Sometimes referred to as the ‘poor man’s gold,’ you will be surprised to know that silver is more than just an affordable gold proxy.
They say that its intrinsic value makes it appealing to investors in the event of a sudden economic crisis.
But is silver worth investing in? Read on to find out more about this investment strategy, as well as the risks that come with it.
Why you should consider investing in silver
The main reason you should be investing in silver is because it’s cheaper than investing in gold.
You can get more with your money, making it a wise choice for investors who want a lower capital.
Because silver has a smaller market, making it more volatile compared to gold, there’s also a tendency for a sharp rise in prices.
When the market is unstable, silver can be considered a safe investment. Investors often diversify and move their funds to precious metals.
If you’d like to put your money in a good investment like precious metals but can’t afford gold just yet, silver is also a good and affordable option.
How to invest in silver in the Philippines
Buy silver bars and coins
The most obvious route is buying a physical silver bullion in coin or bar form.
Precious metal dealers offer them in different sizes. But you can find silver coins and bars for as small as an ounce or as huge as 1,000 ounces.
This is the simplest method, and you’re a proud silver bullion owner just like that. You can sell your silver bullions anytime you want, and the only thing you need to handle is storing, insuring, and transporting them.
Buy Exchange Traded Funds (ETFs) backed by physical metal
Exchange Traded Funds are securities that trade on an exchange and work just like a stock. How valuable they become depends on how they perform.
Silver ETFs track and rely on silver metal prices in the market, usually on a specific number of silver or on a group of bullion assets.
It’s the most feasible and best way to be a silver owner and trader. Because it’s a liquid asset, you also don’t need to be concerned about storing, transporting, or insuring your silver.
Buy mutual funds or ETFs with mining stocks
Invest in companies that deal with producing, distributing, and using silver through stocks and mutual funds.
Generally, these companies track the value of silver in the market, which means that they have value than just the regular value of supply and demand.
Because of this, these mutual funds or ETFs are more stable and reliable than pure silver.
However, it also means they are subject to potential liabilities that are usually business-related.
Things to note before investing in silver
The price of precious metals, like silver, can be unpredictable. If you need to diversify your investment portfolio, do not put too much or all of your money in silver.
This can make you vulnerable to fluctuating silver prices and make you miss out on potential gains in the stock market.
Also consider the high fees and commissions when you invest in silver stocks.
Is it worth investing in silver?
The answer will depend on your needs. If you want to learn or be exposed to investing in silver, purchasing an actual silver bullion or investing silver ETFs will work well.
If you wish to get a return for silver investments, you should know that mining stocks are riskier and more unpredictable. High returns are not always guaranteed.
Even if investing in silver is not for everyone, you can still invest if you are confident with the market, and if you will invest in companies who have the greatest experience and exposure to silver.
But for the bigger chunk of your investments, it’s probably best to stick to investments that you are very knowledgeable about or are more on the conventional end of the spectrum.
What do you think? Does investing in silver sound appealing to you? Let us know in the comments!