Spreading your investment across different financial products would be the way to go. Precious metals are one such category of assets that you should explore, even as a novice investor. Historically, precious metals have proven to be a better hedge against market uncertainties. In addition, they act as a haven in the face of economic turmoil.
If you want to invest in silver in Australia, be it bullion or coin, you can start exploring your options at Gold Stackers.
How Can Silver Add More Value to Your Investment Portfolio
According to a report, after the economic slump of 2020, silver is seeing increasing demand across all major sectors like industrial, jewellery, silverware, and photography. The metal is expected to see a 15% increase in demand by the end of 2021.
Let us look at reasons why silver should be a part of your portfolio.
Silver Could be Used as Money
Silver has an intrinsic value associated with it. Until recently, silver coins were used in monetary transactions. The precious metal offers higher liquidity than gold for small purchases. One can sell off Investment-grade silver almost anywhere in the world. Instead of selling an ounce of gold, you could sell a coin or bar of silver to meet your financial requirements.
It is a Physical Asset to Bank on in the Digital World
Silver in bar or coin form is a hard physical asset you can store. It cannot be hacked into or fall into a phishing scam. With the financial world becoming tech-savvy, security is a prime challenge every investor has to overcome. A physical asset can add value and also protect your portfolio in the digital arena.
Silver Has the Potential to Grow
From a historical standpoint, silver prices have much more potential to grow compared to gold. According to a news report, owing to various factors such as economies reopening, and industrial demand, the silver price has increased by over 70% in the last year. Visit online vendors like Gold Stackers for silver buying options.
You can Safeguard Against Risk with Silver
Silver is a tangible asset with a limited supply. The prices of such commodities tend to go in the opposite direction for other financial products like stocks. In scenarios wherein the market has slowed down, investors turn to silver as they hold an intrinsic value and provide a hedge against risks. If you are looking for a well-balanced portfolio, then silver should be a part of it.
Increasing Industrial Demand
The growing demand for a limited commodity is sure to have an impact on prices. Silver is used in various electronics, solar panels, and even batteries. On average mobile phones alone have 1/3 gram of silver in them. With increasing industrial demand, the prices of silver are also expected to maintain their high in the coming years.
Choose Silver as Your Investment Option
The per-ounce cost for silver is much lower than its famous counterpart, gold. If you are new to investing, your portfolio will benefit from silver investments rather than jumping directly to gold. Silver prices may swing over the short term, but they are a relatively safer and tolerant asset in the long run.