Invest in Silver

Why Should You Invest In Silver Over Gold?

Is it worth it to invest in silver?

Investing is a tough game and requires a strong mindset, a sound knowledge of market stats and a decision-making ability. Without these, one can’t get a profitable outcome in investing.  If you are an investor looking to invest in precious metals, you have mainly four different options to invest in – Gold, Silver, Platinum, and Palladium. In this article, we will focus on choosing between Silver and Gold.

For investing, you need to choose an option from these two, whether you will select Silver or you will select Gold. The decision to buy gold or silver can’t be made on an assumption, it needs deeper analysis on market stats. Let’s see, where to invest in and why.

So Why Invest In Silver?

There are many reasons to choose Silver over Gold. Like gold, silver is a precious metal with a high intrinsic value as well. Silver is a form of commodity (refers to investing) and as a form of money. Not only that, due to its inherent value, silver has been used for thousands of years as a standard of exchange.

Top Reasons to Invest in Silver over Gold

#1 Demand of Silver in China | Invest In Silver

The demand of silver in China is skyrocketing and will increase continuously for the long term. Silver is mostly used in solar panels which is the largest application of industrial silver. It will be a wise decision to invest in silver because of its excessive demands in the area of renewable energy.

#2 Silver is Cheap | Invest In Silver

The most common reason to invest in silver over gold is the price tag. Silver is much cheaper than gold. You need a small budget to start investing in silver compared to gold.

#3 Easier to Liquefy | Invest In Silver

One of the best reasons to invest in silver is that it is much easier to liquefy if you want to convert it into money. Silver can be sold easily compared to gold.

#4 Uses | Invest In Silver

In a large variety of various technologies and industries you will find silver. On the other hand, you will find gold mostly in jewelry and investment industry.

#5 Smaller market | Invest In Silver

You also will find Silver used in many areas, but has a much smaller market. Silver has a tendency to swing high and low (high volatility) more frequently which can make a big difference to its price. By moving a much smaller amount of money into silver you can get nice upswings in price (and downswings too).

Silver is an affordable commodity for those who have a small budget for investing or for an average investor. The great thing about silver is that you only need a small amount to start investing. Silver is nearly as precious as gold to help maintain your lifestyle. It is well believed that you will get much more satisfaction investing in silver rather than gold. If you can’t afford to buy gold, silver can be a great option for those that want to hold precious metals as part of their portfolio.

gold

Top 2 Reasons Why You Should Invest in Gold

Because gold has a recognized value worldwide, it had been used as a universal currency dating back to the Byzantine Empire.

However, upon the signing of the Bretton Woods Agreement back in 1944, the US dollar has replaced the gold in being a universal currency. But that didn’t stop gold from being a valued asset. It may have ceased to be a currency but not a store of wealth. However, many developing countries still used it as a backer to their devaluing currencies. Many years have passed, and gold still remains a priceless treasure.

When Richard Nixon removed the gold standard in 1971, other countries followed suit. It may have been erased from the memories of many people, but even when it was no longer a currency, it retained its value by being an excellent investment form.

With the rise of new investment instruments, some people would ask if in today’s modern era, is gold still considered a valuable investment? There are lots of reasons why gold makes for a significant investment. Two reasons are:

1. An Excellent Getaway from The Paper Currency Experiment

The fiat currency which we have all believed to be the ultimate form of money is only an IOU. Meaning to say that it is a representation of a particular credit that countries are issuing. The paper money phenomenon first started out as an experiment. Eventually, when society became more accepting of paper money as the standard of financial systems, many government units have lost control of the economy. And, thus, they resorted to printing massive amounts of money. This, in turn, resulted in hyperinflation.

Hyperinflation has happened time and again in the past. For some people, it may be best to leave the past behind. However, you can’t ignore the saying “history repeats itself.” With that in mind, one factor that makes gold an excellent investment is that it can serve as a replacement for fiat currency.

People may refuse to accept paper money as payment if your currency has been devalued. However, they will always take gold because it is the single asset that has value all over the world.

2. The Relationship of the US Dollar and Gold

There is no denying that the US dollar is the leading currency worldwide. However, just like other fiat currencies, the US dollar also tends to fluctuate through ups and downs.

There is an intriguing association between the US dollar and gold. When the dollar is at a high value, gold appears to be heading towards that direction. However, when gold is purchased at favorable prices, the dollar also goes up in value. Meanwhile, when the dollar has low value, the price of gold tends to go up.

The US dollar is currently at an all-time high. But instead of waiting for a currency fluctuation, you’d rather start investing in gold. That way, when the dollar swoops in value, you will have an excellent exchange for gold.

To Buy or Not to Buy

The main goal of investments is to increase and protect one’s wealth. The topics discussed above cover the primary reasons why gold is people’s go-to when it comes to financial problems.