Investing in precious metals is a big commitment. The notion of taking a portion of your cash savings buying a physical asset goes against the mainstream narrative.
The Federal Reserve has announced that the FedNow service is NOT a CBDC. Most “conspiracy theorists” are suggesting that the Fed may not be telling the truth. Luckily, a few states like Florida and Texas have efforts to reject any fed issued digital token.
More people want precious metals as a store of value in lieu of cash and deciding which is the best metal to buy can be a laborious choice. Ideally, having a balanced portfolio that is diverse with a portion in both gold and silver, alongside traditional investments, can provide extra assurance to cover many unexpected financial scenarios.
Silver is Cheaper Per Ounce
The most obvious reason many investors prefer to buy silver is the enormous price gap per ounce. The average per ounce premium is often higher on silver as a percentage of the price.
However, just like with the stock markets, the commodities markets also have bull and bear periods where the returns on silver can shine or tarnish.
For example, at the start of the pandemic in 2020, the price per ounce of silver hit a low of $11.77 per ounce. In three years, silver is already trading up more than 100%.
Gold prices have been trading at record highs in recent weeks. Rumors have been circulating for weeks about an upcoming announcement from the BRICS summit in South Africa related to a new gold-backed reserve currency.
Easier to Liquidate
This has some analysts continuing to suggest that gold prices will continue to climb higher as central banks in many emerging economies continue adding gold to their reserves.
A portfolio containing many smaller silver coins, such as Britannias or 1 ounce silver bars is naturally more convenient to sell than larger bars or a full ounce of gold.
Silver stacking is far more popular than most people realize. Many find it to be a convenient and effective way to set aside a little bit of cash each week or month.
As a physical asset, it’s a little more difficult to spend than cash and easy to keep stashed at home is available in a variety of formats that span from naturally fractional junk silver to larger kilogram and 100 ounce silver bars.
There are many options, both locally and online that make selling silver easy when the time comes. Whether it’s for an unexpected emergency repair or to raise some cash for a new venture.
While selling a portion of silver coins is a straightforward process, it’s not as easy or practical to cut a gold bar in half.
Growing Industrial Consumption
Silver is consumed by various industries in considerably greater quantities than other precious metals. Although undeniably an excellent store of value, silver is also one of the best conductors of electricity and is used everything from iPhones and other consumer devices to solar panels and EV batteries. According to statistics released since was used in smartphone manufacturing.
The largest growth in consumption industrial consumption continues to be driven by globalist climate change and green energy initiatives. Global statistics on solar panel manufacturing shows consistent year over year growth likely to continue based on the 2030 narratives.
Renewable energies represents an area where many see potential for continued increases in consumption. Compared to other metals, silver is relatively scarce in nature. There are very few naturally occurring silver ore deposits.
Most raw silver is mined as a by-product of other metals such as lead, copper and gold, which makes the mining of these other metals relatively more important.
Medical Applications
Silver plays a huge role in medical technology and with natural antibiotic properties. The invention of x-rays, MRI and other medical imaging technologies would not have been possible without silver.
Silver bromide is a chemical compound that is sensitive to light and plays a key role in X-Ray and photographic films.
Silver plays many hidden crucial roles in countless ways throughout our everyday lives. Around half of all silver mined annually is consumed during the production of over 3000 various technologies including integrated circuits, medical radiology equipment, water purification, photographic imaging and even explosives.
Silver is Undervalued
The gold-silver ratio is a great way of keeping track of silver’s fluctuations and its current value relative to gold. It demonstrates the relationship between their respective values and can be a way investors spot potential opportunities.
Over the long-term, the price of silver has steadily increased relative to the dollar due mainly to inflation.
Recent CPI data indicates that inflation continues to rise at a steady rate while the data used by the Fed in decision making lags behind the reality that consumers face each day.
Most countries fill their reserve vaults with gold, there are a few countries holding significant silver stockpiles such as Peru, Mexico and China.