You can invest in silver in quite a few ways, and not all of them involve buying the actual metal. For example, silver certificates involve just a certificate that makes the holder the owner, and exchange-traded stocks or ETFs involve trading silver in the same way as stocks. Although you may own stocks of the precious metal, you will not actually own any of the real metal. Considering that one of the benefits of silver is to act as a hedge against a failed stock market or currency, ETFs and silver certificates may not be the best investment methods.
If you want to take full advantage of silver as an investment, start your venture with a 1oz silver bar or coin. Silver bullion bars are one of the most popular ways of investing in the metal. Contrary to popular opinion, these bars are rather easy to store. You can start with 1oz bars and go up to 10oz and even 100oz bars. Their size and shape are ideal for storing in a home safe or a bank’s security deposit box. Legitimate bullion bars also have their weight stamped on them.
Why invest in real silver
Silver offers a lot of potential as an investment, in many ways different from the investment value of gold. As mentioned before, the metal is the second most used commodity; a number of industries find uses in silver, which is a thermal and electrical conductor, reflective, and has no substitutes in terms of physical and chemical properties. In fact, the world has used more silver in the last three decades than it has mined, and silver rarity has reached an all-time high. This, in turn, increases its value as an investment, especially when you have it in your hand as a real, tangible bullion bar.
Are you still skeptical about investing in real silver and diversifying your portfolio? Here are some more benefits you can get by buying silver bullion or coins:
- A balanced investment portfolio
Like other precious metals, silver has little correlation with most other common investment options and financial assets. Its independence from other investments reduces the volatility of your portfolio and keeps it balanced.
- A hedge against inflation
History has proven time and again that silver offers a great hedge against inflation. With the recent recession of 2007 and the still-weak economy, silver may still prove to be useful.
- Low price
When compared to gold, silver is much less expensive and it still has much of the value that gold offers. It is for this reason that silver is often called ‘the poor man’s gold’. If you are new to precious metal investments and want to buy billions, the 1oz silver bar is a good option to start with.
- Added industrial value
Gold does have industrial value, but to a limited extent only. Silver, on the other hand, is used in coinage, jewelry, electronics, superconductivity, water purification, and electronics, among other industries. Silver is not just a pretty precious metal; its industrial and artistic value add to its investment value.
Remember that ETFs and silver certificates are good investment options too, but only physical possession of silver coins or bullion bars guarantees ownership. Owning real silver is not much of a hassle either; the only addition is a small storage fee every year.