For this reason, many investors turn towards commodities like silver when the stock market has a poor outlook or in times of economic recession or political turmoil. Since it's impacted by different influences, silver can be a good way to diversify and counterbalance your portfolio vis-a-vis equities or other paper securities.
Silver also acts as an inflation hedge. As a physical asset, it has intrinsic worth, unlike the dollar or other currencies. Silver holds its value long term and fares well when interest rates are low — and fixed-income investments aren't earning much. In these ways, silver functions like gold as an investment, serving a similar "safe haven" role. However, silver is an industrial metal as well as an investment metal — which significantly affects its price performance and outlook.
Silver is used in the manufacture of a variety of things, from glitzy jewelry to humble batteries, from medical equipment to microcircuits. It's also at the forefront of some innovative fields. With both fields expanding rapidly, he explains, many analysts predict that the demand for silver is likely to rise substantially in the coming years. So investing in silver can be a way to bet on the technological advances and the clean energy movement.
Of course, silver — like any investment — isn't all reward; the metal brings its fair share of risks, as well.
It's natural to compare silver to gold as an investment. They share the same tangible asset strengths — counterweights to stocks and stock markets, safe havens against socio-political shocks, inflation hedges. However, the two precious metals have several major differences. Silver is less costly than gold — much. Gold trades in the four figures. So silver is much more affordable: The same dollar investment buys you a lot more silver than gold, and silver has the potential to offer more profit.
The more-for-your-money aspect is a double-edged sword, though. In the silver peak, the average price of a barrel of oil reached parity with silver For the next 25 years, the price of a barrel of oil averaged around 4. Today, it is around 5 oz of silver for one barrel of oil. The oil and silver markets are volatile, but the silver:oil ratio has hovered around per 1 barrel of oil. So perhaps it will be time to sell your silver the next time it reaches parity with oil.
Currently, that is around a 5x increase in the price of silver to reach this target. Another comparison you can make is the price of the Dow Jones industrial average in gold.
During the height of the dot-com bubble, it took more than 40 ounces of gold to buy 1 share of the Dow. Today, it takes around 8. You should also consider the gold to silver ratio. Historically, silver has always traded around 16 ounces of silver to 1 ounce of gold. It has only been in the last century or so that the ratio has fallen to a high of 91 oz of silver to 1 oz gold. The Investing News Network takes a look at silver futures, including what they are, where they're Please remember that by requesting an investor kit, you are giving permission for those companies to contact you using whatever contact information you provide.
If you want more than 20 investor kits, you need to make multiple requests. Select 20, complete the request and then select again. By selecting company or companies above, you are giving consent to receive communication from those companies using the contact information you provide.
And remember you can unsubscribe at any time. But Bill Holter and Jim Sinclair hit the nail on the head for me. There is no way that the world can pay the debt, something has to give. The global financial system is based on ever increasing amounts of debt.
The endgame outcome is certain, the path is uncertain. Stocks and real estate looks very expensive relative to PMs. I am super leveraged on real estate where I earn a good rental yield but have also been accumulating silver and gold in lieu of keeping cash in the bank. You cannot compare investing in PMs with investing in stocks or real estate, its apples and pears.
I would rather invest in silver than keep excess money in the bank. Im happy to keep my silver with my broker for the next few years until I have a better handle on the global outlook.
Long term plan is to take delivery to avoid paying longterm storage costs and have my children inherit the bulk of my PMs. In fact, I dont have any savings accounts for them. I allocate a portion of my PMs to them each month as if I would be saving fiat ccy for them. I suspect the value of my PMs during the next economic downturn will be enough to cover most or all of my housing loans. Then I will increase my cashflow and look forward to retirement. I stack gold and silver an insurance policy for my grandchildren.
I love them!! I am certain that our monetary system will collapse when?? Oh wow, you are so far off in left field.
People like me buy silver for when the dollar collapses. We want the price to keep going down to lower the dollar cost average. A safe deposit box at the bank? Countless people have made articles on this. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors.
Gold and silver have been recognized as valuable metals and have been coveted for a long time. Even today, precious metals have their place in a savvy investor's portfolio. But which precious metal is best for investment purposes? And why are they so volatile? There are many ways to buy into precious metals like gold, silver, and platinum, and a host of good reasons why you should give in to the treasure hunt.
So if you're just getting started out in precious metals, read on to learn more about how they work and how you can invest in them. We'll start with the grand-daddy of them all: gold. Gold is unique for its durability it doesn't rust or corrode , malleability, and ability to conduct both heat and electricity.
It has some industrial applications in dentistry and electronics, but we know it principally as a base for jewelry and as a form of currency. The value of gold is determined by the market 24 hours a day, seven days a week.
Gold trades predominantly as a function of sentiment—its price is less affected by the laws of supply and demand. This is because the new mine supply is vastly outweighed by the sheer size of above-ground, hoarded gold.
To put it simply, when hoarders feel like selling, the price drops. When they want to buy, a new supply is quickly absorbed and gold prices are driven higher. Several factors account for an increased desire to hoard the shiny yellow metal:. Unlike gold, the price of silver swings between its perceived role as a store of value and its role as an industrial metal.
For this reason, price fluctuations in the silver market are more volatile than gold. That equation has always fluctuated with new innovations, including:. It's unclear whether, or to what extent, these developments will affect overall non-investment demand for silver. One fact remains: Silver's price is affected by its applications and is not just used in fashion or as a store of value. Like gold and silver, platinum is traded around the clock on global commodities markets. It often tends to fetch a higher price per troy ounce than gold during routine periods of market and political stability simply because it's much rarer.
Far less of the metal is actually pulled from the ground annually.
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