Silver as an Investment


If you are considering buying silver as an investment, you are certainly not alone. For several years the economy has been shaky, and the current banking crisis is making people nervous. The stock market is always a bit of a roller coaster ride, uncomfortable for people who dislike uncertainty and risk. Like any other investment option, silver has advantages, but there are a number of things you should know before you buy. We will cover all of these in this blog. 

Reasons to Buy Silver as an Investment

First, why exactly is silver intrinsically valuable? Silver has a number of practical uses besides tableware or jewelry. Because silver is reflective and conducts both heat and electricity, it’s used to make electronics, solar panels, and medical equipment – all of which are in high demand and will continue to be for the foreseeable future. This means the price of silver is also likely to remain stable or increase over time. 

Many people invest in coins and bullion because they consider precious metals to be a safe haven. In uncertain times, anything “safe” looks very attractive. Ultimately, no investment is completely safe as long as demand can decrease, but it’s always good to diversify your investment portfolio so that if one investment does poorly, the others can offset this. This reduces your overall risk. 

Silver is also used as a hedge against inflation because precious metals tend to retain their value and fluctuate less than fiat currency does. We are living in a time of historic inflation, so anything that holds its value seems like a better investment. 

Additionally, silver is affordable and available. Far more silver is available for purchase every year than gold. It’s much more affordable to buy in quantity than gold or platinum. This means it’s accessible to just about any investor, and it’s easy to acquire. 

Silver will always be attractive as a tangible asset. It’s simple enough to purchase silver coins or bullion from a coin dealer like Grand Rapids Coins and store it. Your money then exists outside of the financial system and cannot be tracked or hacked like cryptocurrency can. 

As a material silver is beautiful and timeless. Silver coins have been used to mint coins for thousands of years, and every one of those coins is a piece of history. Conversely, silver seems to be having a bit of a resurgence at the moment aesthetically, compared to gold. 

Downsides of Investing in Silver

Perhaps the biggest problem with investing in silver, as opposed to other precious metals, is its volatility. The price of silver rises more and falls more from day to day. This also means that it performs better in bull markets. In the longer term you can make more money on silver than on gold if you time the market right. If you plan to buy and hold silver or you are committed to watching the markets and acting when the silver market looks to be peaking, silver may be a great opportunity.

There are also storage considerations. Silver is more affordable than gold, so you have to buy more of it in order to have the same investment value. Plan on purchasing a safe or rent safety deposit boxes to store your silver. You should also consider insuring your bullion or coins as well. Anything tangible can be stolen.

Should You Buy Silver as an Investment? 

At Grand Rapids Coins, we advise our customers to acquire high quality collector coins in addition to a diversified portfolio of other investments. Like any other investment, investing in silver comes with risks and potential downsides, so do your research and consider your investment goals and risk tolerance before making any decisions. It’s important to buy silver only through a reputable dealer. There are many unscrupulous people out there who happily take advantage of novice investors or coin collectors. Ignore televisions advertisements and find a coin dealer with good reviews instead. 

At Grand Rapids coins we will be happy to discuss coins and precious metals investments with you and take the time to make sure you find what you are looking for. We ship to customers nationwide, but locally you can visit our Rockford location if you would prefer to avoid shipping through the mail. Call us at 616-884-5048 to make an appointment to talk with us in person today. 

Dan Soldaat

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