In times of economic turbulence, investors have turned time and again to the precious metals market to find an investment that will protect their wealth through the most difficult of times. That’s not to say that gold and, in particular silver, are entirely recession proof – the precious metal markets experience peaks and troughs just like any other form of investment.
However, when investors are in for the long haul, prices of precious metals have been seen to enjoy long-term growth, and in a world where nothing is ever 100 percent certain, they certainly represent the next best thing.
A look at the silver market
When the global economy plummeted ten years ago, the price of silver went into a period of sustained growth. As we have enjoyed the green shoots of recovery, so the value of silver has tailed off a little – does this mean it is likely to plummet and everyone should be selling? That seems very unlikely.
In fact, most analysts draw the opposite conclusion and feel this is the perfect moment to invest in silver and other forms precious metals. Industrial demand is on the rise, particularly in the electronics industry and renewable energy sectors, but the recent blip in value has meant the mining companies have felt the pinch, so supply is actually slightly lower than it was five years ago.
Increased demand coupled with reduced supply is an equation that even the most amateur of investor can solve and this could indeed be the right time to buy.
How to buy silver
In a world where we are accustomed to everything being virtual – contactless payment has largely eliminated the need for cash and phone apps will soon make even debit and credit cards obsolete, there is something comforting about silver in its very tangibility.
The easiest way to invest in any precious metal is the time-honored method that has been around for generations: to go out, buy it and keep it somewhere safe. The exact form it takes is down to personal choice. You might decide to invest in silver dollars, which have the added benefit of being collectible, and therefore have a value that goes beyond being a function of their weight and the current commodity price.
Alternative ways of investing
While most people feel the tangible nature of silver is one of its primary benefits, the idea of physically taking possession of precious metal does not appeal to everyone. After all, you need to look after it, keep it safe and then decide where to take it in the event that you choose to sell.
A silver ETF provides another way to get a piece of the action without needing to invest in a safe. Essentially, a silver ETF is a mutual investment fund that tracks with the price of silver. It provides the benefit of the precious metal’s market resilience but even more flexibility, as it is possible to buy and sell your investment at the click of a mouse.