This tough time of pandemic has made investors look for premier investment options looking for commodities instead of stocks. It is strongly believed that gold is the most convincing metal to buy these days, due to which most people underestimate the power of silver. However, the silver price has increased at a pretty higher when compared with other commodities.
Many people are still hesitant about whether to invest in this commodity or not. If you are one of them and looking to know the answers, we suggest checking this complete post. Here, we will give you the top reasons for investing your money in silver for getting exceptional results. Look at the full article for getting answers to all your queries!
Table of Contents
1. Misappropriate Gap between Gold & Silver
As of May 2021, gold is over US$ 1,850 per ounce, and silver is traded at US$ 30 per ounce. It means the gold price is almost 60 times more than silver if we talk about the present market. Most people will believe that is gold is more valuable than silver, but it isn’t a reality that most people fails to understand.
There is a need for very hard effort to mining precious metals like gold and silver compared with other commodities. However, there is misappropriating relationship between the prices of both these metals that everyone needs to acknowledge.
We want to acknowledge that the price of gold will definitely increase for at least medium terms if the economic uncertainties continue to stay globally. However, it is said even by few top experts that the silver rate will grow at an exponential rate shortly and reduces the difference with gold. It simply means that you can get better returns on silver when compared to gold in the near future.
2. Growing Demand for Silver
The next reason that will make silver a terrific investment is that it has more applications than most commodities. It has a huge demand in the industry that will increase silver price in the foreseeable future. Silver is an electronic & reflective commodity used in various industrial applications for those who don’t know.
If we talk about the past few decades, there are more patents granted for silver when compared with 18 Karat gold price. You will be amazed to know that more than 1 billion ounces of silver are used in the consumer market by various industries in the past decade.
If this news doesn’t excite you, we want to tell you that investors predict that the demand for silver will increase in industrial applications for the next few years. Therefore, it perfectly makes sense that silver price will increase thanks to the growing demands in the industrial market. It is a natural commodity whose mining will increase to boost up the silver rate for sure.
3. Affordable Pricing
Despite having tons of similarities, there is a huge difference between the price of gold and silver. However, things are different from the investment perspective, where someone has to spend much lower money for buying the same amount of quantity. There are few who must be saying that gold can result in greater returns, but they forget to do the math.
For e.g. someone has bought one ounce of gold at US$ 3,000 while others have bought the same amount of silver at US$ 30. Both of them usually provided returns at the same level every year these days. In fact, silver is seen as a better option in terms of growth by many. It means investors have to utilize extremely little money for enjoying the same level of profit.
On top of that, every investor doesn’t have thousands of dollars to invest in the commodity market. The silver turns out to be a blessing for such people who try to make money from limited resources. Most people underestimate the power of silver that usually got overshadowed in front of gold and oil price. In simple words, silver is the perfect option to invest if someone has limited resources in their hand.
4. Banks not Buying it
An interesting reason that needs to be considered is that central banks invest in gold, but they don’t care to buy silver at all. As per the recent report, the central banks have been involved in 0% selling of gold for the past five years. It means the banks are working to increase their gold portfolio, but silver isn’t in their future plans.
There were times when the central banks sell their assets like gold and silver to boost their currency value. However, they are mainly doing this work using bonds and gold these days. We want to tell the readers that central banks can control gold prices, but they can’t do the same with silver. It means silver has lower chances of falling when compared to gold for sure.
That’s not all, the stocks for silver will also increase if central banks thought about repurchasing it considering greater returns. It means silver has all the tools to outperform gold in the upcoming months or years to come. This undervalued commodity has started catching the eyes of investors due to this reason.
Summary
What do you think about the detailed reasons that we have written in this post? The main motive of this detailed information is to ensure that readers understand the potential of silver and begin investing in it. There is not even a single reason for not including silver in your portfolio. The majority of investors are extremely positive about the silver purchase.
It is a very affordable commodity having the ability to give exceptional returns soon. The gold price is expected to reach new heights by the end of 2021 that simply means that the buyers can enjoy solid returns on their investment. If you want us to answer any query regarding silver or any other commodity, feel free to write in the comment section. We are excited to hear any news or suggestions regarding these precious metals
