Is silver a good investment? Here’s what the experts say

With interest rates high, several bank failures and a possible recession on the horizon, it’s a good time to reevaluate your investments.

One option that many consumers are exploring in these challenging times is precious metals – more specifically, gold and silver.

Gold and silver investment Often considered good hedges against inflation and can help you diversify against riskier investments like stocks and bonds, which have seen volatility in recent months.

But when is silver the right move, and when should you Invest in gold Instead? Here’s what you need to know.

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When is it smart to invest in silver?

Silver is one of the many precious metals that you can invest in Investing in silver may be wise when:

You’re looking for long-term growth

Silver is not just a metal to collect and put away for the future. It has endless real-life uses, and with those uses — and future, as-yet-undiscovered ones — comes the potential for growth.

“Silver is not only a precious metal but also an industrial metal,” said Shankar Sharma, CEO of Risk Reward Return. “Silver is used in medical applications, solar panels, batteries, nuclear reactors, semiconductors, touch screens and more.”

It is a major component of electric vehicles, which have increased in production and popularity in recent years. By 2025, the Silver Institute estimates that 90 million ounces Silver will be required for the production of vehicles.

“It is wise to invest if investors have the patience to hold for the long term,” says Sharma “With increasing commitment to green infrastructure, clean alternative energy sources and the expected growth of EVs, demand for silver should only increase from here.”

You are comfortable with some risk and volatility

Silver is generally seen as a safe investment, but its value ebbs and flows more than gold.

In the past year, silver price As has gone down From $17 an ounce to about $26 an ounce. Over the past decade, silver has gotten even more vacuumed. Its lowest price was just under $14 per ounce, while its highest price was around $28 per ounce. That’s a top-to-bottom difference of 101%.

Still, the volatility can be worth it—at least for investors with patience and good timing.

“Annual silver production is currently worth about $20 billion,” said Ian Everard, owner of ARK Silver Gold Osmium. “When you do the math, even the slightest influx in the gold and silver market will cause an exponential increase in value.”

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You want to diversify your portfolio

Silver is also a smart way Your portfolio is diversified And offset your exposure to other risky assets, such as stocks.

“It can be smart to invest in silver when you’re trying to diversify or when you expect inflation or economic volatility,” said Nick Ganesh, manager at Endeavor Metals. “Silver often holds good value under these conditions.”

When investing in silver is unwise

Silver can often be a smart investment, but it’s not right for everyone. You don’t want to invest in silver if:

You want a risk-free investment

The biggest disadvantage of investing in silver is its volatility. While this can often mean big gains, it can also mean significant losses if you sell at the wrong time.

If you are not ready to ride out this wave of volatility, you may want to explore other investment options. As Sharma puts it, “Silver is ideal for a long-term investor who is not afraid of volatility.”

You are looking for quick returns or dividends

If quick profits or regular income streams are what you’re looking for, silver won’t help much.

“Silver does not pay interest or dividends,” says Ganesh. “So if you’re looking for a steady income stream, other investments may be more suitable. Assets like stocks or bonds may offer better returns.”

You need easy liquidity

Silver is not completely liquid, but it is not the best choice if you are able to sell assets quickly and convert them into cash. In this situation, Gold can be a good option. As Ganesh explains, “Gold is extremely liquid. It can be bought or sold easily.”

How to invest in silver

There are many here Ways to invest in silver. You can buy silver coins and bullion (just remember you need somewhere to store it), or you can invest in silver futures, which allow you to bet on or against the future price of silver. Other options include buying stock in silver mining companies or investing in silver ETFs.

You can also open a silver IRA, which allows you to use silver to build your wealth for retirement. These are specialized retirement accounts that must be managed by an IRS-approved custodian. You can only purchase Certain coins and baubles, and they must be deposited in an official depository (There is also Gold IRA If you are interested in investing in gold).

When to consider investing in gold or other precious metals instead

As Ganesha notes, Gold is your best bet If you are looking for a very liquid asset. It’s also smart if you’re risk averse, as it tends to be less volatile than silver over the long term.

“If you are looking for a relatively stable investment, gold may be your choice,” says Ganesh. “Also, gold is often considered a safe haven, making it a popular choice during times of economic uncertainty.”

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