Gold has a long history as a store of value, but silver can provide similar benefits for a fraction of the price. It is much more affordable and accessible to small retail investors.
Unlike gold, which is only used in jewelry and as a currency, silver has a broader range of industrial uses. In fact, more than half of its supply is used in industry.
1. It’s More Affordable
Silver is often called the “poor man’s gold.” This makes it a great choice for investors who have a small budget. It’s also a good option for gifting precious metals to friends and family.
Per ounce, silver tends to be cheaper than gold. This makes it more accessible to small retail investors who want to own the precious metals as physical assets.
However, buy silver Melbourne price is more volatile than gold, and its prices can rise more in bull markets and fall more in bear markets. This volatility can make it an attractive option for speculative investors who like the potential to capitalize on price fluctuations.
2. It’s More Versatile
Silver is a precious metal that can be used to make jewelry, art, and coins. It also finds use in dentistry, electronics, photography, mirrors, and soldering and brazing alloys.
However, it is a soft and malleable metal that needs to be mixed with a hardier metal to achieve its full potential. That is why silver alloys are made.
This makes it an ideal asset to diversify your portfolio and hedge against inflation. It can also help you avoid losses during market downturns or in an economic crisis, which is why it has become a popular investment choice for investors.
3. It’s More Valuable
Many people think that silver is a better investment than gold because it is less expensive. However, it is important to remember that silver and gold are both precious metals.
Unlike gold, which has only limited industrial applications, silver is used in a wide range of industries. It is used in smartphones, solar panels, medical equipment and more.
This makes it more sensitive to economic changes than gold, which has a much smaller demand. During periods of economic growth, silver’s demand can grow rapidly. This could lead to increased silver prices, which is beneficial for investors.
4. It’s More Stable
If you’re looking for a safe-haven investment that can help protect your portfolio against inflation or market downturns, silver is the answer. The precious metal has a history of stability and often outperforms gold during boom times as well as during periods of economic turmoil.
Silver is a hard asset that’s easy to hold, can’t be hacked (something that digital assets and paper currencies are susceptible to), and has no counterparty risk. It also doesn’t depreciate in value like paper currency can, making it more dependable in tougher financial times.
5. It’s More Valuable Over Time
Silver is a valuable metal that has been used by humans for thousands of years. It’s highly conductive, possesses anti-microbial properties and can be found in applications such as solar energy, electric automobiles and medicine.
Despite its lustrous appearance, silver tarnishes quickly and needs to be polished to restore it to its original state. This makes silver less practical for small purchases.
However, silver’s industrial uses make it a good portfolio hedge during recessions and financial crises. It also helps protect you from the effects of a global economic downturn and political uncertainty.
6. It’s More Valuable Over Time
The supply of gold is much smaller than that of sell silver bullion Perth. It can fit in just over three Olympic-sized swimming pools, while the annual silver supply is only 1.74 million metric tons.
Despite its relatively small supply, silver is an increasingly popular investment because it can be used for a variety of purposes. It’s also a key component of many innovations, including cell phones, solar panels, and batteries.
During periods of economic growth, silver prices tend to rise as demand grows. This makes it a safe haven asset, especially in times of market volatility.