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