Silver is a very popular investment option due to its relatively high rate of return. Silver prices have had a huge range over the last 15 years, trading from $8/ ounce up to over $40/ ounce. Despite this, silver is still considered by many investors to be undervalued and a good investment for a number of reasons, including its future demand in the green technology industries. Let's consider a few reasons why silver is a good buy.
Reasons to Invest in Silver
1. The stock market is at an all-time high
The global stock market has been growing without correction for more than a decade. This is in spite of the impact of Covid on economies and the Russian-Ukrainian crisis. Many investors feel that there is a huge market correction due at some point soon.
A looming financial crisis is a real possibility, especially as the world economies react to all of the debt forgiveness incurred by Covid, and the monetary easing that occurred by governments worldwide. Any type of financial crisis tends to draw money very quickly out of the stock market and into assets like gold and silver, whose prices quickly appreciate.
2. Silver is in a Recovery Phase
Investors who make investment decisions based on charts will find that silver reached new lows several years ago and is bouncing off of those lows. This tends to mean that the price is expected to increase. Furthermore, the ever-increasing demand for silver in the solar technology industry is expected to continue to strengthen silver prices.
3. Silver can be purchased in different forms
Investors have multiple ways to invest in silver, including physical ownership, futures, and mining stocks. However, most investors who purchase silver due to concerns over the economy choose to buy silver coins or bars, as they cannot be erased on a screen. Furthermore, silver coins in particular can be used in place of fiat currency, as was the case for hundreds of years. Most investors who build up a silver portfolio chose a mix of larger sized silver bars and 1 ounce silver coins so that their portfolio is well diversified.
4. Geopolitical Environment
Many investors believe that the current geopolitical environment will cause a future economic recession. This is likely to be further amplified by the excessive debt many nations are carrying. Countries like the United Kingdom and the United States have issued unsustainable debt in the last several years to soften the economic impact of Covid. However, this debt is likely to cause inflation, (which has already started), and could cause hyperinflation.
5. Diversification of Your Portfolio
It is never a good idea to invest all of your money into a single asset or asset class, especially if it offers fast and attractive returns. This is because you could end up losing a lot of your investment if the markets reverse. Therefore, portfolio diversification is an important step in building a precious metals portfolio. Silver can be an excellent way to diversify your portfolio.
BuySilverCoins.eu offers gold and silver bars and coins for sale that are excellent for building up a precious metals portfolio. If you have any questions, please do not hesitate to contact us.