Although, of course, the answer to that question depends on many variables and, ultimately, on the investor’s will, in this post, we will clarify some questions regarding investing in this precious metal.
Among the main reasons that attract small investors to silver are the following:
- Investing in silver is very simple: You do not have to use stockbrokers or understand how the financial markets work or trust third parties to carry out the investment on your behalf. It is as simple as approaching a trusted and duly accredited dealer or dealer and purchasing physical silver in the form of small bars or coins that are also highly collectible, which can provide added interest when investing.
- Silver is cheaper than other precious metals: At the time of this writing, the price of silver is around $ 25 an ounce. This means that, for a price lower than 30 bucks, it is possible to buy an ounce of this metal. From there, the limit is set by each investor, but the entry price is not a deterrent, as in the case of gold (an ounce of this metal, right now, is trading at more than $ 1,730).
It is a very versatile metal: The world’s largest investors do not stop investing in silver, even if it is a small portion of their investment portfolio. The reason is that it is an essential metal for many markets: according to Statista, two-thirds of the demand for silver in 2019 and 2020 went to industrial sectors such as photography, photovoltaic applications, and medicine, in addition to jewelry, silverware, and physical investment, in bullion and coins.
- It can be the gateway to other investments: Many small investors feel intimidated when investing in tangible assets. Silver can be one of the best inputs to investing in physical commodities . You can enter at a very low price and see how it goes. If the experience is positive, the investor may be inclined to invest in more valuable metals, such as gold, platinum, or palladium.