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Is Silver the NEW Golden Investment?

Silver has been steadily rising since September, just like gold. When other investments become unstable and decline, precious metals may be the best alternative.

By Lakhwinder SinghPublished 3 months ago 5 min read

The instability of the economy and financial markets brought on by the coronavirus pandemic has rekindled interest in precious metals like silver.

Silver has been steadily rising since September, just like gold. When other investments become unstable and decline, precious metals may be the best alternative.

I might occasionally tell you how silver got its name in history while we're talking about silver. The price of one ounce silver remained below $1 until the 1960s. The United States government frequently mints silver coins for precisely this reason.

550 BC: Between 206 BC and 220 AD, the eastern Mediterranean produced the first silver coins: Silver coins were part of China's official currency during the Han Dynasty, but only the royal family could use them.

775: 240 silver "sterlings" from the Saxon kingdoms were made from one pound of silver, which was probably about the same weight as the later troy pound.

1545: Production reached its peak in 1615, thanks to the discovery of the Bolivian city of Potosi and the silver ore mine Cerro Rico, which was regarded as the largest silver deposit in the world.

1792: The concept for a monetary system based on gold and silver was developed by Alexander Hamilton, who at the time was in charge of the United States Treasury.

Oct 15, 1794: Under the Coinage Act of 1792, the first official silver dollar was minted in the United States.

1875: The United States of America became the de facto monometallic gold standard in 1878 when the Resumption Act of 1875 was passed. Market prices fell as a result, indicating a rise in global demand for gold and a decrease in demand for silver as a monetary reserve.

1900: The United States' currency was based on gold, and the Gold Standard Act of 1900 made bimetallism illegal.

March 6, 1933: President Roosevelt declared a four-day bank holiday to prevent widespread panic and bank runs. This was done to prevent people from hoarding gold and silver and exporting it. The "Emergency Banking Act," which was passed on Day 3, caused banks to close. Before they could be reopened, they needed to be deemed "financially secure."

Jan 18, 1980: When gold price skyrocketed in response to the Soviet invasion of Afghanistan, silver reached a record high just below $50 an ounce. By the end of the year, the price of one ounce of silver had dropped to around $15.

2010: Spot silver prices have surpassed 30-year highs and outperformed gold by more than 80%.

April 25, 2011: U.S. silver futures reached $49.82, the highest level since 1980, while spot silver rose to $48.84 per ounce.

Silver has been a popular investment choice for decades and offers a valuable alternative to traditional stock trading. Silver is a safe asset, just like gold. A lot of people are wondering if silver will still be a safe investment in 2020 as more alternative investment options become available.

Situation of Silver in 2020 This year, silver fell to its lowest level in eleven years. However, the metal reached $11.74 per ounce in March 2020.

It had somewhat recovered since then, reaching a seven-year high of $30 per ounce in August. From that point forward, the asset traded between $20 and $20, where it remains today.

Experts believe silver's future is positive in spite of these uncertainties.

The advantages of investing in silver: Silver can offer protection. In turbulent times, buyers typically gravitate toward precious metals. Legal tender typically takes precedence over assets like gold and silver during times of political and financial uncertainty. Despite the fact that gold and silver bullion serve the same purpose, investors frequently choose gold over white metal. It costs less than gold, despite the fact that buyers may find both metals appealing: In addition to being more adaptable to spending, silver bullion is less expensive than gold bullion, making it easier to acquire. This suggests that silver coins will probably be easier to break if you want to buy them to use as foreign currency because of their lower value. It might be difficult to divide an ounce of gold bullion, just as it might be difficult to interrupt a $100 bill at a store. Investments in silver are more intriguing than those in actual gold because silver bullion is more adaptable and useful.

Silver is more useful for small-scale daily purchases because it is less expensive to buy and can also be more useful for selling. You might not want to sell all of your gold one day to pay for a small financial need. Silver is on its way. You can only sell what you want or need at any given time because it often comes in smaller denominations than gold.

Purchasing silver bullion could result in the acquisition of a much larger share if the white metal's value rises. This is because the white metal's value is roughly one-seventh that of gold. In fact, in previous bull markets, silver has outperformed gold value.

We are able to discuss the following: Silver outperforms gold during bull markets due, among other things, to rising industrial use, decreasing supply, rising global demand, and a favorable Gold/Silver ratio.

Consider the following prior to investing in silver:

Silver is typically purchased in bars or coins.

Investors can acquire silver in a variety of ways by investing in stocks and ETFs.

Silver bullion and coins are available for purchase at numerous online exchanges. You can also hire someone to store and hold them professionally, but this will cost you money. You also have the option of having the silver shipped to you, but this will depend on the exchange. If not, you can use cryptocurrency to buy silver online. You can buy a variety of coins that represent a stake in silver. If you can't afford to buy a lot of silver, this is the only way to buy small amounts.

In general, silver appears to be a relatively secure investment for 2021. Traditional assets like silver continue to thrive despite the rapid introduction of cryptocurrencies to the investment market. In point of fact, it would appear that they will achieve success in the years to come.

You ought to possess between 2% and 3% silver and between 8% and 10% gold; both as a means of diversifying investment portfolios.

However, you should consult a seasoned financial advisor before investing in precious metals.

Now have some silver.


About the Creator

Lakhwinder Singh

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