Investing in precious metals is a great way to diversify your portfolio and hedge against stock market crashes and downturns. Believe it or not, more than 12 percent of the population currently owns gold as part of their investment portfolio.
However, gold isn’t the only type of metal available to investors. Silver is rapidly becoming one of the most sought-after metals on the market.
If you’re new to precious metal investing, you’re likely asking yourself, “is silver better than gold?” While the answer isn’t simple, there are a few compelling reasons you should start investing in silver now. Here’s what you need to know.
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It’s More Affordable
Gold almost always has a high price tag. This is because it’s the most in-demand precious metal actively traded on the market. With that high level of demand, investors are able to net high sale prices.
This makes it hard for newer investors to get started. If you do succeed, you’re often relegated to buying small portions of gold or get forced into collecting small trinkets like jewelry if you want to build your investments.
Silver, on the other hand, has a much lower selling price. This means you’ll be able to invest in more shares of silver for less than you’d spend investing in even a small amount of gold.
The more you can invest in silver, the easier it is to build your wealth and diversify your portfolio with low-risk investments.
There Are More Buyers
Though gold is always in high demand, that doesn’t mean that it’s easier to sell. The asking price for gold often keeps investors from being able to buy even small amounts.
If you invest in gold alone, you may find it difficult to sell when you need to free up cash. Fewer qualified buyers means longer waiting periods to sell your gold.
One of the main reasons why silver is better than gold is that there are more qualified buyers available at any given time. The lower prices mean silver is more accessible to more investors. This means you’ll find it easier to sell even large quantities of silver whenever you need the money.
Silver Has More Uses
Most investors consider gold to be the most valuable metal out there, but that doesn’t mean it’s the most useful. In fact, according to Wholesale Sparkle, silver has more uses both as a form of currency and in commercial or industrial applications.
Even if you can’t sell it to a private investor, you may be able to sell your silver to a corporation or up-and-coming company. This means you won’t have to spend time hunting down the perfect buyer. Instead, they’ll come to you when you need them.
As technology improves and evolves, it’s likely that industrial demand for silver will only increase. Remember, high levels of demand often mean higher sale prices and more money in your pocket.
The Supply Is Dwindling
As with all precious metals, the natural supply of silver will eventually get tapped out. Mines will stop yielding the metal and investors will have to work with the existing supply in circulation.
Though there are still mines actively producing silver, the amount those mining companies are pulling out is starting to shrink.
The less often that new silver hits the market, the more the silver in circulation will be worth. You can use this to your advantage and buy silver at relatively low prices now so you can turn around and sell it for a higher price in the future.
Silver Typically Has Higher Resale Values
The biggest difference between silver and gold is that gold’s value tends to stay consistent. This means it’s less likely to lose value when the markets crash, but it’s also less likely to increase in value when the market is growing.
Silver is slightly more volatile meaning it increases in value when other investment types crash. This means you’ll be able to sell your silver for a higher price when other investors are panicking and losing money.
It also means that your investments will appreciate over time more rapidly than gold. For investors looking to make as much money as possible without spending tons of cash upfront, silver investments make the most sense.
It’s Less Likely to Get Confiscated
During times of extreme crisis, there’s always a chance that governments will take possession of private collectors’ gold. They do so to back their currencies and (in theory) reduce the impact of an impending economic collapse.
Though they can do this with any type of precious metal, governments are almost always more likely to confiscate gold over silver. This is because gold is widely considered the standard for currencies across the globe.
Once this happens, you’ll find it almost impossible to recoup your investment.
Though silver can work as money and backs currency, it’s less in-demand. Governments aren’t known to go after private silver collections or require investors to sell to them at rock-bottom prices.
This means you’ll be able to keep your investments longer even if the economy tanks.
Is Silver Better Than Gold for Investors?
Diversification is the key to building a balanced investment portfolio. However, for investors looking to answer the question, “is silver better than gold?” the answer is both yes and no.
It depends on what you’re trying to accomplish with your investments.
In an ideal world, every investor would choose to invest in both silver and gold. This allows you to take advantage of gold’s stability while also investing in silver whose value will grow more slowly over time.
However, if you’re just starting out and want to get into the precious metal trade, silver is a great place to start. The low prices make it easy to invest your money fast and the potential upside for the metal is almost limitless. Just make sure to invest in other types of commodities to protect your money and make planning for your future easier in the long run.
For more tips and tricks to help you take control of your investment strategy, check out our latest posts.
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