Live Metal Prices / oz
Gold: 1811.70 USD
Silver: 19.88 USD
Platinum: 876.00 USD
Palladium: 1936.50 USD
Rhodium: 13900.01 USD

Does Silver Act As An Inflation Hedge?

The silver lining of any investment, risky or otherwise, is the return. When investors are looking for a return in precious metals, they often bet on gold. But investing in gold can be quite expensive, and there are better alternatives, namely silver bullion. 

To invest in silver is the best way to maximize gains on a relative small investment. This is a situation that many investors are familiar with. However, there is another question worth asking. How strong is silver as a hedge against inflation?

Why Invest In Silver?

One of the main reasons investors turn to silver is that it is more affordable than gold. Investors also buy silver bars or coins as they can be more versatile. For example, an investor looking to buy silver coins and use them as a currency will find that silver coins are easier to barter with or exchange. In addition to being more affordable, silver is also a tangible asset.

Silver, like all precious metals, is vulnerable to price fluctuations. However, the metal has an intrinsic value and consistent demand (for technologies like medical equipment and solar panels). This means that the metal is unlikey to decrease in value significantly. Silver will always retain its prime, inherent value.

What Makes Silver a Better Hedge Against Inflation?

The edge that silver has over gold as an inflation hedge is its extensive industrial application. Silver has a constant, growing demand that continues to rise with the global focus on eco-friendly technologies. Silver is crucial to green energy technologies. 

There are three particular industries in which silver is cruical to sustain a green economy. These are solar energy, nuclear energy, and the appliance charging industry. The demand for silver, whose properties contribute to zero emissions, is projected to skyrocket. 

Furthermore, silver also has industrial applications that contribute the the metal's inflationary hedging abilities. For example, when the demand for goods and services increases and supply is limited, inflation rises and the price of silver will also increase. 

Finally, silver can be a strong hedge against inflation because of its status and nature. Silver's value is calculated differently than that of paper currencies. It cannot be printed and the metal is limited in supply. Since silver has a limited supply, when the US Dollar falls due to overprinting of fiat currency by the government, the price of silver rises.

Final Thoughts

As an investor, it is worth adding silver bullion to your portfolio. Silver is more affordable than gold. It is highly versatile and has industrial uses. During rising inflation and uncertain economic conditions, owning silver can be hugely beneficial. If you are interested in buying silver bars or coins, then visit buysilvercoins.eu.