The price of silver has risen in recent years, generating expectation in many investors. Here we will give you an approximation to this market for commodities, metals, but above all, we will talk about silver and its investment options.
Investing in silver: can you invest in silver? Is it advisable to invest in silver? Is it profitable to invest in silver?
First and foremost you should know that this is a highly coveted metal, in the jewelry industry, and also in the electronics industry gold ira companies reviews, but its extraction is slow, so like any other precious asset when its demand is high and its supply or extraction is slow the goods are priced almost automatically.
Another advantage of investing in silver is that this is a non-corrosive product with the ability to last over time, that is, it has an intrinsic value, but it is also another good, like other metals, for example gold, and like other tradable goods called commodities that are listed daily in a market and this allows us to speculate regarding their price if other factors that affect said price are taken into account in order to make the best possible investment
So, we can say that if you can invest in silver. But: Is it advisable to invest in silver and gold? It is profitable?
The answer is that it can be profitable, but first you must understand that goods are bought cheap to sell them expensive, therefore if the price is “expensive” today you should analyze twice whether or not you are going to invest in silver, and ask yourself: Can it be even more expensive? Well, specialists believe that it is worth investing in silver because in recent times the weakening of the dollar favors precious metals, in addition to the fact that the demand for jewelry is supposed to be increasing. My perspective is that you should always put at stake the probable profitability of investing in silver as opposed to the possibility of investing in other assets that can give you 20% profit such as shares, or cryptocurrencies, once these two returns are contrasted, decide on one of them. There you can ensure that it is worth investing in silver.
How to invest in silver in the bank? Where can you invest in silver?
There are many banks that will allow you to invest in silver, they have various products related to this metal and gold. For example:
- Investment funds that invest in the commodity market, in this way you will be indirectly investing in silver from your bank.
- Other banks even directly allow the purchase of an ounce. Or ideal coins for collectors and/or investors.
- There is also the possibility of investing in the commodity market, or futures, here you will buy a contract, which will vary its price or quote. For that you must hire an intermediary or online broker who will act as a broker.
Before considering any silver investment mechanism, we want you to be clear about the advantages of investing in silver but also the risks of investing in silver.
The advantages that explain “why” invest in silver:
- It maintains its value, it is like a strong currency that is not affected by deterioration or inflation.
- It has been showing good dynamics in its price and there is speculation that it may continue to rise.
- Its price is always related to the dollar, and when it weakens, metals such as gold and silver tend to rise, remember that we are living in a period where the dollar is not having its best moment.
- It is an important input in one of the industries of the present and that will continue to exist as is the electronics industry.
- It is a savings mechanism that if you have it “physically” at home does not have rapid liquidity, that is, you will not go out to spend it, or liquidate it in the market, as you could do with dollars, or even with another online instrument. You cannot have a share in your house, but if you can have an ounce or silver bar in your house, savers who have metals are generally proven to have them for a longer time.
Risks of investing in silver:
- The opportunity cost can be negative, that is, you can invest in assets whose profitability is known to be certain and close to 6-7 percent in dollars, such as US government bonds.
- Their future cannot be easily predicted. Since it depends a lot on the fall or weakening of the dollar, an almost geopolitical issue.
Investing in silver for the long term: is it convenient?
We believe that other possibilities may be more convenient, the historical price of silver was in 2011 reaching 1900 dollars an ounce, and today it is located with a growing and strengthened price, but there is no certainty of reaching it in 3 years (long term). a 60% return, as if you could achieve it by investing in the stock market. So we can say that it is a saving option rather than an investment one. In addition, the dynamics of the price of metals is to have a growing trend in the short term and likewise, begin to sink quickly. They do not have a solid trend in the long term.
Invest in freedom silver, what is freedom silver?
This legal tender in our country is a good option for collectors but also for those who want to save. Is it good to invest in a silver ounce of liberty? We do not believe that investing in this currency is advisable, but if you accumulate them, with a perspective of saving. As historically, saving in metals was done or was done by our grandparents, it can be a good option to later make an investment. If we look at it from this point then if it is convenient to invest in freedom silver.