Silver has been prized for its use as money and jewelry since time immemorial. Over the centuries, however, the market has changed. So, does silver have a place in a 21st-century investor’s portfolio?
We at SilverToken believe it does, of course! In this post, we will discuss the pros and cons of silver investing.
Precious metals are valued as a hedge against inflation and financial stability. They perform well in recessions and are resistant to unwise government policies. Silver is popular with investors for these reasons.
Understanding silver requires a closer look at the differences between silver and other commodities.
“Why should I invest in silver?”
Silver is similar in many ways to other assets. For one, the supply is limited by how much miners can mine. This means that unlike paper money, politicians can’t destroy its value by creating infinite amounts.
Silver has been used as money and jewelry for thousands of years and has had a stable value for thousands of years.
There are some essential differences in the uses of silver.
Silver has thousands of uses in technology, including electronics, electric vehicles, and solar panels. As these technologies become more popular, more companies buy silver, which consumes silver, diminishing the silver already mined, thus causing the price to increase.
Better Price Movement
Since Silver is a diminishing resource like oil, there is less of it available for investing. Whereas, 98% of all the gold that has ever been mined is still in existence. This means that the silver market is small and more likely to see sudden movements from supply and demand. Because of this, Silver has more potential for profit; if you are patient and wait for the right price.
Lower Storage Costs
During times of inflation, it is advisable to own assets because their price will increase. Storing these assets is sometimes difficult if you own oil, grains, or silver. A million dollars worth of silver is much smaller than a million dollars worth of wheat. This condensed value makes silver easier to store than other assets.
SilverToken is easy to store. SilverToken allows you to own physical silver with no storage fees. SilverToken’s transaction fees cover storage fees. Transaction fees are only 1%, and 50% of that is allocated toward expanding the silver holdings of all SilverToken owners.
Most commodities are difficult to sell, and finding buyers for large quantities of any asset can be challenging.
This is not a problem with SilverToken since we have a buy-back guarantee. We will pay the spot price of silver for SilverTokens at any time, 24/7, guaranteed.
Better Risk/Profit Profile
Even though silver is a bit more volatile than government currency, it is still very stable. There are also some factors that make a price surge in silver much more likely.
Many analysts believe that silver is currently underpriced. There are a couple of reasons for this; for one, there are many signs of a shortage of silver. This shortage has not been reflected in silver prices as a result of the insane amount of silver derivatives distorting the market.
This means silver has an increased growth potential.
Now that you know a bit about why you might want to invest in silver, you’re ready to learn how to invest. There are several ways to include silver in your portfolio, each with different advantages and disadvantages.
The traditional method of buying silver is to buy bullion. You can easily buy silver coins or bars from silver dealers on or offline.
Due to silver’s bulkiness, this is impractical for many investors. It also makes it more challenging to sell if you ever want to liquidate your holdings.
Silver stocks are an easy way to include silver in your stock portfolio. One way to do this is by buying stock in mining companies like Majestic Silver (NYSE: AG) or Pan American Silver Corp. (NASDAQ: PAAS).
The downside of this is that mining companies have some operational risks. For example, some silver mines are located in countries where political instability or natural disasters could affect mining output. Mining companies are also not a “pure” silver investment since silver is usually mined along with other metals.
Silver ETFs (Exchange-Traded Funds) are funds that hold physical silver and issue certificates of ownership, usually through traditional investment brokerages. The biggest silver ETF is iShares (SLV).
Silver ETFs allow the benefits of silver ownership without the worries about storing and securing it. However, this does come with administrative costs, about 0.5% in the case of SLV.
A revolutionary new way to invest in silver is SilverToken which offers a number of unique benefits.
Rapid transactions, worldwide. SilverToken has all the advantages of blockchain technology when it comes to transactions. You can quickly and securely send it anywhere in the world.
No storage fees. Unlike silver ETFs, SilverToken owners pay no storage fees. Instead, storage fees are covered by SilverToken’s 1% transaction fee.
Privacy. Investing in Silver ETFs requires submitting thorough identity checks. This can be a big problem in countries with oppressive or tyrannical governments. SilverToken can be purchased anonymously using Ethereum, an established and stable cryptocurrency.
Easy to sell. SilverToken offers a 24/7 Buyback Guarantee. You can sell SilverToken for the spot price of silver at any time.
Is Investing in Silver Right for You?
To know if investing in silver is right for you, try answering a few simple questions:
- Do you want to protect your wealth from inflation?
- Do you think the world is facing economic uncertainty and instability in the coming years?
- Do you want a more diversified portfolio?
- Do you think silver is undervalued?
- Do you think the demand for technology items will continue to grow in the coming years?
- Do you think owning silver is safer than owning government currency?
If you answer “yes” to some or all these questions, then silver probably aligns with your investment philosophy. If that’s the case, you’re not alone; investment magnate Warren Buffett is also known for investing in silver.
There are other, less profit-driven reasons to invest in silver– it’s a move toward more honest, sound money. To learn more about the benefits of silver, be sure to subscribe to our newsletter below.