Four Reasons to Buy Physical Silver

In this article we’ll go over four simple reasons as to why you should be interested in buying physical silver:

During volatile times, precious metals provide stability.

  1. They help you to protect what you have.
  2. Silver Is More Accessible Than Gold
  3. Precious metals maintain their worth and help you safeguard your financial future.

The stock market’s dramatic highs and lows frequently drive investors to safe-haven assets like bullion. The Precious Metals market has historically had an inverse association with the stock market, which means that when equities rise, bullion falls, and vice versa.

Even when the stock market has fallen, this inverse relationship persists. Though gold and silver prices do not always rise in tandem with stock market drops, bullion has historically served as a hedge during market downturns. Bullion provides a hedge against economic uncertainty, allowing you to be prepared for such disasters.

Protect What You have

One of the most important advantages of bullion is that it can secure your assets. Economic, monetary, or geopolitical catastrophes can devastate your investment portfolio. Bullion allows you to use your Gold and Silver assets as a defensive measure against uncertainty as well as an offensive profit opportunity when other investments decline.

Stocks and crypto are by nature, very volatile. Bullion on the other hand is often thought of as a defensive strategy due to historical staying power. However, Gold and Silver can also be used as offensive techniques for accumulating wealth as well. Gold and silver have a lot of potential for profit as a long-term investment.

Bullion benefits when the global economy is in turmoil and the market is in crisis. When this happens, any volatile, risk-on asset falls fast, putting our economic, fiscal, and monetary institutions at danger. When fear grips the market, investors turn to Gold and Silver as safe havens. The greater the fear, the greater the demand for safe-haven assets, and thus, the higher the price of Gold and Silver. From this point of view, Gold and Silver can offer low risk, as an investment and high rewards.

Silver Is More Accessible Than Gold

Gold and Silver have withstood the test of time, something that crypto, although promising, still has to do. During inflationary periods, these precious metals have remained stable or even have increased in price. Silver, like gold, has a long history of longstanding. For almost 6000 years, silver has been regarded as a valuable commodity. It was first employed as a form of currency about 700 B.C., and it has since played a role as a trading metal in almost every ancient and modern society. Many people take solace in the fact that gold and silver have been valued for a long time throughout human history.

Fast forward to modern times, Silver is in a unique position to have a greater percentage increase in the coming years, more than gold. It is no secret that the price of silver has been manipulated for years. This artificially low price is precisely why it is set to rise to its true value soon, especially with inflation concerns and the growing silver short squeeze movement. Silver’s price is approximately 1/60th of the price of gold, making it easier and more accessible to invest in. These factors together make it a more appealing long-term investment than gold.

Less Supply, Increasing Demand

Basic examples of supply and demand can help investors understand the utility of precious metals. Specifically, silver’s availability and demand have fluctuated greatly over the years due to advances in medical research, technology, and aesthetic preferences. Because silver is a critical component of commonly made electronics, such as computers, mobile phones, and solar panels, demand for silver is stronger than ever.

In 2020, global silver production declined for the sixth year in a row. Declining grades at some important Silver mines, as well as disruption-related losses at certain large Silver producers, contributed to the dip in supply. However, despite the limited supply, Silver’s demand is expected to continue to rise, similar to the demand for gold.

The Silver Institute predicts that worldwide demand for silver will reach 1.025 billion ounces in 2021, the highest level in eight years. Silver has a wide range of applications, including photovoltaics, the conversion of solar energy into direct current energy, jewelry making, medicinal applications, and minting silver investment items, such as bars and rounds. These vast, popular, and necessary uses of silver, as well as its falling supply, only set it up to have a significant increase in price in the near future.

Hopefully, this article has helped you see a clear picture as to why you should be paying attention to an asset class as old as silver. At Silver Stonks, we are combining the new era of crypto with the traditional silver market. Token holders will be able to purchase Silver Stonks’ silver products with our token. In doing so, we hope to educate a broader range of investors (especially younger investors) of the benefits of protecting themselves against inflation.

A token on Binance Smart Chain created to help people diversify into digital and hard assets. Check out our whitepaper for more details at www.silverstonks.io.