When investors want a secure haven for their money they frequently turn to gold but silver is quickly becoming a first choice for many. It is much more affordable with a ratio of approximately eighty to one compared to gold meaning you can buy eighty ounces of silver to one of gold. With such an excellent purchase price it is within much easier reach for less affluent investors. But why would it be a good investment this year?
Stock Exchange Value
For approximately the last five years, the value of silver on the stock exchange has become fairly static compared to gold which has continued to increase. Consequently any investor purchasing it now is receiving a commodity at a price from five years ago which in itself could be considered a bargain. Many investors view this relatively cheap price as being drastically undervalued considering silver’s worth as a commodity and a useful raw material. Yet conversely, silver production has declined in recent years.
How Silver Is Used
Silver like gold, has always been popular in the manufacture of jewellery. However, recent advancements in many different industries has seen silver becoming a vital component in medical, dental, technological, electronics and communications industries. In particular, it is also an essential part of producing solar energy power which due to environmental issues is predicted to become the burgeoning industry of the very near future. Demand for silver is predicted to increase sharply.
A Wise Choice
With silver prices remaining stable at undervalued prices and the increased demand in industries such as solar power presumably due to push its value upwards, investments made now will probably see a return sooner rather than later. As a valuable mineral with a long history of worth in a variety of forms, silver is unlikely to ever become a worthless commodity. In a similar fashion to gold, silver can be seen as a safe investment against future inflation.
How to Purchase Silver
Buying silver bullion is usually in the form of coins or ingots. Coins are of a specific interest concentrating on different batches of freshly minted coins or old valuable coins. To choose wisely, some guidance would be needed for a novice investor. Ingots are a straightforward purchase of a chunk of silver where weight is all important. For assistance in deciding which type of silver investment would suit you best, contact Indigo Precious Metals, experts at trading in silver.
