There is no doubt that gold is the most precious metal investment, but silver also has many advantages. With many industrial uses, silver can grow as economies grow again and can also be a valuable hedge during a recession.
Demand for silver has gown because of its a tangible safe haven and a diverse industrial uses. Many financial experts, industrialists and geologists agree that the world is approaching a year of silver shortages. Due to its unique chemical composition and qualities, more people will be looking to buy silver bullion Melbourne than gold. These dramatic shifts in the supply and demand have made silver a key investment choice for prudent investors in recent years.
Ratio of gold to silver
In Roman times, the ratio of gold to silver was 12:1, meaning it took 12 ounces of silver to buy 1 ounce of gold. In late 1792, the U.S. Mint Act established a legal ratio of 15:1, which was maintained until it was repealed in 1873. In the 20th century, the average ratio of gold to silver was 47:1. The ratio is now closer to 80:1, breaking the relationship between the two metals over the past hundreds of years and making silver very valuable. If you are looking for the benefits of investing in silver, this is one of them!
Cheap silver price
Since the price ratio of gold to silver is 80 to 1, silver is a very cheap investment vehicle for investors who want to buy silver bullion Melbourne. This means, you can buy more silver than gold. This is one of the advantages of silver that has made it popular as an investment tool. Affordable for small to medium sized investors, buying and selling silver is easy with advertised spot prices and no bargaining!
Silver has produced positive returns over the past decade. Silver hit $ 48 an ounce in 2011 as investors flocked to commodities to escape the convergence of financial markets. So we see that silver is like gold, not just a commodity. It functions as currency in its own way, offering investors an efficient hedge against market risks. Historically, the silver price has followed gold. It is an important factor that increases its attractiveness to investors. Silver has a good outlook, making it an attractive asset class for investors. Gold and silver are expected to rise in the future as investors look to avoid risks associated with a falling currency, cryptocurrencies and traditional companies being overtaken by new and emerging industries.
Buying silver coins or bullion separates this part of your wealth from the banking system and protects it from various counterparty risks caused by financial institutions. This is one of the advantages of silver that many investors do not consider its importance.
Like gold, one of the main advantages of silver is that it is a safe investment. With high levels of government debt and the increased printing of “new” money, traditional currencies have weakened significantly. Precious metals such as silver should be viewed as alternative stores of wealth. Political unrest in many parts of the world threatens the stability of investment markets, forcing many investors to buy precious metals to protect the value of their capital portfolios.
Because of the safe-haven nature of silver, one of the benefits of investing in silver is that it can provide excellent hedging and balance in a diversified portfolio of assets. Silver allocation allows investors to increase their risk appetite for other asset classes while balancing the risk of their entire portfolio. By physically owning silver in the form of bullion or coins, it offers a different diversity from traditional fiat assets threatened by the recent global economic downturn.
What are the benefits of investing in silver?
As a precious metal, silver has the potential for capital appreciation due to increased demand and naturally limited supply. Investing in silver is cheap compared to buying gold and there is no corresponding risk when buying in coin and bullion form. It can be considered a safe haven in the volatile stock market. Silver has also benefited from increased industrial demand for silver during technological advances.