Is Silver a Good Investment?

 

Silver: A Wise Investment Choice in Today's Market

Investing in precious metals like gold and silver can be a great way to diversify your portfolio and potentially see large returns. While gold has been a popular investment choice for many years, silver is often overlooked despite having many attractive qualities that make it a great investment option. In this blog post, we'll explore why buying silver right now is a wise choice and what that could mean for investors in the future.

Silver is a precious metal that has been overlooked and undervalued for too long. It's time for investors to take notice of its potential as a safe haven asset and its critical role in the financial system. Lets explore the reasons why silver is an investment worth considering, including its abundance and affordability, its wide range of industrial uses, and its potential for future price growth. We'll also delve into the political implications of investing in silver and why it may be the lynchpin of the entire financial system.

Relative Abundance and Affordability

One of the most appealing elements of silver is its relative abundance and affordability. Over the past decade, gold prices have skyrocketed, making it difficult for the average investor to get started in the precious metals market. Silver, on the other hand, has remained relatively low and stable in price, making it much more accessible to the average investor. This means that you don't need large amounts of capital to get started with silver, making it a great option for those just starting to invest or for those looking to diversify their portfolio without breaking the bank.

Industrial Demand

Another key factor behind the bullish case for silver is its industrial demand. Silver has a variety of valuable uses in a range of industries, from electronics and medicine to automotive parts. This means that there is always a need for silver and investors can be confident that the inherent value won't be affected by changing market trends. As technology continues to advance, the demand for silver is likely to increase, which could mean big returns for those who invest now.

The Global Source Silver institute reported late last year that global Silver demand had reached a new high. They expect the trend to continue, especially in regards to the electronics industry.

Undervalued Compared to Other Precious Metals

As discussed above, silver is much more abundant than gold, with a 1:15 ratio of silver to gold in the earth and a 1:8 ratio of silver to gold mined. Despite being more abundant, silver is also considered to be undervalued compared to other precious metals like gold, and experts believe that now may be the perfect time for investors to take advantage of the price difference before it disappears. The Gold to Silver Ratio (GSR), which measures the value of gold relative to silver, is currently at 1:84, down from a recent high of 1:100. With gold prices on the rise due to increasing global demand, many experts believe that the GSR will continue to shrink, making silver an attractive investment option. With a 1:15 ratio in abundance, but a 1:84 ratio in value, you can clearly see the case for silver to be currently undervalued. In other words, gold is only 15x more scarce than silver while being 84 times more valuable, and we expect this gap to become less wide over time.

With gold prices on the rise due to increasing global demand, experts believe that now may be the perfect time for investors to take advantage of the price difference between gold and silver before it disappears completely. This makes silver an attractive option for long-term investments, as the price has the potential to increase significantly in the future.

Diversify Your Portfolio

Investing in silver can be a great way to diversify your portfolio while also taking advantage of potential gains in the future if prices rise as predicted.  This is because silver and other precious metals have low correlation with other asset classes, meaning that their prices are not closely tied to other types of investments. This makes silver less vulnerable to market fluctuations, and helps to provide a measure of protection against downturns in other types of investments. In times of economic uncertainty or instability, the price of silver can hold up or even increase, which can help to provide some stability to your portfolio. With this low correlation to other asset classes and strong demand from industrial applications, silver is a valuable commodity that can help to provide stability to your portfolio.

Political Implications

One of the political implications of investing in silver is that you are "voting with your wallet." The value of fiat currencies, such as the US dollar, is often seen as manufactured lies, and many people believe that investing in precious metals is a way to protect their wealth from the inflationary effects of money printing. The US debt clock shows the dollars in circulation versus the amount of silver available.

The silver market is also heavily manipulated, as tech is dependent on silver, and the silver market is much smaller than the gold market. Certain big financial interests realized that they could suppress the entire commodities market, including the price of silver, by controlling the precious metals market. They learned that by suppressing the 20 billion dollar silver market with 5 trillion dollars of notional derivatives trading, they could force the price of gold down. By controlling silver, they could force gold to act in turn, which is used as an inflation signal for the broader commodities market.

However, as the silver suppression scheme unravels, bond yields will spike uncontrollably, eventually taking down the debt-based fiat currency financial system. Many years ago, the Federal Reserve realized that national debt levels and the levels of currency printing they were engaging in were unsustainable with any kind of reasonable bond yield levels the market could sustain. To keep bond yields low, they needed to trick the markets into thinking inflation is lower than the bond yields they require, as nobody would buy 2% yielding bonds if inflation was obviously 5%. By controlling silver, they could force gold to act in turn, which is used as an inflation signal for the broader commodities market, supporting the continuation of artificially low bond yields and an impossibly high level of national debt.

Conclusion

With this in mind, buying silver as an investment has the potential to be a wise choice, especially for those looking to diversify their portfolio and protect their investments from inflation. However, it's important to remember that investing in silver, like any investment, comes with risks and it's important to do your research and understand the potential rewards and challenges before making a decision.

When investing in silver, it's also important to understand the difference between physical silver and silver-based investment products, such as exchange-traded funds (ETFs) or mining stocks. Physical silver gives investors the ability to hold and store the physical metal, while silver-based investment products offer exposure to silver prices without the need for storage or physical possession.

Another important factor to consider is the current market conditions and the overall economic outlook. While silver prices have been relatively stable in recent years, fluctuations in the market can still occur and it's important to monitor the market and understand how economic factors can impact the price of silver.

Finally, it's important to understand the role of silver in the financial system and how it can serve as a hedge against inflation. As the money supply increases and the value of fiat currency decreases, precious metals like silver tend to increase in value, making them a popular investment during times of economic uncertainty. Silver is an often overlooked investment option that has many attractive qualities that make it a great choice for investors. With its relative abundance and affordability, industrial demand, and potential for growth, silver is a wise investment choice in today's market. Whether you're just starting out with investing or are looking to diversify your portfolio and protect yourself from devaluation of fiat currency, silver is a great option to consider. Don't miss out on the potential returns that silver has to offer – start trading Silver CFD's (XAG) on Fortrade Canada today!

Disclosure:

Ramy Capital is in an affiliate agreement with Fortrade for a share of revenue. I wrote this article myself, and it expresses my own opinions. CFDs are a leveraged product that is considered high risk and although the returns can be great, so can the losses. CFD trading may not be suitable for everyone and can result in losses of your entire deposit. Do your own due diligence before taking any positions. Use risk management and invest responsibly.

Additional Disclosure:

The views expressed in this article are the opinions of the author as of the date of publication and do not constitute a recommendation to buy or sell any asset. Opinions are subject to change without notice and the author is under no obligation to update their views on this blog. This is not investment advice and is being provided for informational purposes only. You should not rely solely on the information or opinions provided in our content, rather use them as starting points for your own due diligence and draw your own conclusions based on your own research. The author cannot guarantee the veracity or completeness of any information provided in this blog and will not be responsible for inadvertent errors or omissions. Please do your own due diligence and invest responsibly as you alone are responsible for your own investment decisions. Investments carry risk, are not guaranteed, and can lose value.