You must have heard many people invest their money on Gold, which is a precious material, however silver is also not less attractive as an investment. Nowadays the monetary policy of the Government often changes and as a result the purchasing power of the currencies that we hold is going down day by day. Therefore, you need to know few things about silver as an investment instruments.
Silver is usually available in two different forms when they are traded. They are:
- Silver coins
- Silver bars
There are few drawbacks about silver bars due to which people generally prefer to trade with silver coins. Following are few drawbacks about silver bars
- As a bar, silver does not get enough respect that it should deserve
- In order to convert the bar into cash, you have to sell the whole bar. You cannot trade with ½ bar or ¾ bar.
On the other hand, silver coins can be much easily sold and also you can sell as many coins as you want to sell. I can visit any coin shop near me and obtain cash against it. This is the reason why people prefer to deal with silver coins than bars.
Let us discuss why silver is also attractive for trading. Silver as you will agree has plenty of industrial application as compared to gold. Almost in all products like mobile phones, laptops, solar power generation everywhere there is an application of silver. Hence, demand for silver will never diminish. Therefore, when silver supply is inadequate then anyone who has stock of silver available with him will be in very good advantageous position.
Another reason why silver can be an attractive investment option is that the silver price varies with season. You can always anticipate the right time to buy silver, which is usually between September to November.
Let us see few advantages of investing in silver.
- Silver prices are much lower than Gold and therefore if anyone is interested to invest in silver market then he can do it easily
- Silver is still not so popular as an investment instrument like gold, therefore it will not be difficult to buy silver any time
- Silver has more demand in industries as compared to gold
- There are very few silver mines as compared to gold. Therefore. silver demand can be more than its supply that can raise the silver price high
- Silver can be much easily liquidated as compared to gold as the prices are lower
However, silver price is little more volatile than gold and if the economy crashes then silver may suffer.