For those who closely observe the bullion market know that investing in gold bullion is a profitable decision in the long term. We all know how good gold is when it comes to earning profits, but that should raise even more questions in a smart mind regarding gold’s close cousin, silver. It has always been thought of as second, but that doesn’t make it any less of a good investment option!
Here are 8 undeniable reasons that are good enough to explain why silver should be a part of your portfolio:
1. Silver flourishes during market crisis
In times when the stock market crashes and every other investment option, including other precious metals lose value, silver is one metal that will do far better. This is because the central banks will alter tack in order to increase market liquidity.
2. Silver is one of the most bullish markets of all metals
As per historical data, silver has been one of the most bullish out of all the other precious metals. Even if at times this doesn’t hold true, silver will at least perform well when stock market isn’t good, and gold is rising, giving you a hedge.
3. When you invest in silver, you’ll find less competition
This is because everyone is busy with all the other precious metals. Because most people invest more in gold and other metals, silver has a lower price, making it an easy and cheap investment. Moreover, if you have the patience to keep it for a longer term, there are high chances you will make big profits too.
4. Silver is an industrial metal
This is always going to help its price stay at the higher side, going by the law of demand. No matter what, silver will usually have an industrial demand.
5. Just like Gold, silver is also a hedge against inflation
It will have an intrinsic value, which will never let you down even when the paper currency falls apart. Like gold, silver is money too, and it always has your back.
6. It has always been a good metal in the past
Silver rises when gold rises, it rises when the stocks fall, and it is a cheap metal to invest in. What else does a smart investor need in order to make long-term gains?
7. Silver has a positive correlation with gold
So when the stock market is not doing great, there are high chances gold will do good. But silver has higher chances of doing even better as during trying times, gold will be expensive, thus there is chance that people will flock into silver.
8. Silver has a low cost of production
It has a lower cost of production, because of the competition between gold and silver, declining the production of silver. This makes it easier to make profits in the long-run.
All said and done, gold and silver are two of the most advantageous precious metals of them all. And as they say, all that glitters is not gold. Sometimes, it can be silver! If you are interested in starting investment in silver, install Augmont app: and you can get live silver and gold price updates.