Kyle Jernigan - May 23rd, 2022
Top 5 Reasons to Start Buying Silver
In the Earth’s crust, silver is 68th on the list of most abundant elements. The United States Geological Survey predicts that 530,000 million tons of silver remain underground and are ready for mining.
Peru has the biggest reserves of silver globally, followed by Poland and Australia. Experts estimate peak silver production between the years 2027 and 2038. All silver mines expect to be empty by the year 2240.
In times of inflation and economic uncertainty, silver is a haven. That’s why buying silver is highly recommended and should be a part of your portfolio of physical assets.
To discover more about why you should buy silver, keep reading this article and we’ll get right down to the specifics.
1. Actual Money and a Hard Asset
Silver is money, even though it is not a part of our currency. In fact, when you buy silver, this is the superior type of money because humans cannot create it like they do with paper and digital currency.
Also, this does not refer to a certificate, ETF, or futures contract. This means the physical thing when you buy silver bars, silver coins, and such. Paper investments do not carry the same weight and benefits as the real deal.
When you can hold silver bars and silver coins in your hand, there is no need for a third party to intervene. With stocks and bonds, there is a contract or a promise, which means you need someone else involved.
You cannot default on physical silver, unlike every other investment you can make. Silver is a real asset that has been in use as money for thousands of years before our time.
A pile of old U.S. Quarters. Pre-1965 half dollars, quarter dollars and dimes are made of 90% Silver.
2. Cheaper Compared to Gold
Now, listen to this. The price of silver is approximate 1/65th the price of gold, and it protects you from inflation just the same.
Buying silver is more affordable to the typical investor. If you cannot afford gold bars, then you can buy silver bars. During times of monetary dilution, it will help you keep your standard of living.
It’s the same for gifts, too. If you cannot afford gold jewelry, then you can buy silver jewelry, for example.
3. Buying Silver is Practical
Not only is buying silver cheaper than gold, but it is also more practical, especially when you want to sell it. Usually, silver sells in denominations much smaller than gold. This means that you don’t have to sell large portions, you can sell just what you need to at the time in smaller increments.
That’s why it is a good idea for every investor to have some silver in their portfolio of assets. Plus, you can sell silver bars and silver coins just about anywhere globally.
Stacks of 1 oz Silver Krugerrands from South Africa.
4. Better in the Bull Markets
Silver is a tiny market. It’s so small that a minimal movement of cash in or out of its industry affects the silver price to a greater degree than you would see when it happens to gold.
In bear markets, because of the greater volatility, silver will fall more than gold does. In the bull markets, however, the silver price will soar higher and faster than the gold price will.
That’s why, if you wanted to, you could make the comparison that silver is kind of like gold, but on steroids.
5. Inventory is Falling While Industrial Use is Increasing
Institutions and governments would hold a large inventory of silver in the past, but today, stockpiles are at an all-time low. The U.S., India, and Mexico are the only countries worldwide that warehouse silver. Since 1996, inventories have been dropping.
One reason that governments no longer hold a large stockpile of silver is because of currency. Coinage is no longer made of silver.
If something changes in the future and silver needs are challenging to meet, governments have what they need to support them.
While stockpiles are low, industrial use is on the rise. In fact, you cannot go a day without using some product that has silver in it. From electronics to batteries to medical applications, even solar panels, silver is all around us.
The ways we can use silver in industrial applications have skyrocketed. Its industrial use takes up over 50 percent of silver demand.
Meanwhile, today’s budgets are drastically smaller for exploring and developing new silver mines. If you look less, you will find less. If demand is up, but fresh supply is falling, that could be a problem, don’t you think?
How to Buy Silver
You can purchase silver from a local dealer, pawnshop, or online. A specialized dealer will allow you to buy silver bars versus just silver coins.
It's simple to overpay, so do your research on physical silver. You want to know that you are getting a fair price and not overpaying.
If you purchase silver coins, you may pay extra for their collectability. This means that you are not overpaying for the silver content because it is more unique than that.
Keep in mind that buying silver, like all physical assets, puts you at risk of theft. You’ll have to safeguard your silver or even insure it if you wish.
Where to Buy Silver
With Investor Crate, you can purchase a monthly delivery of wealth you can hold. All you need to do is select a price tier and your preferred asset. That’s it.
Check out our crate options in silver, gold, platinum, and combos. Buying silver is buying wealth you can hold on to during times of inflation, so it would be a good idea to contact us right now!
This is in no way to be considered investment advice. Past performance is no guarantee of future results. Asset allocation and diversification do not ensure a profit or guarantee against a loss. Keep in mind that any form of investing involves risk and you should always consult with your financial advisor before making any financial decisions. Investor Crate, LLC., it's subsidiaries and staff will never advise you on any asset as our aim is to provide a fun and affordable service should you decide to purchase Precious Metals.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.