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Is silver a better investment?

By Edited Nov 13, 2013 0 0

In today's volatile climate, investing has become a challenge. Historically stable investment strategies are no longer viable. Gold and silver has since emerged as a new investment class with investors anxious to hedge their investments in the various fiat currencies. Most nations have been caught up in a spiral of deficit spending that is starting to come back and haunt them. With that, it is essentially crucial to have hard assets to hedge against the unthinkable possibility of fiat currencies rendered useless. Out comes gold and silver to the rescue!

 Although investing in gold and silver has not yet been mainstream, it has become the safe haven for many investors for the reason stated above, that the value of their currencies might one day be as valuable as a piece of paper. Hence, many have taken steps to ensure that their investment is one which has been able to withstand the test of time.

The question is then which is a better investment? Silver or Gold? Investing in silver has historically provides a greater outperformance in a commodity bull market. But the reverse can also be said in a down market. The primary reason for investing in silver instead of gold besides the fact that it has an added leverage effect is that silver is the"poor man's gold". Investing in silver is relatively cheaper than buying gold and this appeals to the masses. On an aggregate level, the amount spend on silver might be more than that of gold.

So in what form of silver do we invest in? The most common will be investment in silver coins, which can be an exciting and profitable adventure. These coins make for a valuable and unique investment but they too are fraught with risk, especially to the amateur.

Understanding and weighing the risks of different types of companies marketing silver coins is creucial. Dealers of such coins are not beng regulated and licensing requirements are not necessary. Prices are not standardized which means that it is very common for the amateur investor to overpay for such assets.

When buying these silver coins, always insist on undamaged coins. Exchange policy and guarantees are a must. Do contact the dealer to ascertain how the exchange policy works and if there are any special exceptions that you should be aware of.

Overall, it is "buyer's beware" all the way and investing in silver coins, though has substantial returns, is also fraught with risk. Never buy coinds from a dealer that doesn't have a strong and long reputation.

 

 

 

 


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