According to the Silver Institute and Thomson Reuters’ World Silver Survey 2018, India has risen to 12th place (from the 14th previous year) among the Top 20 Silver Producing Countries. India’s silver market contribution has climbed to 16.9 million ounces, up from 14 million ounces in 2016. India remains one of the most important markets for precious metals such as silver and gold. We are one of Asia’s largest silver exporters, and any changes in the market have an impact on the value of silver on worldwide markets.
If you can’t afford a complete ounce of gold, you may go for silver, which is a far more cheap and trustworthy precious metal. The current silver rate in India makes investing in silver bullions and jewellery a viable alternative. Silver is frequently employed in industrial applications such as solar panels, laptops, and cell phones, in addition to investment. So yet, no other metal has been able to replace it. If you want to invest in Silver as well, you may evaluate prices from several providers and select the finest accessible alternative. Make sure to look up the current price of silver in key cities to get a good picture of where it stands in the market. You can also speak with your financial advisor to learn about more possibilities that are appropriate for your investing strategy.
Is it wise to invest in silver? Why would someone want to buy it? It’s reasonable and even sensible for an investor to consider whether or not a specific asset is a suitable investment. The 10 leading reasons why every investor should acquire silver are listed below.
- Silver is a legitimate currency.
Although silver is not part of our currency, it is still money. In truth, silver, along with gold, is the ultimate form of money since, unlike paper or digital forms, it cannot be generated out of thin air (and hence devalued). We mean actual silver, not ETFs, certificates, or futures contracts when we say “real money.” Those are paper investments, and they don’t offer the same advantages as the ones described in this article. Real silver, the same as gold, is a store of value. This is why.
- There is no danger of counterparty. You don’t need another party to fulfil a contract or pledge if you have real silver. This isn’t true of stocks, bonds, or almost any other type of investment.
- There has never been a default. There is no default risk if you hold real silver. That isn’t the case with practically every other investment you make.
- It may be used as money for a long time. Silver was used as currency more often than gold, according to monetary history!
- Having genuine silver gives you a tangible item that has been used as money for thousands of years.
- Silver is a valuable hard asset.
How many of your assets can you actually hold in your hands? Physical silver distinguishes out in an age of paper gains, digital trading, and currency production being one of the few assets that you can take in your pocket everywhere, even another nation. It may also be as private and private as you desire. Physical silver also acts as a deterrent to all types of hacking and cybercrime. A silver Eagle coin, for example, cannot be “erased,” but it is possible to do it with a digital asset!
- Silver is a cheap metal.
What if we told you that you could purchase a solid asset for around 1/65th the price of gold and it would safeguard you from deflation well too? That’s what you get when you work with silver! It is far more accessible to the common investor, yet as a precious metal, it may help you retain a similar standard of life like gold during times of monetary dilution. Silver might be your ticket to owning precious metals if you can’t afford a whole ounce of gold. This is also true when it comes to gift-giving. Don’t want to spend more than $1,000 on a gift but yet want to offer something tangible? It was only made more inexpensive by the addition of silver.
- For everyday little purchases, silver is more practical.
Silver is not only less expensive to acquire, but it might also be more practical to sell. Perhaps you will never need to sell an ounce of gold to fulfil a tiny financial necessity. Then there’s silver. You may sell only what you want or need at the moment because it typically arrives in lower amounts than gold. For this reason, every investor should have some silver on hand. Keep in mind that silver bullion coins and bars may be purchased almost everywhere in the world.
- In bull markets, silver outperforms gold.
Silver is a very tiny market—so small, in fact, that a modest inflow or outflow of capital may have a considerably higher influence on the price than other assets (including gold). Silver declines more than gold in weak markets due to its higher volatility. Silver, on the other hand, will rise considerably higher and quicker than gold in bull markets. Silver, on the other hand, is gold on steroids! Because the silver sector is still small, we may anticipate this outperformance to continue in the next bull market.
- The Industrial Sector is Expanding
You don’t spend a day without using a silver-containing product, believe it or not. From electronics and medical uses to batteries and solar panels, it’s employed in practically every major sector. Whether you notice it or not, silver is all around you. The number of industrial uses for silver has increased dramatically as a result of these unique properties. In fact, the industry today consumes more than half of the world’s silver supply. Silver is employed in a variety of sectors and products, and many of them are expanding.
- The amount of new supply is decreasing.
After peaking in 2011, the price of silver plummeted by 72.1 per cent during the next five years. As a result, miners were forced to slash expenses in order to make a profit. Exploration and development of new silver mines were one of the sectors that saw significant cuts. It doesn’t take a genius to figure out that if you spend less money hunting for silver, you’ll discover less silver! As this graph of the production from the top ten largest silver producing nations indicates, the drought in exploration and development is starting to bite.
- The global demand is increasing.
Despite the worldwide pandemic’s impact, global demand for silver is increasing. Almost all of the country’s main government mints have recorded record sales, with the majority of them now above capacity. China, more than any other country, is experiencing a surge in demand. This massive market has a long history of cultural attachment to precious metals. And, as its population grows (opposite of what is happening in the West), so will its voracious hunger. This type of demand does not appear out of nowhere. When rising demand meets constrained supply, there will be repercussions sooner or later—and those implications are all favourable if you own the metal.
- The Gold/Silver Ratio Is In Your Favour Silver
Finally, the gold/silver ratio (gold price divided by silver price) might indicate which metal is a superior investment at any particular moment. Especially when the ratio exceeds a certain threshold! In the twentieth century, the gold-to-silver ratio averaged 47:1. Since 1968, the ratio has averaged 56:1, making silver an attractive bargain when compared to the price of gold. As you can see, during the apex of the bull market in 2011, the ratio plummeted to over 30. Early in 1980, it was as low as 14. This ratio compression demonstrates how far silver can surpass its companion gold. It also demonstrates that it is cheap in comparison to gold.
- What is the Best Way to Invest in Silver?
Purchasing real silver is quite simple. You can buy from a local coin shop, but internet companies normally provide better prices. This is due to lesser overhead and the fact that shipping and insurance fees are generally covered with a minimum order (which isn’t very large). Setting up an online account is similar to setting up a savings account, and buying is similar to using the Internet. Your metals may either be sent to you or put into one of our shockingly reasonable storage vaults once you’ve made your payment.
There are multiple forces working in silver’s favour for the near future, as this essay has demonstrated. Silver, like gold, is indeed a monetary metal that reacts to monetary dilution and fiscal loosening. Silver will remain a solid asset to possess until the existing system is retooled to prevent runaway currency production and politicians are more fiscally responsible, according to history.