For centuries, undervalued and overshadowed by its yellow cousin, Silver has remained second fiddle in precious metal investments. Experts at Bullion India believe that Silver may have better days ahead, here are few reasons one must buy their share of silver for a long-term investment.
- True money: Silver offers investors an opportunity to move into true money with a high potential for gains in the future. In the case of an economic depression or world crisis, those holding precious metal investments will be secure and have an upper hand.
- ‘Common Man’s Gold’: Silver is highly affordable due to lower set prices that range closer to basic metals rather than precious counterparts like gold and palladium. The acquisition of silver hence is much more possible for larger populations compared to gold.
- Insurance/Hedge: Repeatedly history has witnessed that most periods of printing money have often lead to periods of inflation or hyperinflation, which lead to severely destabilized political steadiness and end in warfare, autocracies, or an administrative collapse. These times of hardship often lead to a failure of currency, holders of monetary metals such as silver have an opportunity to protect one’s wealth but also increase the same substantially. At currently low silver price level, the cost of insurance against turmoil is extremely cheap relative to the consequences of collapsing of the world’s economy.
- Industrial & Medical Applications: Unlike other precious metals like gold, silver has numerous applications in the industrial and medical fields. With the increase in industrialization, silver’s demand is increasing, probing one to invest in silver, the useful metal.
- Technology: Silver has become a part of many electronic and digital products. Medical appliances due to silver’s anti-microbial properties incline towards the metal. Its need in products such as mobile phones, cameras, laptops, monitors makes it popular. Further, the uniqueness of the molecular and chemical properties of silver are evaluated, the higher its demands are expected to rise.
- Low Inventory of Silver: Silver may seem abundant in the paper market today, however, the physical markets for silver are constrained and restricted. The steady decrease in the ground-level supply of silver is owing to reduced levels of silver available for excavation. The future rarity and increase application of silver, make it favourable to invest in silver in India and globally.
- Future Supply Uncertainty:The world’s maximum silver is mined from nations affected by political chaos, labour conflict, and emergent economies. Mexico and Peru are the largest producers of silver, both of who are stricken with insufficient infrastructures to accommodate the growing demand. Other producing nations have a list of similar difficulties, which can have significant strains on supply in the future.
- Demand in India and China (Emerging markets): A constantly increasing demand in the emerging markets contributes to a new need for physical silver bullion. This indicates an increase, in people who invest in silver in India and china.
- Gold to Silver Ratio: In conclusion, the strongest indicator of silvers bright future is the gold to silver ratio, which may fluctuate but returns to its historical average of 12 to 1. There is a great potential to invest in silver at these ratio levels. The current affordability of silver brands it the most demeaned assets in history. Bullion India offers pure 24-karat silver bars and coins for purchase at affordable spot silver prices. The growing reliance on silver, its abundant application and, technological usability, make it an excellent choice to invest in silver.
Must Read: Guide to Buying Silver in India