Why Silver Should be your First Choice of Investment in 2019
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When it comes to precious metals, silver is immensely more versatile than any other. It’s an excellent choice for jewelry, a common component of batteries and electrical contacts, and at the same time, a lucrative investment vehicle.
Speaking of investments, silver is a popular choice among investors due to its ease of affordability. It’s a lot more inexpensive compared to gold, platinum, and real estate, and at the same time, can be easily resold in the market.
Let’s look at some benefits of adding silver to your portfolio:
Positive correlation with inflation
According to the World Economic Forum, economies around the world are weakening. When general price levels elevate, investors start flocking toward safe havens—precious metals being one of them. Silver’s inflation hedging properties can be understood from the fact that when a large number of investors flock toward an investment, its demand increases. As per the rules of economics, high demand drives high prices.
This is also because silver has inherent value. Unlike paper currency, it serves other purposes beyond being a store of value.
Diversity of uses
Even if the investment market for silver isn’t performing well, its industrial demand will always persist. This is why it’s said that silver is a lot more than just a monetary metal.
With an increase in digital advancements, silver has become more and more important. It’s a common manufacturing component for mobile phones, computers, and cameras. The tiny electrical contacts that are used in switches have significant traces of silver.
Other than that, silver also has a role to play in medicine. Due to its antimicrobial and antibacterial properties, a silver foil is wrapped around wounds to promote quick healing. As an added benefit, it’s also non-toxic.
Silver also makes good reflecting material, when polished. Most glass and mirrors in your home are polished with thin coats of silver.
The perfect gold to silver ratio
If you think you’ve done enough by adding gold to your portfolio, you might be wrong.
As an investor, you need to strike a balance between gold and silver to diversify your portfolio. If you look at historical trends, you’ll find out that the gold and silver prices mostly move in opposite directions.
This means that if you want to incur minimum losses, you ought to have both silver and gold in your portfolio. This strategy will make sure that your investment yields profits even if the market does not move in the direction that you anticipated.