Is Silver A Great Investment In 2021?

Is Silver A Great Investment In 2021?

The 2020 pandemic triggered massive stockpiling by investors across the world. This pushed the prices of precious metals like gold, palladium, and platinum to new highs as they tried to protect their wealth through commodities. The price of gold increased by more than 20%, whereas platinum prices rose by 10%. What caught the eyes of most investors was silver, whose prices increased by a staggering 47%! Predictions show that these metals are set to gain even more value in 2021. 

Does that mean an investment in silver can still yield great returns in 2021? Projections show indeed, silver is still a decent investment. The recovery of major economies in the world is expected to improve the prices of silver. Moreover, as Reuters reports, US President Joe Biden’s push for cleaner energy is likely to drive more usage of silver, which will increase demand and prices of the metal. 

Why You Should Invest In Silver

Here are more reasons why you should add silver to your portfolio in 2021:

1. It Is Versatile

Silver is a highly versatile metal used in different sectors, including medical, photography, photovoltaic applications, and art. Others collect and invest in the metal through valuable coins. Silverware is also popular among many people of different classes.

This means that there is a huge demand for metal at the industrial level and personal use.

2. Silver Is Inexpensive

Silver is more affordable than gold, platinum, and palladium. It is an inexpensive commodity investment even for people with a limited budget.

There are also many ways of investing in silver. Besides buying and holding the actual commodity, you can also invest in silver ETFs or silver mining stocks.

3. It’s Great For Diversifying Your Portfolio

Wise investors diversify their portfolios to minimize losses. Silver is one of the possible ways of expanding your investments. It may not offer quick returns like some stocks, but it provides decent protection, especially when the stock markets are volatile due to economic uncertainty and crisis.

It’s always advisable to closely monitor the trends of bullion for some time before making your investment.

Other than diversifying your portfolio, people also use silver to learn how to trade commodities. The fact that it is a cheaper metal than platinum and gold makes it a very enticing option. After learning and getting some experience with silver, the transition to more costly metals becomes easier.

4. Investing In Silver Is Easy

Investing in silver is so much easier as compared to stocks and bonds. There is less documentation, and you may also complete your investment without dealing with any stock brokers. 

Investing in silver is as easy as finding bullion or coin dealers. There are many of these brokers online and even in brick-and-mortar stores. They also provide different payment options, from credit cards and cash to cryptocurrency.

You can collect the silver yourself or have them shipped to your address. Some dealers will also recommend bullion vaults where you can store your silver for safekeeping.

That’s how simple it is.

How To Invest In Silver

There are four ways of investing in silver:

1. Silver Bullion


 

This involves buying and taking possession of silver. Investors will purchase actual coins like the American Silver Eagle coin, but, in addition to the coins, you purchase silver bars, but these are slightly harder to buy as a private party. 

2. Silver ETFs, ETNs, and Mutual Funds

A silver ETF gives you shares to the exchange-traded fund that owns the silver. Therefore, you won’t have direct ownership of the silver itself. Silver ETFs are available from many online brokers.

Buying silver mutual funds involves purchasing stocks of silver mining companies and 

silver ETNs are relatively high-risk since they don’t hold any silver or stocks in mining companies. They are ideal for experienced silver investors.

3. Silver Mining Stocks

If you are not interested in taking possession of the silver, consider investing in companies that mine silver. 

You should know that investing in silver mining stocks comes with unique challenges that are not present in bullion and some other silver investments. For instance, the risks of mining activities like capital costs, mine exhaustion, and labor unrest may impact your investment.

These stocks are also affected by environmental catastrophes, international disturbances, foreign government regulations, and currency fluctuations.

4. Silver Streaming Companies

Silver streaming companies finance mining companies. In return, the mining firms allow them to buy the silver at discounted prices and sell it at full market price. They make the difference as profit. 

Silver is a sound investment in 2021. It is a cheaper metal with high potential. Silver investments can also be anonymous, something that’s very hard to do with other more valuable metals.


Posted 1 month ago by Gramvio

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