Silver is a precious metal that has been used as a safe haven asset in times of economic uncertainty. It is cheaper than gold, but more volatile and illiquid, making it a riskier investment. Despite this, silver is still considered a safe asset and can be a good option for those looking to preserve their wealth in difficult times. The cost of investing in silver varies depending on the method chosen.
Bullion may incur additional charges, mainly between 10 and 20 (%) fees for silver coins or ingots. Safe deposit boxes also have a monthly fee to ensure the safety of your investments. Silver ETFs are a lower-risk option than futures, but they come with their own risks and rewards. Silver is more sensitive to economic changes than gold, which has limited uses beyond jewelry and investment purposes.
This means that if the price of silver goes up, you can make a profit with silver coins and ingots, but there is no cash flow from the physical product. Silver futures are an attractive way to play in the silver market because of the large amount of leverage available in futures contracts. Precious metals, such as silver, have long been an alternative to traditional investments, such as stocks and bonds. When times get tough or the economy faces strong inflationary pressures, some investors turn to silver to hedge their bets or to invest more defensively.
Investors like silver for many reasons, but many see it as a store of value in times of uncertainty, while others see it as a hedge against inflation. As Mike Maloney says in his bestseller, Guide to Investing in Gold and Silver, “gold and silver have been revalued over the centuries and have resorted to the fiduciary role to hold them accountable for themselves”. While the spot price per ounce of silver is much lower than that of gold, it is still a viable investment in uncertain markets.