Is Silver A Good Investment?
What if there’s an opportunity for you to boost your wealth and feel very secure at the same time, would you take it? Of course!
Most savvy investors look for opportunities that increase their wealth and give them a good safety net simultaneously.
There is a financial asset that the majority of people overlook — it’s so undervalued that you can buy it right now deeply discounted. According to the U.S. Geological Society, the asset could be the first periodic table element to become extinct. What is this element (asset) we speak of?
It’s Silver!
Is Silver a good investment you might ask…
Does it make sense to buy silver if it’s thought to be going extinct? Is the investment worth what you would get out of it?
It’s not uncommon for investors to wonder if an asset is a good investment or not. This is especially true for silver, as most people think gold is the better option.
However, given history, there are several reasons you MUST include physical silver to any investment portfolio. And, it’s not just because the price of silver will increase drastically, but now there’s a way silver investors can earn a monthly income from their physical holdings — which is unheard of in the precious metals industry!
11 Reasons You Should Be Owning Silver Right Now
#1 Silver Is Money
Physical silver is where the smart investment is. With silver,
· You don’t have any counter-party risks. Owning physical silver means there is no third-party that has to make good on a promise, unlike bonds and stocks.
· Since you physically own the silver, you don’t run the risk of defaults.
· You can use the money when you want — it’s been used more often than gold in transactions.
· There’s a limited supply to mine and physically own. (demand outpacing supply)
When you physically own silver, you have a financial asset that’s existed for centuries.
#2 You Can Feel and Touch Your Asset
Most assets come in the form of paper profits or digital trading. Physical silver is different, you can actually hold it in the palm of your hands and can use it wherever you go.
Think of physical silver as a tangible hedge against cyber-crime and hacking. You can’t erase silver, but digital assets can vanish in a blink of an eye.
With the rise of cryptocurrencies such as Bitcoin, there’s a rise in demand for other money alternatives. Investors are looking for something that allows them to place money in hedges and away from the stock market.
Bitcoin is a virtual payment system, but it still has an array of issues that must be ironed out such as sustainability and security. Cryptocurrencies may never be stable and resourceful — something precious metals have shown themselves, decade after decade, as an investment commodity.
#3 Silver Is Undervalued and Inexpensive Right Now
If you could purchase a physical asset that is substantially less than gold’s price and offers protection from a financial crisis, would you? Of course, you would!
That’s what silver does for you.
It’s highly affordable for average investors and is still a precious metal that boosts your living standards most of the time even better than gold. Many people can’t afford to purchase an ounce of gold, which is why silver has become such a hot commodity.
Silver prices are highly discounted at the moment, which gives it a great, but temporary buying benefit for those in the U.S. right now. Since this type of currency swings widely in cycles, it can change right before you know it. Right now, the swing is in silver investors’ favor.
Did you know? Huge gains from silver are more than just selling at the high, but also about when buying close to the bottom… an ounce of silver is the lowest we’ve seen in quite some time.
#4 Silver Holds It’s Value, Unlike The Dollar
As a good example we like to go back to the year 1971, when we still had the gold standard and it was fixed to the dollar. One ounce of silver was equal to one dollar, which could buy you around 4 gallons of gas. If in 1971, you buried one ounce of silver and one dollar bill in the ground next to each other, and then fast forward to today… that ounce of silver is now worth around seventeen dollars and can get you around 8 gallons of gas, but that dollar bill can’t even buy you a decent pack of gum these days.
You see, silver has actually increased in purchasing power and that dollar bill, a piece of paper with no intrinsic value that the government can just print, has succumbed to inflation and its purchasing power has plummeted over the years.
For this very reason, silver will continue to shine!
#5 Silver Does Better Than Gold In Bull Markets
The market for silver is small, meaning there’s very little money going in and out of it that impacts its price. When it comes to bear markets, silver will generally fall a little quicker than gold. However, in bull markets, silver will rise much further and faster.
Here are some prime examples of silver doing better than gold in bull markets:
Gain from 1970 low to 1980 high
· Gold - 2,328%
· Silver - 3,105%
Gain from 2008 low to 2011 high
· Gold - 166%
· Silver - 448%
Looking at these examples, it would stand to reason that you could become a lot wealthier while protecting yourself from a financial disaster by investing in silver rather than gold.
When the next bull market hits, it’s likely the same outcome will occur — silver will outpace gold significantly!
#6 Decrease In Silver Inventories
The Silver Institute reported that total silver inventories are much less than what people assume, and since 2014, the supply has dropped quickly. The demand for silver is outpacing the total supply.
How much silver is left in the world inventories? The answer to that is even more important than knowing the answer for gold. After all, silver mining has been going on since the age of civilization and is almost completely used up, which is the opposite for gold. There’s a lot of talk about gold’s ownership, but never about how much of it is left.
Governments and various institutions in the past have held onto silver inventories, but that’s not the case these days. It’s uncommon that governments have much of any silver stockpile at all, the few that do include the U.S., Mexico and India.
Why do governments no longer hold onto silver? Most of our daily coinage developed today are not made from the precious metal anymore, instead it’s used mostly in industry.
#7 Expanding Industrial Use
You may not realize it, but you use silver-developed products every single day. Silver is the most electrically conductive, reflective and thermally conductive element.
Oil is the only industrial commodity that’s used more often than silver. You may not readily see it, but silver is everywhere. It is the most important metal there is. It’s necessary for 30,000 applications among 10,000 industries , including:
· Smartphones
· Solar Energy
· Computers
· Medical Applications
Silver demand is likely to rise with the increase in world population. An increase in the population means silver consumption will also rise. This will cause silver to become even more valuable in the future.
Worldwide silver demand is surpassing mining and current physical supply.
There is no doubt that modern life would come to a slight halt if there were no more silver available. Silver’s rare traits make it a valuable commodity in the industry, which makes up over half the silver demand.
Industrial silver, unlike gold, can be destroyed or used during the manufacturing process. On top of that, it’s economically impossible to recuperate the minuscule amounts of silver from the products that are no longer used. What very limited amounts are recovered will eventually get recycled back into the market.
Of course, with the industries’ ever-growing demand for silver, there are millions of ounces that can’t ever be reused. That is a big problem!
#8 Supply Is Going To Drop
After silver peaked in 2011, the price of silver dropped significantly — a noteworthy 72 percent. This caused miners to reduce their costs to make a profit. One of the areas that was cut tremendously was exploration and development of silver mines.
It’s a no-brainier that if you spend less money and time to look for silver, you’re going to find less of it. A drought in development and exploration is taking hold today. On top of that, low prices have affected the amount of scrap that’s also available. For three years now, there’s been a drop in the silver supply (the first time that’s happened since 1991).
Base metal operations (copper and zinc, for example) have created a byproduct of nearly 2/3 of silver mine supply. These supply sources are also affecting the availability of new metal in the marketplace.
For that reason, there is going to be a peak for silver supply. If demand stays where it’s at or increases, anybody that wants silver may not be able to get their hands on it.
#9 Increase In Global Demand
The demand for silver has increased tremendously throughout the world. Most major government mints have experienced record sales levels with the majority of them already manufacturing at top production.
China and India are two countries where demand is at an all-time high. The markets are well-known for having a cultural attraction to precious metals, and with their population growths, the surge in demand is only expected to rise.
The solar industry is also seeking more and more silver to meet their production. Silver is a great conductor for electricity and heat, which is why they use it in their solar panels.
With electronics becoming more advanced, the demand for silver is only going to expand. What’s happening is that demand is outpacing supply and likely continue to do so in the years ahead.
#10 Silver Wins Over Gold
The gold/silver ratio provides clues on which precious metal you should purchase at a particular time. This is especially true given the kind of extreme ratio that’s going on currently.
In the 20th century, the gold-to-silver ratio was about 47:1. For the 21st century, the ratio is 61:1. Thus, a ratio of 70 or higher is why silver is ideal more so than gold.
However, as you see, the ratio dropped nearly 30 points at the high point of the 2011 bull market. During the early 1980s, it hit a low of 17. This just demonstrates how much silver outdoes gold, and how undervalued it is compared to it.
When it comes to finding an asset with a good distortion between fundamentals and price, there’s no other better asset than silver. It’s a great hedge against inflation, and with the right set of elements could cause the price to skyrocket.
There’s no reason to consult an expert or be an expert to determine the gold/silver ratio, as it’s already at the highest peaks ever seen.
What do investors need to look for to find the best deals? When the market is making its huge correction, and it will, the only asset you should be investing in is silver. You want to buy low and sell high!
#11 Protect Your Wealth the Right Way!
You’ve probably had a savings account at some point in your life. While savings accounts or CDs are a great way to hide money away, the interest they accrue annually are minimal if any, not to mention the lack of preservation.
Now, imagine a savings account that safeguards against inflation. We promise, it’s not too good to be true.
· No fees
· No minimum terms
· Sell or buy whenever
· No obligations or contracts
· Safeguard your wealth from inflation
· Grow your investment with physical silver and gold
Invest wisely and choose an investment that will give you preservation and growth. Add up all 11 reasons and Silver might just be the buying opportunity of a lifetime!
Disclaimer — The above information is provided for informational use and should not be used to make investment decisions for yourself or others. This is a matter of opinion, and any information contained in the above article is deemed reliable, but no warranties of authenticities are included. West Hills Capital cannot be held liable for incorrect or misleading information and is to be held blameless. It’s important to talk with a trusted financial advisor before you invest in silver or other commodity, as well as stocks, bonds, or any other investment types.
