Why Physical Silver Makes Sense
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by the economy and geopolitical trends that will most likely place impact on your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
Silver is a valuable commodity that should be included in every investor’s portfolio. Physical silver is commonly viewed as real money when compared to fiat currencies. There is a finite supply of silver, and we are constantly depleting our resources due to technological and industrial applications. Owning physical silver coins is a way to protect your wealth from the risks associated with debt encumbered investment vehicles.
Supply and Demand
Silver is widely used in industrial and technological applications. Silver is used in jewelry, tableware, water purification, mirrors, dental alloys, brazing and solder alloys, electronics, batteries, engine bearings, solar technology, physical currency, cars, and as a store of wealth. Global silver supply must constantly be replenished to offset the use industrial and technological applications. Due to the current market value of silver, the global supply deficit is growing. With the presence of inflation and geoeconomic uncertainty, more investors are utilizing silver as a hedge to stabilize and protect purchasing power. The supply and demand fundamentals in silver point to a rising price moving forward.
Inflation Protection
Unlike fiat currencies, which are simply printed on paper, silver must be mined and produced. There is a cost to produce physical silver. When inflation is present, the cost of equipment, insurance, energy, and employment rises. When inflation is present, the values of goods, services and commodities rise in value. Silver is a commodity that investors commonly own as a hedge against inflation and a long-term store of wealth. For example, in the 1990s, the U.S. had a balanced budget. At that time, silver was approximately $5 per ounce. Since then, the U.S government deficit has exploded, and the purchasing power of the dollar has fallen. Meanwhile, silver has increased 450%. For investors who have chosen to invest in physical silver instead of holding U.S. dollars in the late 1990s, their cost of living has decreased over the past 25 years. How much wealthier would you be if you had stopped inflation from eroding your purchasing power? Savvy investors own physical silver for this reason.
Past Performance Future Projections
Over the past 25 years, silver has gained 450% in value. Currently, silver will need to increase approximately 70% to reach its previous all-time high. Based on past performance, silver is currently more undervalued than gold. Silver is expected to continue to rise in value moving forward. This trend is expected to continue due to inflation, industrial and technological uses, supply and demand fundamentals, and geopolitical tensions. With silver at only $29 per ounce, investors should seriously consider diversifying in this precious metal before it moves higher.
Future Projections
1) According to Investing Haven’s research team, “Our second bullish target of $48-$50 is likely going to be hit mid-2025.”
2) Bank of America Metal Strategist Michael Widmer sees the silver price rising to a 2026E average of $35/oz.
3) Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce.
Conclusion
In times of geo-economic uncertainty or when inflation is present, silver coins are utilized as a hedge and can help offset the risk associated with debt. Physical Silver should be viewed as the concrete foundation to all portfolios and a key component to proper diversification.
FAQ: Your Key to Understanding!
Why hold physical silver?
Owning physical silver coins is a way to protect your wealth from the risks associated with debt encumbered investment vehicles.
Is it hard to sell physical silver?
With Orion Metal Exchange, you can guarantee transaction pricing with a simple phone call.
How many ounces of silver should I own?
Investors should own physical silver. The amount owned should be based on an investor’s personal needs and goals.
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by the economy and geopolitical trends that will most likely place impact on your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
