A smart investor weighs all his options well before investing his money. Especially when it comes to investing in assets like gold or silver, one should carefully think about the returns on investment. Despite gold has always been investors’ first choice, silver slowly is winning hearts by providing lucrative returns in the short duration. Today we are at a juncture when including silver in an investment portfolio has become a must for any investor. We have compiled five compelling reasons that will inspire you to invest in silver.
1. Silver is Equal to Money
(image courtesy: bullionstar.com)
For thousands of years, silver has served as money. Silver just like gold is the ultimate form of money. A few years ago, the sudden announcement of demonetization turned notes worth Rs. 500 and Rs. 1000 into just pieces of papers. This will never happen with precious metals like silver. Everything else apart from the metal you buy is a paper investment. It includes no counterparty risk like stocks, bonds or other forms of investment. It has no default risk and in the long term, it provides a better return than everything else. Aren’t these reasons sufficient for starting investment in silver from today itself? One smart way of investing in silver is to purchase silver jewellery online, which is widely in trend these days.
2. Unlike Paper Investment, It is a Hard Asset
You have invested Rs. 5 lakhs in the stock market, but can you hold it in your hand? Gold and silver, the hard assets which you can literally hold in your hands and encash whenever you want are the safest forms of investment. In addition to that, this is a type of investment that you can keep private or confidential if you wish to. With the increasing rate of cybercrime, silver is one safe way of investing money and earning lucrative returns than digital assets.
3. Poor Man’s Gold
(image courtesy: silver-phoenix500.com)
Gold currently stands at staggering Rs. 51,85,420 per kg. So, if you spend about Rs. 52,000, you get a gold coin of meagrely 10 grams. On the other hand, the all-time high price of Silver has been Rs. 77,840 per kg which is far cheaper than the yellow metal. This is the reason why silver is called ‘poor man’s gold.’ With gold slipping beyond the middle class’s reach, investment in silver has significantly increased. Not only this, in July, silver gave 6% returns just in a single day. Within 3 days, investors earned a whopping Rs. 8500 per kg. Affordable price and attractive returns are two major reasons why investors are now inclining towards the white metal.
4. Easy to Sell
It is easier to sell silver than gold. Silver coins and bars are sold in any corner of the world. In addition to this, people do not prefer to sell gold coins or biscuits to meet their small financial needs. Here silver is a handier option than gold. In comparison to gold, silver comes in smaller denominations and that is why it is easier to sell silver than gold.
5. Demand is Continuously Growing
Do you know there is silver in your cell phone? Silver, as a metal has unique characteristics due to which its industrial use is growing by leaps and bounds every year. As per research, between 2017 to 2019, 1.916 billion grams of silver were just used in making mobile phones. Even in the automobile industry, the demand for silver is increasing. Installing solar panels is an emerging trend to promote green energy. Silver is used in making photovoltaic cells used in the solar panels. Silver plays a vital role in the production of plastic and chemicals as well. In short, the demand for white metal is increasing in the global market with each passing day. With growing demand, its price is all set to increase in the coming times.
If you have the acumen to analyze the future, you can earn a lot of money in the commodity market. Just like other commodities, silver is traded into the future market, and investors can buy and sell the white metal there. It is always advisable to consult a commodity market expert if you wish to invest in silver or gold commodities. Buying silver jewellery is a safe and secure way of investing in silver.