Silver is a promising investment that you need to be thinking. Silver is considered a tangible asset and has no default risk. Most importantly silver is considered as real money. However, silver has another great advantage – its extensive industrial applications. For this reason, an investment in silver can prove quite profitable for any prospective investor.
No matter your reason for choosing to invest in this precious metal, remember that you can purchase silver from suissegold.ch and store it to your benefit in Switzerland in our secure bullion storage.
Silver is Currently Underrated
The recent numbers in the Gold/Silver Ration have shown us that right now it is the right time to invest in silver. At the moment, silver is underrated compared to gold, reaching a historical high of the past 26 years. However, this precious metal is bound to outperform gold in the future. This can be predicted by taking a look at the historical figures of the Gold/Silver ratio, as simply by returning to the historical average will bring profit to the silver owners.
Silver is in High Demand
More than half of the annual demand in silver these past years is connected to this metal’s industrial uses. Silver is used in many industries, most notably in various alloys, batteries, dentistry, LED chips, medicine, nuclear reactors, photography, photovoltaic cells, semiconductors, touch screens, water purification, just to name a few. It is clear to see that as the economy grows, silver’s price will be affected.
Today, the biggest demand for silver comes from the U.S.A., Canada, China, India, Japan, South Korea, Germany, and Russia.
As new technologies are developed, only new applications will be added to this precious metal, along with the pre-existing ones.
Inventories of Silver are Shrinking
The past few years, the amount of silver that was used surpassed the amount that was produced. This affected silver’s price and if this situation continues, one thing is certain – silver’s price is bound to rise even more.
One more thing to keep in mind is that governments no longer use precious metals for the production of coins. For this reason, they have cut down the size of their inventories of silver. So, in a future deficit in silver for industrial use, governments will not be able to supply the industries, which will also affect this metal’s price.
Silver’s Supply is Declining
Another thing that affected silver’s price is that this precious metal’s supply is declining. After the disaster of silver’s price in 2011, miners were forced to cut their costs in order to profit. One way of doing that was by stopping developing new silver mines. Even though silver is still obtained as a byproduct from base metal operations, there is still not enough new silver entering the market. Considering the high demand that this precious metal has, it is plain to the eye that its price in the future will be heavily affected.
Diversification of your Portfolio
A good reason to choose silver as an investment, apart from the ones mentioned before, is to diversify your portfolio. This way, if a certain asset of your portfolio is devaluated, you will not suffer as much. Another great thing of adding a precious metal to your portfolio is that they have low negative correlation to the other assets normally contained into a portfolio, leading to a significant decrease of risk.