Today, Palos Verdes Coin Exchange addresses investing in silver as a commodity for investments. When people are interested in storing money in bullion, they most often think of gold. Over the coming weeks, we’ll explain why you should also look at silver.
Silver has been used as a form of currency and as a store of value for thousands of years. It remains an important investment tool for both sophisticated and beginning investors today. In next week’s article, we’ll take a closer look at the stability and availability of silver as an investment. We’ll also talk about the markets that purchase most of the world’s silver supply. As you’ll see, there are many ways the world uses silver in commerce and manufacturing in the 2020s.
Investing in Silver Versus Gold
It’s funny, when we talk to metal buyers here in our PV shop, many of the gold buyers we talk to seem to feel that gold is superior to silver as an investment tool. And, it can be in some ways. But let’s quickly look at a short term view – something you should never do in metals buying. It’s a common mistake people make when investing in silver. Don’t do it! Especially with gold or silver.
Before the details: listen up. Past performance is no guarantee of future results. This is not investment advice. Just information. Use it however you like.
First, gold. In February 2020, gold was hovering around $1,500/oz. At the time of this writing in February 2023, it’s just over $1,800. That’s an increase of about 20%. Not bad, but absolutely not normal. COVID was messing with the markets big time.
Now silver. In February 2020, silver was around $13/oz. And now, it’s about $22. That’s an increase of about 70%. Again, again, totally not normal. And silver was trading at $50/oz back a couple of decades ago. So if you were deep in silver you bought at the wrong time and had to sell in 2020, you were in rough shape. There were many people investing in silver as beginners who didn’t understand the true market drivers. They got beat up pretty bad.
My point is that silver bullion bears watching. Have a careful look. Talk to us at PVCE. If you’re able to get yourself into a long-term hold strategy, investing in silver at the right time and choosing freely the time of your sell, you could do really well. If you jump on the band wagon, you’re likely to get burned.
Investing in Silver, Historically
Silver is often considered a stable investment tool, with a long history of retaining its value over time. Like gold, silver is a precious metal that is resistant to corrosion and oxidation. That makes it a popular choice for both jewelers and investors who are looking for a reliable store of value.
It’s tricky to look at silver over longer terms because at times the silver market has been heavily manipulated. While there have been periods of volatility in the silver market, silver has enjoyed investment growth over many periods. Silver can be a useful tool for people who pay attention. Look at recent history: silver has had sharp price fluctuations recently resulting from the pandemic, just as in the 1980s and 2010s. But generally speaking, over the long term, silver has been a relatively stable investment option. You just have to know when to get in and when to get out. For a low-cost option (way lower cost than gold) it’s a great way to go for many people.
So, is investing in silver a good idea for beginners? We think so, so long as you’re careful and pay attention. Come back next week and we’ll explain more.
