by the ancient Greeks, Romans, Asians, South Americans, and the Chinese. Silver is also mentioned in the bible. Nowadays silver is considered an attractive form of investing. Today, investing in silver is a great way to start investing.
Silver is a soft, white, ductile, malleable, lustrous transition metal. It is the metal with the highest electrical conductivity, thermal conductivity, and reflectivity of any other metal. Its high cost has prevented it from being widely used for electrical purposes.
It is one of the scarcest elements. Most silver used today is obtained from its ores, including argentite. The top producers are Russia, Mexico, Australia, USA, and Canada.
Silver was once referred, the noble metal, due to its long association with aristocracy. The other two noble metals are. gold and platinum.
The Lydians were the first to cut silver coins, and that was back in 700 BC with many nations to follow after that. For example, the stability of the Roman currency relied to a high degree to the supply of silver bullion. Apart from the Lydians and the Romans, many nations used silver as the basic unit of monetary value. Among these nations, we can find the Americans, the English, the French and many others. The trend continued till the year 1967, when the last Swiss coins with silver produced.
Silver as a commodity
In our time, silver is used in solar panels, water filtration, jewelry, tableware, dentistry, coinage, photography, electrical contacts, printed circuits, and medicine. In fact there is a solid industrial demand for silver. If you look at the figures, almost 60% of silver production goes towards industrial use and it is growing. In particular, world demand for silver is growing with India and China leading the way.
Silver and the Markets
There are many factors influencing the price of silver, one is supply and demand. At the same time, like gold, saving and disposal can also influence the precious metal price. Jewelry has too an effect on silver’s price and there is an increasing demand for silver jewelry.
Geopolitical uncertainty, weak currencies, inflation, low interest rates, unstable economy and an overpriced Dow Jones, can also affect silver prices.
Reasons to Invest in Silver
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.
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.