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    The Pros and Cons of Investing in Silver

    By sbanderas | March 30 2021
    Categories: Blog
    220

    Silver might not be like our normal currency, but it is money. Some people consider it together with gold as the ultimate form of money; since unlike today’s digital currency, it can’t be created out of anything. Owning or investing in silver is saving yourself from unnecessary heartbreak when money depreciates. You can see your money when you want and not be bothered the market would crash.

    However, just like any investment out there, investing in silver has its share of ups and downs. In some instances, it is a profitable investment plan which can also lead to losses at times. Even though it can get very volatile, it’s another way to keep your money away and not have to lose it against inflation. Silver is there to preserve wealth in the long-term. 

    Pros Of Investing In Silver:

    1. There Is No Risk of It Being Hacked

    Hackers can’t have access to your wealth when you invest in silver. It’s not a digital asset as such doesn’t have any connection with the internet or bank accounts. Hackers can only access your assets that are secured on the grid. 

    2. Can Be Private and Confidential

    Another benefit for potential investors seeking to buy silver bullion is that their transactions are kept private and not exposed to the public. Not everyone loves to be seen out there. 

    Nothing is truly hidden, especially from the government, but investing in silver offers you the opportunity to keep your assets in secret. Whether it’s the 2021 Silver Eagle coin, Roaring Lion Silver coin, or US silver coins, investments can be discrete and safe. There would never be a time where silver won’t be needed which means you can have private investments and be certain you’re not running at any risk.

    3. It Is Cheaper Than Gold

    Despite being cheaper than gold, silver provides you with a higher percentage gain when the price rises. It is not only less expensive, but it is also more accessible and there are different ways to spend it. That means if you are looking to buy a silver coin to use as currency, it will be easier to break than a gold coin because it is lower in value.

    4. Diversification

    Diversification is usually in the context of the stock market. There are times you’d see an occurrence to the effect that you have to buy stocks with larger and smaller companies making you get into positions with different industries. Assets like silver tend to have low correlations compared with other forms of investments. What this means is that whenever your 401k stocks are declining, there’s every possibility the value of your silver might increase.

    5. It Offers Protection

    During periods of economic and political uncertainties, silver provides protection as legal tenders become inferior to such an asset. Also, unlike other forms of financial products that are usually prone to depreciation, silver is a tangible asset that isn’t likely to crash.

    Silver offers investors anonymity as indicated above, protecting them from eyes that pry on their spending.

    Cons Of Investing In Silver:

    1. Liquidity

    If you need instant quick cash, silver may not be an option for you since it comes in the form of bars, coins, or ounces. You could easily meet a jeweler to exchange it for money but the process might take time and not give you physical cash when you need it. There are other options to convert to cash but they’d not meet your need for money as quickly as you’d imagine. This is a drawback to consider when planning on investing in silver.

    2. Risk of Being Stolen

    Hackers might not have access to your investment but armed robbers or thieves sure can. There is no investment without risks. It is necessary to consider the risks associated with the investment you’re interested in before investing.

    3. Depreciation 

    The price of the silver coin might go down after you purchase it. This is the reality of investments. There is no stated assurance that the value would always be on the rise. It’s important to acknowledge when investing.

    4. It Can Be Stressful

    Buying silver metals can be really stressful to hold considering its weight. If you have close to 100 ozs of silver, you can’t leave it lying around; you need to keep it someplace safe. 

    Keeping it safe also incurs more cost as you’d need a safe or safety deposit box. A safe is really expensive considering the value of what needs to be kept; using a safety deposit box would also cost you some unhealthy fees annually depending on their credibility. 

    Whether you’re buying or holding the silver, both processes can be stressful.

    Timing is key for those who want to earn profit. After getting knowledge about all these pros and cons of silver investment, the investor can take decisions according to their view to decide whether they want to build up stocks of silver or not.