5 Reasons Why You Should Buy Silver

We live in uncertain times. Information is available in amounts unseen in history. One source might say go, while another says stop. 

Whom do you believe? What can you trust? Making that determination seems tougher than ever. 

As a result, many suffer from paralysis by analysis—what some refer to as thinking too much. Getting stuck in the maze and not knowing which way to turn typically leads to turning in circles and going nowhere at all. You need clear facts to make clear decisions.

Thriving amid uncertainty takes great planning and acute decision-making. It may not be enough to prepare for today, fully knowing that tomorrow is coming fast. Great investors plan for both. They choose something good not only for today but something with the potential to be great tomorrow. 

That’s why more and more investors who want to protect their present and their future buy physical silver. 

Why should you buy silver? The list of reasons investors buy silver is long and varies according to individual needs. But here are some of the most common:

• Silver is cheaper than gold.
• Silver is a hedge against inflation.
• Silver has historically outperformed gold in bull markets.
• Silver is a tangible asset.
• Demand for silver is growing rapidly.

Let’s dive a little deeper. Then you can decide for yourself whether you should join the legions of shrewd investors who buy silver coins online for direct delivery or investment in a Silver IRA.

Silver Is Cheaper Than Gold

Some investors buy silver because it is cheaper than gold. As of April, 2023, you could buy about 80 ounces of silver for the price of 1 ounce of gold.

Lower prices also mean that silver is more accessible to purchase. Paying $24 an ounce to buy silver coins is obviously more affordable than paying $2,000 for an ounce of gold. With fractional (less than an ounce) choices readily available for both investment-grade silver as well as junk silver, buying silver is even more attainable for a variety of budgets.

Keep in mind that silver’s all-time high price is right around $50 per ounce, which means that you can get a tangible commodity, even in this period of inflation and high prices, for approximately half its all-time high.  

Silver Is A Hedge Against Inflation

Inflation is tricky. It sneaks in, and before you know it, your dollars have less purchasing power than they did before. 

During inflationary times, investors often buy silver and other precious metals to maintain their store of wealth. That’s why you’ll often hear silver and gold referred to as safe-haven assets. When the seas get rocky, silver can be just the strip of dry land investors need. You buy silver coins. You own silver coins. It’s there and will always be worth something. 

Inflation can also drive up the price of silver. Because inflation is typically brought on by high levels of consumer spending, an increase in demand for products that rely on silver means that silver prices should increase with the demand for the metal.

Silver Has Historically Outperformed Gold in Bull Markets

The term bull market describes a situation in which stock prices rise by 20%, usually after stock price declines of 20%. Historically, silver has outperformed gold during these times.

We witnessed this firsthand during a decade-long bull market from 1970 to 1980. During that period, the price of gold multiplied more than 24 times, and the price of one ounce of gold went from $35 per ounce to $850 per ounce by late January 1980.  

Even more impressive, silver outperformed gold. During that same time period, silver increased from $1.29 per ounce to $50 per ounce.

During the precious metals bull market from 2008 to 2011, we saw the price of gold increase 166%. During that bull market, the price of silver increased 448%. 

In some ways, silver outperforming gold in a bull market is tied to the same reason that silver is a hedge from inflation. Bull markets are often accompanied by consumer confidence, which is generally tied to an increase in consumer spending. 

When people feel good about their money and their ability to make and save more money, they tend to be more willing to spend that money. When they spend that money, especially in today’s technology-filled world, they spend it on products that contain silver – such as cell phones, televisions, and computers. 

Silver Is A Tangible Asset

When you invest in physical silver coins or bars, you get something real—something you can touch and see. 

Traditional financial instruments are paper products. Numbers on a screen. Digital promissory notes, if you will. They are, therefore, often at risk of depreciation from money printing and policy changes.  

An ounce of silver will fluctuate in value, just as commodities like gas and oil will, but physical silver has never completely crashed and gone to zero. That’s because it stores inherent, real value. That ounce of silver today will be that same ounce of silver tomorrow, and there’s a finite amount of it in the world. It cannot be printed at the touch of a button. 

The only way to invest in physical silver is to buy silver coins, buy silver bars, buy silver online or buy silver jewelry. That’s about it. 

Demand For Silver Is Growing

Simply put, today’s high-tech world depends on silver to make it go. As a result, silver has never been more in demand than it is now. 

Smartphones, laptops, robotics, televisions, and LED lights are just some of the things that depend on silver. And solar panels, the cornerstone of the new green world, cannot currently function without silver. Between now and the year 2030, the world is planning on using, and needs, just for solar, 50 million more ounces of silver than were mined in the entire world in 2019. 

Huge increases in demand for a product lead to a strain on the supply of a product. Products in high demand that are low in supply typically experience explosive price growth because consumers are willing to pay more for something that they need but cannot readily obtain. 

Invest In Your Future, And Buy Silver Today

We have just covered some of the reasons why you should buy silver: 

• It’s cheap
• It’s a hedge
• It’s outperformed gold in bull markets
• It’s tangible
• It’s in high demand

If you want to help protect your assets today—and maybe make them future-proof for tomorrow—then contact us at Advantage Gold today, and we will advise you on how to buy silver, and show you how easy it is to get started.