Seeing the price of sister metal gold riding the wind and waves all the way, some investors may be wondering whether silver, as a precious metal, is a good investment option and whether it is appropriate to buy silver now?
Although the silver market is smaller and less popular than gold, in terms of its investment value, it is indeed a very reliable thing to include silver assets in the investment portfolio.
Silver is also a currency like gold
Although silver is not the currency we use in our daily lives, it is undeniable that it still has monetary attributes. In fact, silver, like gold, is the ultimate form of money because it is not created out of thin air, thus avoiding the possibility of devaluation like paper or electronic money. Gold and silver, as real assets, have been playing the role of money for thousands of years. As the best-selling book "Investing in Gold and Silver Guide" says, "For thousands of years, gold and silver have proven their value again and again, forcing paper money to prove itself."
Silver is cheap and has a lower investment threshold
If you were told that you could buy a hard asset for one-seventh of the price of gold, and it would be just as resistant to various crises as gold, would you want to know what this asset is? That's right, it's silver. For ordinary investors, silver is more affordable. If an ounce of gold is too luxurious in your eyes, then silver is your best investment choice.
Silver is an effective portfolio diversifier
Silver is an effective portfolio diversifier and should be a featured component of any portfolio. It can retain value over the long term and provide a buffer for your portfolio during adverse market performance. In the event of a stock market crash, if you are overinvested in riskier financial instruments, silver assets can hedge some of the losses. History shows that when the stock market crashes, the price of silver usually rises, which is not accidental. Owning a portfolio of gold and silver can help compensate for stock market losses and provide a backup source of funds to reinvest in undervalued stocks when the economy recovers.
Silver Outperforms Gold in Bull Markets
Silver is a smaller market, and in fact, even a small influx or outflow of money has a much greater impact on the price than other assets (including gold). This greater volatility means that in a bear market, silver does not perform as well as gold. But in a bull market, silver has the potential to rise far more than gold.
To take a more recent example, we know that gold prices rose 166% from the bottom in 2008 to the high in 2011, but silver prices rose 448% during the same period. We can almost foresee that silver will continue to outperform gold in this bull market.
Industrial demand continues to grow
You may not believe it, but there is actually no product we use every day that does not contain silver. Of all the elements, silver is the most indispensable metal. It has the highest electrical conductivity, the highest thermal conductivity, and the highest reflectivity. From electronics and medical applications to batteries and solar panels, almost every major industry uses silver. Whether you can see it or not, silver is everywhere. Without silver, modern life cannot function properly. Due to these rare properties, silver is increasingly used in industry. In fact, industrial demand accounts for more than half of all demand for silver.
So should you speculate in silver?
The general consensus among traders and market experts is that silver has great upside potential in the long term. Unlike many other asset types, silver is supported by increased industrial use and has relatively limited downside risk, making it the preferred metal for novice investors. In the long run, silver will maintain its strategic importance as a hedge against different market events that could hint at an economic depression.
Trade silver, the first choice is 4E platform
As the world's leading financial asset trading platform, 4E provides nearly 500+ financial products for trading, including foreign exchange, crypto assets, US stocks, commodities, indices, etc. Among them, bulk silver derivatives support 200 times leverage long and short transactions, with a minimum transaction of 0.01 lots, low threshold and low spread, and you can open a position and buy in just 3 simple steps to start your silver investment career!
As the global partner of the Argentine national team, 4E's security and reliability are obvious to all in the industry, and the safety of funds is guaranteed. More than two million users around the world are using it. The 4E platform supports transactions on computers and mobile APPs. The operation interface is simple and intuitive, and it provides 7*24 hours online service. You can get help anytime, anywhere. It is your ideal choice for investing in silver.