• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Business Finance Articles

Your First Financial Choice....

  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Pros and Cons of Investing in Silver

Last Updated on June 14, 2020 By Mirjam Makking Leave a Comment

Just like everything, investing in physical metal like silver also has both pros and cons. But if the silver investment is profitable for a person, it may not be for the other.

But in General, Silver is a profitable investment for the future.

Nowadays, prices of precious metals are rising which increases the greed of investors to buy these metals. So that they could earn a profit in the future. Investors are wondering to get these precious metals to preserve them in difficult times.

Table of Contents

  • The Silver Investment Pros
    • Tangible Assets
    • Digitally Secure Wealth
    • Cheaper than Gold
    • Mobility in Prices
    • Persistence in Silver Investment
    • Secrecy
    • Easy to Use
    • Dense, Potable and no Requirement
  • Why it is Bad? Cons for Silver Investment
    • Liquidity Problem
    • Risk of Stolen
    • Interest Rate
  • Conclusion

The Silver Investment Pros

Tangible Assets

There are many forms of wealth like stocks, bonds and other forms of financial products, they are no tangible because all the dealings are processed digitally in these kinds of wealth.

While in the case of metals, silver is a tangible asset because this is the investment you can hold in your hand. And it does not need any extra constant money for its maintenance or special care. It is a physical metal that cannot be destroyed by fire or water and the passage of time does not affect its usage.

Digitally Secure Wealth

It is a physical wealth, not digital stored money. If there happens a disaster in the digital world of banking then you would not prefer online investments. You will prefer investments away from the web which may be investing in silver. It is the asset you have with no fear of loss because of disturbance in the digital world.

Therefore, it does not have any connection with the internet and bank accounts, which is a big shield against hackers. Hackers can never have any access to your physical wealth. Therefore, it is protected from the bad intentions of hackers.

Cheaper than Gold

If you cannot afford gold to buy then your next step should be toward silver. Because silver is cheaper than gold. Therefore, silver is more reachable to small investors to make dollars. It leads you to improve your standard of living as gold.

For example, an investor wants to spend $1000 on precious metals, he cannot buy even a few ounces of gold. While on the other hand, 50+ ounces of silver has a price of about $1000. Thus, silver is more affordable than gold.

Mobility in Prices

Like everybody knows that the prices of precious metals are increasing day by day. There may also a decrease in price but it is for a very short interval of time with less percentage of decrease.

Anyhow, the prices of gold and silver both are increasing. But silver prices increase more than that of gold. It means, for an equal interval of time the percentage increase in the price of silver is more while the percentage increase if gold is less.

Let’s take the example of previous experience for good understanding, from 2008 to 2011 silver gained its value 448% while gold gained only 166% for an equal period of time. So, average investors have a great opportunity to earn more profit by investing in silver.

Persistence in Silver Investment

By taking a birds-eye view of past experience, it is determined that whenever in any country currency’s value may go up or down but silver has its own value in the market. Silver like metals are acknowledged by their value. Therefore, they have to endure their value while currencies may fall down.

Secrecy

In this age of democracy, no one would want to show all of his personal assets to the government. One cannot hide their digital assets from the government. However, silver offers you the secrecy of your assets. When people would invest in silver and convert their some assets in the form of white metal then they can easily hide their wealth (how much they want) from the investigation of government. This is an important point of democratic politics.

Easy to Use

If one of the precious metal investors needs some money then he would not want to sell his complete ounce of gold for a little need.

And, one ounce can easily be sold to fulfill needs. Therefore, many people buy and have silver ounces in any form (coins, bullions, bars or other forms), sell a small piece and have remaining for the future.

Dense, Potable and no Requirement

It is a dense material. Therefore, you can hold silver bars (valued a large number of dollars) in your hand easily but it will be very difficult to handle this amount in the form of bills and paper. This means that it takes a smaller space than dollars of equal value.

And, there is no need to have special skills and knowledge to buy. Therefore, anyone can buy and he can take it to anywhere in the world where he wants.

Why it is Bad? Cons for Silver Investment

Liquidity Problem

When you buy the silver, it may be in the form of bars, coins or ounces. But whenever you make a deal or want to buy something, then you cannot be able to use it in its form.

So, for this purpose, you have to first convert it into the currency of your country and then you can use this currency for any purpose.

Risk of Stolen

It is common that more your assets you have in your home the more will be danger of being stolen. So, having precious metal also demands security against theft.

In case, if silver is deposited in the deposit box of bank or somewhere else, it can cost you in the form of security fee/charges.

Interest Rate

One of the cons of silver investment is that it does not produce any interest rate. If you have silver for the purpose of earning a reasonable profit you should have to wait for the increase in price which may take time.

Conclusion

After getting knowledge about all these pros and cons of silver investment, the investor can take decisions according to his own point of view to decide whether to build up his stocks of silver. Timing is the key factor for those people who want to earn profit from white metal.

Filed Under: Investment & Money Tagged With: Metal Investment, Pros Cons, Silver

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I accept the Terms and Conditions and the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

The Importance Of Understanding Bonds Before Investing

There's an increasing interest in investing among the … [Read More...] about The Importance Of Understanding Bonds Before Investing

How To Get A Liquor License In Los Angeles

Consumption of alcohol is one of the most preferred … [Read More...] about How To Get A Liquor License In Los Angeles

What Cryptocurrencies Are Likely to Explode in 2021?

Making a profit with cryptocurrencies means following a … [Read More...] about What Cryptocurrencies Are Likely to Explode in 2021?

How did the USA phone number list help the American Healthcare Businesses

Businesses from the States have been using tools and … [Read More...] about How did the USA phone number list help the American Healthcare Businesses

Why You Should Always Have a Lawyer Look Over Your Contracts

No matter what sector your business operates in, you … [Read More...] about Why You Should Always Have a Lawyer Look Over Your Contracts

How to Cash Out Ethereum – A Guide for Beginners

With the latest craze around technology, digital … [Read More...] about How to Cash Out Ethereum – A Guide for Beginners

What You Need to Know About DVR Trucking

Technological advantages keep on getting better. It is … [Read More...] about What You Need to Know About DVR Trucking

How to Master Personal Cash Flow Management

Do you ask yourself the same question every month – … [Read More...] about How to Master Personal Cash Flow Management

Dan Calugar Outlines 9 Macro Technology Forces for 2021

To stay ahead, business and technology leaders must … [Read More...] about Dan Calugar Outlines 9 Macro Technology Forces for 2021

Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

A timely business loan is a boon for small businesses. … [Read More...] about Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

4 Benefits of Investing in Technology in 2021

Nowadays technology has become so pervasive that, it … [Read More...] about 4 Benefits of Investing in Technology in 2021

Difference between Business Analyst and Project Manager

An organization can have both a business analyst and a … [Read More...] about Difference between Business Analyst and Project Manager

5 Best Cash Advance Lenders in the USA

Are you in need of quick money? I’m sure that’s why … [Read More...] about 5 Best Cash Advance Lenders in the USA

Change Management VS Project Management

Often people get confused between project management … [Read More...] about Change Management VS Project Management

Similarities Between Leadership and Management

Management is the efficiency in climbing the ladder of … [Read More...] about Similarities Between Leadership and Management

Help with Hardship – 5 Options That May Be Available To You If You’re Close to Bankruptcy

One of the most significant stressors in life is money. … [Read More...] about Help with Hardship – 5 Options That May Be Available To You If You’re Close to Bankruptcy

5 Places to Consider Investing Your Money In 2021

Investment may be the furthest thing from your mind … [Read More...] about 5 Places to Consider Investing Your Money In 2021

5 Fantastic Online Services That Can Help You Get Out Of Debt

Paying your bills late, skipping payments, and not … [Read More...] about 5 Fantastic Online Services That Can Help You Get Out Of Debt

5 No-Fuss Forms Of Advertising That Offer An Impressive ROI

From the steel carvings and papyrus inscriptions of the … [Read More...] about 5 No-Fuss Forms Of Advertising That Offer An Impressive ROI

5 Ways Your Business Can Benefit From Influencer Marketing

Marketing has always been a dynamic field, but it's … [Read More...] about 5 Ways Your Business Can Benefit From Influencer Marketing

Most Viewed

Business Growth Business Ideas Business Needs Business Tips Career Advice Career Development Career Guide Career Options COVID-19 Credit Card credit card reviews Credit Score Debt Management Differences Employee Entrepreneurship HRM Import-Export Importance Investment Loan Provider Loans MCQs Online Marketing Organization Pakistan Partnership Past Papers Payday Loan Payday Loans PPSC Production Pros Cons Publicity Quick Money Tips Roles and Duties Startups Strategies Students Help Tips Top10 Types UK UK Banks USA

Recent Comments

  • saira on PPSC MCQs: Curriculum Development
  • Mehnaz kosar on PPSC MCQs: Curriculum Development
  • alvena on PPSC MCQs: Curriculum Development
  • Sara on PPSC MCQs: The Muslim of the Subcontinent & Their Education
  • zahid on PPSC MCQs: Curriculum Development
  • David Walker on 4 Efficient Tips To Find The Best Real Estate Agent
  • Ty Law on MDX500 Review – Is this Broker the Right Choice for You?
  • Varun sharma on Difference between Business Analyst and Project Manager
  • Varun Sharma on Laptops for Gamers under range of 40k-70k
  • Michael Carolan on Principles of Life Insurance Policy

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow on Google News
  • Follow on Facebook
  • Follow on Twitter
  • Follow on Medium
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018 BFA - DMCA.com Protection Status .