Since ancient times, silver has been used to make tools and a wide range of other goods. And you can be sure that its use in modern industry will not be going away any time soon. No matter how tough the economic situation gets, there will always be a demand for essential goods, and the use of this precious metal in the manufacture of various goods will continue.
According to Thomson Reuters, in 2014, one of the world’s biggest silver importers, India brought in a whopping $4 billion worth of silver, and the top exporter was Mexico which sent out roughly half the amount — $2.2 billion of silver into the global markets.
When it comes to being a form of money or medium of exchange, people usually consider silver as secondary to gold. But it is very likely that it could surpass gold as the primary medium of exchange in the future.
Silver and gold share the same attributes that make them excellent for sound money. Supply remains rare, and you cannot print precious metals out of thin air like bank notes or paper money, thus giving each piece of metal a steady purchasing power.
Investing in Silver
When you invest in silver, it ensures that you have a stable form of money that preserves your wealth. You can benefit from this regardless of the state of the economy. But in times of significant financial turmoil, holding silver is especially assuring. You must also keep in mind that ‘inflation’ is not an increase in prices, but an increase in the money supply. The consequence of monetary inflation is the increase in prices.
Compared to gold, global populations can attain the acquisition of silver more easily. As the prices of silver continue to rise, investors will further move away from stocks, bonds, and real estate. As silver becomes more affordable, it is poised to become “common man’s gold“.
Insurance Policy unlike any Other
Throughout history, most printing episodes have been accompanied by pronounced inflation periods, or even extreme cases of hyper-inflation, which causes severe destabilization of a nation or the culmination of a political collapse from warfare and/or destructive dictatorships.
If you take a look at these periods, you will find that holders of monetary metals such as silver were able to capitalize off these unique periods. Even if it seems like these possible outcomes are improbable, you can protect your wealth by owning silver. Like an insurance policy, you may feel that the probability of the event is low, but you will find that the benefits largely outweigh the cost when fire strikes.
Emerging World Demand
The populations of China and India have shown a huge appetite for silver and gold, making them two giant markets for these precious metals. An emerging market investment demand will play an important role in the new demand dynamic for silver bullion.
Some of the largest untapped markets for industrial and consumer electronic usages are supportive of the monetary aspects. Demand for technologies and appliances which require silver from developing nations is set to significantly increase within the next few decades.
True Money
With silver and the potential for substantial future gains as it continues its current cycle, you get the opportunity to move into true money, which is an actual store of value. When you acquire silver that has intrinsic value and keep yourself insulated from the policies that destroy wealth, you can make sure that you keep yourself and your family financially protected.
By diversifying your free investments into silver coins and your 401k or IRA into silver assets, it allows you to effectively come up with a hedge when there is a slide in the market. Once the market crashes, it is not likely to have an adverse effect on you as some of your silver assets can be converted into cash.
Investing in silver can help you weather sharp downturns in the market. It can also make sure that you are in a position to take advantage of market recoveries. When you invest in precious metals, it can help you stay liquid in times when you require liquid assets to take advantage of unique opportunities that arise in the market.
There are many advantages that come with silver and you should consider this type of metal for your portfolio. Whether you are looking to invest in silver bullion with a broker or purchase the precious metal in smaller amounts, they are both salient options and should be contemplated so that you can reap all the benefits that they have to offer.