In the year 2010 all that glittered was—silver! Gold performed admirably as well, setting all time record closing spot prices, but silver’s performance went above and beyond all metals. The economic strains that the world is experiencing are likely to keep investors running to gold to protect their wealth, but silver also presents many benefits that investors should consider. Investors will find that silver is not only a viable option in the modern climate, but may also be the best investment that can currently be made.
All precious metals provide many benefits to the portfolio with modern manufacturing techniques, but silver presents a greater demand. It is extensively used in the production of many modern goods, and new technologies increase the uses for this unique metal. Growing developing nations are expected to increase the burdens on demand, driving the need for the manufacturing of products that require silver.
Silver is also in tight demand. The production of these modern goods has consumed most of the silver that has ever been mined. Current production levels can’t meet the demand and stockpiles are being depleted around the world. Silver is becoming rarer everyday, as its supply disappears.
Investors will find silver that silver is more affordable. The high price of gold may prevent many investors from purchasing it. Unemployment is still high and many Americans are still reeling from the loss of retirement accounts due to the recession. Silver is a more affordable option and also provides similar wealth protecting benefits as gold.
Physically owning silver provides many benefits as well. Unlike a stock certificate which can be worthless, investors will have physical possession of an item that always has value. Also, since silver is a lower denomination precious metal, in the event of total systemic failure of the current financial systems, it will be easier to trade for everyday items. While this occurrence is probably unlikely, many different catastrophic scenarios could cause such failures, even if only for a limited time. In such an event, those who are prepared will be better equipped to handle the situation.
Overall, silver presents investors with opportunities for growth in the long run, and provides a commodity for security. It is more affordable than gold, allowing it to be purchased by those with more modest means. The future demands for silver are likely to continue and the investor who owns some will be glad to reap the rewards.