Is silver a good investment in 2018? More abundant than Gold, Silver was one of the first five precious metals used by man in the early ages. If you want the expert’s review on how silver fares against the gold prices today, explore real reasons for investing in silver bullion below. It can save you from costly investment mistakes and teach you the professional way to invest in silver bullion!
Gold Vs Silver
Silver was the first currency adopted by the United States of America in 1792. The ‘British Pound Sterling’ roots from the precious metal silver bullion. Likewise, silver has a vital role in the human history.
With equal hardness on the Mohs scale, gold and silver are world’s best precious metals. Silver was used as a currency by the Greeks, Romans, Spanish and the Mughals in the early ages.
The history of silver bullion stretches longer than the history of other precious metals such as platinum. In the Great Recession that occurred ten years ago, Silver maintained its hold as an affordable precious metal in the global market too. Being extensively used in therapy and industry, silver is inevitable to progress in 2018.
We will teach you to recognize the best time to invest in silver and gold for best ROIs. Depending on the best attributes that fit your needs, pick a precious metal from the below and start investing NOW!
Less volatile in bull markets, gold is a precious metal with a vibrant history. It is bought by Central Banks and is 70 times costlier than silver. Is gold all that better than silver?
- Appearance: Metallic Yellow
- Thermal Conductivity: 318
- Industrial Use: 12%
- Melting Point: 1337.3 K
- Availability: Lesser than Silver
- Cost per Ounce: $1,360 per oz. (24 Karat)
With the total supply of silver per year stretching to 1 billion ounces against 120 million ounces of gold, you might wonder why the silver industry is making lesser money today. Ranging from plentiful availability to easier mining, silver has many benefits that make it an affordable precious metal to invest in 2018.
- Appearance: Metallic White
- Thermal Conductivity: 429 W
- Industrial Use: 56%
- Melting Point: 1234.93 K
- Cost per Ounce: $14.54 per oz.
7 Reasons for Investing in Silver Bullion
You want to invest in a precious metal that will protect your assets and multiple it over time. Would you benefit by choosing the costly gold bullion or the affordable silver bullion?
Once priced more than platinum, silver is the most cost-efficient precious metal to invest on Earth now. It is a legal tender that stood shockingly strong during the great recession that hit us ten years ago. However, is that all you need to know before investing in silver bullion and coin bars? Listen to the expert’s analysis of silver investment below.
- Silver to Gold Ratio in Prices
When you divide the price of gold by silver, the total infers silver investment are profitable. Simply put, the gold to silver ratio a century ago was 47:1, which fell to 30:1 during the recession and rose to 61:1 in 2018. In short, buying silver is much more economical than investing in gold.
Given that the demand of silver in countries such as China and India multiplied in the last decade, silver investments are ideal currently. Moreover, just as the silver-gold ratio fell to half during the recession, silver proved it can seize the precious metals market anytime. A proof of this is the $3000+ gain of $100 silver investment in 1970 to 1980 against $2000+ gain of gold during the same timeframe.
- Medical Applications of Silver
From antibiotic coating to surgical equipment and wound dressing, silver is crucial to medical science today. When nanomaterial made of silver is used on external wounds, it offers a resilient antibiotic coating.
Investing in silver bullion is also ideal because it is widely used in Antibacterial Creams, Catheters, X-Ray Films, and Prosthetics. Silver is also expected to spearhead the advancements in reconstructive orthopedic surgery in the coming future. As silver is antiseptic too, it is widely used in cardiac devices too.
- Monetary Use of Silver
When you invest in silver bullion, you can forget about the counterparty risk like in the case of stocks. You don’t need any officer or third party with additional documents to verify the cost of your silver bullion whenever you wish to sell it. Moreover, silver has a long history of controlling the economy of the world and will have zero default risk in the future too.
Unlike bonds, the low value of silver makes it practical for small purchases too. Silver is a solid asset that may not fare ideally in a bear market but, progresses vertically in precious metals bull market.
- Industrial Merits of Silver
From battery to solar panels, silver is used in major industries that run the world today. The cell phone in your hand contains 1/3 g of silver in it. The revolutionary method using silver to make energy from photovoltaic cells in solar panels will increase use of silver by 70% in 2018.
In addition, silver is also the primal catalyst for plastic. As a result, 56% of total silver production per year goes to industrial uses. Hence, investing in silver is risk-free if you’re banking on the industrial advances in the coming years.
- Silverware and Silver Jewelry
Ornamental use of silver is dated back to thousands of years from now. Silver bullion is one of the five metals used by man at the start of civilization. Today, cutlery made of silver symbolizes the wealth or richness of the household too.
Gemstone jewelry made from precious silver is durable and long-lasting. As silver is too soft to make jewelry, it is mixed with alloys to make 91.25% silver. This type of silver is also known as 925 Sterling Silver. According to statistics, 33% of the total silver production goes to silverware and silver jewelry making, every year.
- Decline of Silver Hoarding by Government
In the history of silver bullion, you saw how different monarchs and kings coveted silver ores and mines to convert it into national currency. Read more about History of Silver Bullion.
Referred to as silver inventories, there has been 73% decline in government inventories since 1996. As coin making is no longer viable, government inventories are dissolving their hoarded stocks. Moreover, experts speculate this is the best chance for silver investment due to the rise of silver bullion for industrial uses.
- Silver Bullion, Coins, Bars and Rounds
If you’re a collector, you know the historic value of Silver Eagle to Silver Maple Leaf. These are collector’s edition silver bullions amongst precious metals such as platinum bullion. Collectors buy silver bullion, silver coins as precious metal assets.
From banks to dealers, you can find silver bars everywhere. Moreover, silver bullion bars and coins are an expert way to make a substantial investment in solid silver. As silver is a precious metal, it will always retain the price it was bought for!
In a Nutshell
Silver is not an official currency of any country at present, but it is still a legal tender in all parts of the world. From jewelry to medicine and chemical uses, silver is a trending metal right now. Silver investments come with the least of risks and hence, the industrial use of silver keeps plummeting.
If you’re worried about where to invest your hard-earned money, choose the right precious metal based on the 7 reason checklist above for investing in Silver, smartly!