Gold deserves all that. After all, it’s the ultimate symbol for wealth and the metal of choice for jewelry and many electronic components.
But for years now, many experienced investors are saying silver can compete with gold in terms of value. Some even claim silver is better than gold in many aspects. This dispute between supporters of gold and silver will continue to rage on and may never be resolved in the foreseeable future.
Still, even if silver has a lower price per ounce and has arguably less demand compared to gold, there’s no denying silver is one of the leading precious metals on the planet. Don’t miss out on silver’s return on investment (ROI) potential. To start investing in silver or diversifying your portfolio, you can buy and trade silver with Gainesville Coins and similar online buyers.
Perhaps the time will come when silver will be more valuable than gold. When that happens, you shouldn’t be surprised at all. Here are the top reasons why silver is better than gold.
1. A Good Hedge Against Inflation
Thanks in no small part to the recent pandemic, many countries are grappling with weakened economies. Sure, some industries and countries are slowly recovering. But still, inflation can pose a threat. Good thing silver can act as a good hedge against inflation.
Silver is a precious metal. It has real value, unlike paper currencies. So instead of putting your money in banks, you may invest in silver and watch the value of your investment grow. Market forecasts indicate a bullish trend for silver prices. The best part is you don’t need as much money to invest in silver as in gold. You get an inflation-proof investment without the exorbitant cost.
2. Rising Market Demand
Gold has some industrial applications, particularly in electronics. But in the last couple of decades, technologies that use silver-based components have also grown. The massive shift to renewable and eco-friendly products seen in many countries in recent years has put silver in the spotlight. Silver is a crucial component in making solar panels, electric vehicles, and even the latest 5G networks in telecommunications.
What do these all mean for the investor? All these industrial applications will boost the demand for silver. More demand translates to higher value and prices. If you’ve invested in silver, you can potentially reap a higher ROI.
3. More Affordable Investment
Silver is more affordable than gold. If you go online and do some research on the price of silver, you’d see it’s less than USD$50 per ounce. On the other hand, the same amount of gold would be trading for well over USD$1,000.
With the current price ranges for silver and gold, it’s clear you can buy more silver. But just because it’s more affordable doesn’t mean you won’t profit from silver. On the contrary, the price of silver continues to rise, so it can also offer you the opportunity to grow your money, just like gold.
4. Decreasing Supply
Like fossil fuels and other precious metals, silver has seen a significant decline in supply. Historical estimates indicate that unmined silver amounted to approximately 10 billion ounces over a hundred years ago. Today, that figure has dropped to a little over two billion ounces.
The decline in the supply of silver may be attributed to many factors. For one, it may be harder to mine this precious metal today than a century ago. But whatever the reason is for the dwindling supply, experienced investors know that a commodity’s scarcity can only push its prices up. So silver’s scarcity, coupled with the rising market demand, would only make it more expensive in the years to come. Hence, now is the best time to invest in silver.
5. Excellent Way To Diversify Portfolio
It’s never a good idea to put all your eggs—or investments—in one basket. This time-honored phrase makes a lot of sense, especially for investors. So if you have money to invest, you may look at silver. Like gold, silver is a commodity that typically moves higher when stocks, bonds, and currencies are declining.
Indeed, silver is cheaper than gold. But apart from its affordability, silver has been known to be more volatile than gold. Thus, its price can go up higher than gold if the market for precious metals is bullish. While this can also mean silver prices may decline deeper during bear markets, a prudent investor can get out of the market before silver spirals out of control. After all, every investor knows that with higher rewards come higher risks.
The Bottom Line
Undoubtedly, gold is more popular than silver. But with a bit of research and if you take a closer look at silver, you’d see it has its strengths over gold. For one, silver provides an affordable hedge against inflation. Its demand is growing, while its supply continues to become limited. Overall, silver offers an excellent way to diversify your portfolio. Many investors see silver as a better investment, and perhaps you should, too.