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Investing in Silver
Silver is a shining investment opportunity. There is a good chance that silver will hold its value against major currencies, making it one of the most affordable, best forms of insurance against inflation. Long-term silver investments can mean higher returns greater liquidity ─ and the potential to protect your wealth for future generations.
Why Investing in Silver is a Good Idea
Precious metals IRA accounts are personal savings accounts that can be used to minimize tax on future income. Investors in IRAs, Roth IRAs and 401(k) plans may be eligible to contribute after-tax money to a retirement account, and the money will compound and grow tax-free. The earnings from these accounts are also not taxed until withdrawn.
When you buy silver for the IRA, you can use its funds to make purchases in precious metals like gold, platinum, and palladium which leaves a room for long term investments to be fun, interesting and upgradable.
There are three main benefits of investing in precious metals like silver in IRAs:
The first is that precious metals provide protection against inflation. Precious metals like gold and silver have been traditionally used to store wealth, and their value tends to increase during inflationary periods.
The second benefit of investing retirement funds in precious metals like gold and silver is that precious metals are an inflation hedge. Precious metals in particular tend to be more valuable over long periods of time, making them less vulnerable to inflation, currency devaluation, and bankruptcy.
The third benefit of gold and silver IRAs is that gold and silver provide protection from natural disasters. In 2008, for example, insurers paid out $1.9 billion as a result of the 2007-2008 financial crisis. A couple years earlier, the insurance companies paid out $2 billion as a result of Hurricane Katrina. Investing in precious metals like gold and silver protects against natural disasters by holding their value over long periods of time.
To conclude, investing in your future wealth with a Silver IRA is an excellent way to ensure that tomorrow will be better than today. Since the time of the ancient Greeks, silver has been considered a symbol of wealth.
Become a part of the history of precious metals safe haven and start investing by requesting a FREE PRECIOUS METALS IRA GUIDEBOOK delivered to your front door.
Silver: an Excellent Tool to hedge and diversify your Portfolio.
If you invest for the long term, silver is an excellent hedge against inflation. The reason is simple: silver prices tend to rise when inflation rises. If you haven't been paying attention, inflation has been running about 5% a year for the past several years, so the price of silver is about 4.5% higher than it was a year ago.
If you expect inflation to stay near 5%, silver is a good investment. If you expect inflation to go higher, it is an even better investment.
Silver is also an excellent portfolio diversification tool. Gold is an asset that tends to move in the same direction as stocks and bonds. Silver, on the other hand, tends to move in the opposite direction.
In 2013, when the stock market was in a panic and bonds were selling for 1%, silver was selling for about 6% less than gold. In 2015, when the stock market was doing well and bonds were selling at 2%, silver was selling for about 2% more than gold. This tells you one thing: that this is the right moment to invest in silver.
Because of the way its price moves, silver is also a good investment as a short-term investment. For the longer term: Silver is a commodity and will rise and fall with changes in industrial demand and production. Because it is used in industrial and medical applications, demand for silver is likely to increase as industrialization increases in countries such as China and India.
This Gold & Silver Investor Guide will help you discover much more about the benefits gold can have for your investment portfolio today!
The Supply and Scarcity of Silver
Silver is a valuable metal because it is so scarce. (Some people, of course, argue that gold is just as scarce. But gold isn't used for the same things as silver). Nowadays, the supply of silver is not growing fast enough to keep up with the growth of demand.
The supply of silver comes from two sources: mining and scrap.
Silver mines generally produce most of their silver in the first few years of operation. After that the mine's operation becomes easier, and the silver production declines. The supply of silver from mines depends on the size of the global silver market, which depends on the amount of silver used.
Scrap silver, on the other hand, comes from used plates, pots and pans, and coins. Because of this, it has a steady supply.
Because the world's supply of silver comes from these two sources, the supply of silver tends to expand and contract according to the amount of silver used.
The demand for silver is closely tied to the price of silver.
When the price of gold goes up, for example, people buy more gold. When the price of silver goes up, they switch to silver. Historically, the world's demand for silver has risen and fallen with the price of silver, which has always had an inverse relationship to the price of gold.