December 21, 2017, 5:23 pm

Silver Is The New Gold When It Comes To Investing in Precious Metals

by: The Financial Blogger    Category: Investing Ideas
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Silver is definitely the new gold when it comes to investing in precious metals. For much of human history, silver and gold have alternated as the currencies of choice. Gold has always been the more expensive older brother to silver while silver has been the precious metal of the common man. Silver is uniquely positioned to increase its value in the future at higher rates than gold.

Gold Isn’t the Safe Haven Anymore

Gold has traditionally been the safe haven currency. When times are bad, people would invest in gold to protect themselves from uncertainty. Like clockwork, gold prices would go up in times of crisis and go back down when things would return to normal. People knew that gold would keep its value. In fact, a common claim is that 1 ounce of gold will buy a decent men’s suit and has at any time in the last 200 years.
Things are changing. Gold is no longer the only safe haven currency. In many ways, this status is being supplanted by Bitcoin. China, a traditional devourer of gold, has embraced Bitcoin. The people have embraced it for all of what it offers and more. The additional benefits of anonymity and the ability to easily transfer it has made it quite popular. The Chinese government is not altogether happy about the rise of Bitcoin, but it is what it is.
It’s really difficult to foresee what will happen in the next economic crisis. We do know that more people will seek out car title loans completely online. We do know that more people will apply for public assistance. We do know that gold and silver will hold their value, but it’s not clear if gold will increase its value in response to the crisis.

Silver Is More Accessible

While gold is having its status as a safe haven supplanted, silver is also replacing it as a better precious metal investment vehicle. Gold is trading at very high prices. These prices have been stagnant for several years at a relatively high level. These high and stagnant prices mean that gold is not very accessible.

Silver is just more price accessible. People can make a small investment in silver at its current price level and still see a good return on their investment. On the other hand, that same small investment in gold would yield them a few grams of gold that is bought at a premium and sold at an inferior price. This results in a much lower potential return.

Silver Has Upside

Price accessibility shouldn’t be the only reason to make an investment. It just makes it easier. The real reason to invest in silver is that it has upside. There are three major factors behind this upside.

  1. It’s an industrial metal. It’s widely used in industry for a myriad of different processes and products. This creates a steady demand for the metal and a pricing support level. As supply decreases, the prices will rise due to its industrial demand.
  2. Silver is a jewelry metal. It has very nice aesthetic qualities. It’s beautiful and can be fashioned into a variety of jewelry.
  3. It’s a traditional currency. It’s been used as a coin for centuries all over the world. It has recognized value. Its coins have stood the test of time. People understand that silver represents money and there is a continual demand for silver coins.

It’s clear that silver should be the go-to precious metal for anyone looking to invest in precious metals going forward. Silver has the upside and the price accessibility to make it a champion.

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