Why You Should Invest in Silver

Silver is a precious metal used primarily for investing as well as for industrial applications. Silver is different from gold in that it is notoriously volatile on the market, but since 2005, it’s value has steeply risen. In 2014, silver was at a high of $21.96 per ounce, and in the past five years, hit a top value of $48.58 per ounce in April 2011. Silver can provide a safe investment opportunity mainly due to its high industrial demand, and while prices are not as high as they were four or five years ago, the ebbs and flows of its value is largely dependent of the stock market.

The value of gold and silver are directly correlated with the Dow Jones Industrial Average. When the Dow climbs, investors put their resources into the stock market and away from precious metals, but the opposite occurs when the Dow drops.

A traditional way of investing in silver is to buy actual physical bullion bars, which are uniform in size and are easy to store. Hallmarked bars are easily recognizable and can easily be exchanged for cash.

Silver is considered a safer investment than gold because silver always yields a greater percentage increase on the precious metals bull markets. Industrial uses of silver also account for its success in the market. Silver is used in the production of electronics, automobiles, and jewelry, and new uses are still being developed.

A main reason to invest in silver is production and secondary recovery has failed to meet industrial demand since 1990. Aboveground supplies of silver have also been reported as being critically short. With industrial demand rising and the production deficit eating into aboveground supplies, many analysts have projected this will impact the price and value of silver in the next coming decade.

Silver can also be used as a hedge against inflation, especially in an unsteady and unpredictable marketplace, and the precious metal is favored during a financial crisis over gold. Investing in silver can provide a safe hedge during times of economic insecurity, and with the demand increasing, now might be the best time to add silver to your portfolio.