Investing in Silver: The How and the Why

If you’re looking for a successful investment, know that now is one of the best times to invest in silver. Not only is silver one of the most popular for jewelry, but this precious metal is reliable for telecommunication, medical, and industrial technologies. There are a lot of potentials for silver which make it heavy in demand.

Here are three specific reasons you should invest in silver soon:

  1. The demand for silver is on a rise.

Silver is not only more affordable than gold, but it also has a growing demand that may even topple the demand for gold soon. Its value per ounce in November 2017 was $17.13. The silver forecast for 2018 expects silver to reach an average of $18.60 per ounce before peaking to $20.20 per ounce due to its rising demand.

In 2018, the total demand growth is estimated at 2-percent. In fact, there is expected to be a greater industrial demand for silver going all the way through 2019.

  1. The silver supply may be decreasing soon.

According to Focus on the User, silver around the world is being mined at a rate of ten ounces for every one ounce of gold, and of course, the available supply will only last so long. After all, silver is not infinite, meaning it is slow to replenish itself, and thus, can be considered nonrenewable in our environment.

The scarcer the metal is, the higher its value will be. But in order to benefit from the higher value of silver in the future, your best bet is to invest now while it is still lesser in value.

  1. Global inflation will arrive shortly.

From a historical perspective, the price of silver inflates about 2-percent for every 1-percent of global inflation. Since 2016, the trend towards inflation has risen, expected to be approximately 1.40 percent. Now, the inflation expectation is close to 2.10-percent.

That said, purchasing silver before its next inflation is a slick move. But know that the value of silver fluctuates more than gold, especially in the midst of a global inflation. That can be either good or bad.

How to Invest in Silver Correctly

Now that you know why it’s important to invest in silver, let’s talk about how to ensure you’re investing correctly.

 

  • Decide what type of silver investment is right for you.

 

You may find that buying actual silver is more convenient for you than opting for a silver exchanged traded-fund (ETF). When it comes to purchasing physical silver, there are many options at hand to pick from: bars, bullion coins, jewelry, or even collectible coins.

But not every type of silver investment will be feasible for everyone. Do the proper research. Look into the pros and cons of each type of investment before you jump into it, presuming it will be successful.

  • Purchase popular silver coins.

If you decide to invest in silver by purchasing coins, be on the lookout for popular silver coins, particularly .999 fine silver, as not every silver coin has the same value. Buying 90-percent silver and 1-ounce silver coins are among the best for survival purposes.

Some of the best coins to invest in to date include the American Eagle, Canadian Maple Leaf, Australian Koala, Austrian Philharmonic, and the Australian Kookaburra.

  • Make sure you’re purchasing real silver

Those who are investing in silver by purchasing it directly, it is crucial that you make sure you’re purchasing silver from a reputable source. Conduct research on the company to give you peace of mind that they are in fact selling authentic silver.

Even if you do your research, you’ll still want to test your silver once you receive it. Besides having an expert test your silver, you can do it yourself. Look into doing the ring test, ice cube test, Fisch test, nitric acid test, magnet test, acid test, and bleach test.

  • Know the differences between silver, silver-plated, and sterling silver.

Not only should you know the differences between silver, silver-plated, and sterling silver, but it is also important that you know which one you are receiving when you go to purchase physical silver. Keep in mind that if you do chemical testing on your silver, this may partially or completely devalue your silver objects.

To verify the type of silver you’ve received, check to see if your silver item contains an inscription of “ster” or “sterling,” which will indicate that it contains 92.5-percent silver, or in other words, is very close to pure silver. However, if you see an inscription of “IS,” this will mean that your silver item is international silver, also known as silver-plated.

  • Don’t overinvest.

Even with excellent prospects for investing in silver, it is never wise to invest too much into any asset. Putting all your cash into a silver investment is risky for you financially and equally as risky when it comes to the potential return on your investment. If something happens to the market, you can kiss your precious money goodbye.

  • Decide if you’d rather invest in gold or another precious metal instead.

While investment is looking great for silver, looking into other precious metals to invest in, such as gold, is still important to ensure you’re making the right choice. While gold is more expensive to invest it; however, the return on your investment can be greater. But remember that the value of any precious metal can change overtime.

Additionally, look into other things to invest in too, apart from previous metals. After all, if an economic collapse occurs, bartering necessities will be more important than metals. It all comes down to your particular risk appetite and if you’re down for investing in something that is mainly considered a luxury item.

Conclusion

Before investing in silver, it is important to understand why making the move would be most relevant for you. Equally as important is ensuring that you invest in silver the right way and that the risks stack up to your appetite. If done successfully, you can receive a favorable annual return on your investment overtime.

 

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