What are the benefits and drawbacks of investing in physical silver bullion? How much is silver worth? Will it hold its current value? Those are just some of the questions we will seek to address in this article.
Protection From Volatile Markets
When economic and political uncertainty increases, precious metal assets, like gold and silver, become more appealing to investors than currency-backed investments. You can protect your wealth from volatility in the financial markets by investing in silver.
Cheaper Than Gold
While many people want to invest in physical gold bullion, the entry point for silver is much lower. Small investors often can’t afford to buy gold coins or bullion bars. For instance, you can buy 1/4 oz silver coins for under $25, while a 1/4 oz gold coin costs over $400 subject to exchange rate changes. Silver bullion is more versatile and practical than physical gold.
Like cash, sliver offer holders a degree of anonymity. Financial transaction privacy might not be important to you today, but the world is changing and sliver offers some spending privacy protections.
While bonds, mining stocks, cash, and other financial products are popular ways to store wealth, unlike sliver, they are not back by physical commodities. Even if all the world’s financial markets collapse, silver bullion has inherent, real value as a metal, so it will always be worth something.
Higher Returns Than Other Precious Metals
As an ounce of silver is a lot cheaper than an ounce of gold, you stand to make larger percentage gains when silver prices increase. To calculate the current gold/silver ratio you need to divide the spot price of gold by the spot price of silver.
Here are a few of the drawbacks Of buying silver bullion:
Risk Of Theft
The risk of theft when holding physical assets is a major drawback of buying silver coins and bars. Securing your sliver in a bank safety deposit box can incur recurring fees and storing valuables in your home puts you at more risk of a burglary. If you do decide to store sliver in your property, make sure you invest in a fireproof security safe.
Difficult To Liquidate Quickly
In order to be able to spend silver, you need to convert it into your local currency. The time it takes to buy and sell physical sliver can be a drawback in times when you need immediate access to your wealth.
While silver is generally classified as a relatively safe investment, it often doesn’t perform as well as other investment options like real estate or stocks.
Listed here are just some of the many pros and cons of investing in physical silver. You need to decide for yourself whether the pros outweigh the cons.
Also, before you buy any silver, it important to find out the answer to the question “How much is silver worth today?” This is because many websites that sell silver coins and silver bullion bars have list prices way above the current market value of the precious white metal.