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How Valuable is sovereign silver as an investment?

Among the various precious metals, silver is known to have volatile price fluctuations. Yet, just like gold, it is a safe haven asset that can protect investors in all market conditions. Thus, it is a lucrative investment vehicle for diversifying your portfolio and providing a hedge against riskier investment. in times of economic and political uncertainty, especially the kind that has risen during this pandemic, investment in sovereign silver is gaining appeal among serious investors. Even though gold and silver belong to the same asset class and offer almost the same levels of returns, silver is often overlooked.

Yet, to buy silver bars is akin to investing in a valuable investment class because –

  • Though it is cheaper than gold, and more accessible to buy, it is a versatile investment class. Silver coins are easier to break and spend than gold. Physical sovereign silver bullion is easier to trade than gold even though it plays the same role.
  • This brings us to, sovereign silver is cheaper to buy than gold. you can sell and buy silver bars more easily than gold bars.
  • Also, silver does offer better returns than gold as it is around 1/79th price of gold and gives a bigger percentage gain when the prices go up. Between 2008 and 2011, as per GoldSilver reports, silver gained 448% while gold gained only 166%.
  • Cash, stocks, bonds, and all other finance products are digital promissory notes and thus they are vulnerable to market uncertainties. Silver is a finite tangible asset that will never completely crash because of its inherent real value.
  • If you are new to investment in precious metals, then you can opt to buy silver bars instead of a much smaller investment in a gold coin.

Silver is scarce and sovereign silver is its purest form that is minted purely for investment form is easy to trade. 80% of silver is used as a by-product in mining base metals such as lead and zinc. Thus, its supply is unlikely to increase. It does not make sense to recycle small quantities of silver in electrical components so most silver is never reclaimed after its installation. So, while its industrywide application keeps the price of silver fluctuating, the quantity of silver continues to decrease. Thus, among all precious metal investment classes silver gives the maximum opportunities for short-term price rise.

In adverse circumstances, governments have been known to confiscate gold from banks and private citizens. However, silver has never been confiscated, and thus, it provides a better financial safeguard. Now is a good time to invest in sovereign silver in the face of the geopolitical unrest in Central Asia, the pandemic, and resulting threat of massive recession globally. The share markets may plummet, and currencies may get devalued, but the price of silver will hold up because of its huge demand in industries and limited supplies.

You can buy silver bars of world-renowned mints and store them till the pandemic passes and more peaceful times approach for economic stability.

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