Is silver a good investment for beginners?
Is it worth investing in silver? And if it is worth it, what is the best silver to buy right now? This article will also show you what silver price can be considered as good and how to buy silver bars safely . If you are interested in silver investments, you must read it!
Is silver cheap now?
Since July 2020, a troy ounce of silver usually costs more than $20, and sometimes the price exceeds $25. Therefore, the drop below $19 per ounce in July this year was quite a surprise for investors across all markets. Currently, an ounce of this metal costs about $20.
So can we say that prices are low now? Definitely! Although prices are now trending upward, a silver stock price oscillating around $21 or even $21.5 per ounce is worth considering.
And what about the future?
There is plenty of room for growth, and major corrections are unlikely. The approaching crisis means that many people will want to buy this metal in their near future, so silver investments may have an extraordinary good rate of return. If you are planning silver investment, now you have an opportunity to make a good deal.
Investing in physical silver requires a small amount of cash
Do you know how much an ounce of gold costs? Nearly $1,800. That's a lot of money! More than half of American households earn less than $50,000 a year, which equates to 27.8 ounces of gold a year.
Silver stock prices are much lower, so the average American family can buy a lot more of it- 25000 ounces!. This investment metal is much more affordable and almost everyone can buy at least a few silver coins or silver bars.
I'm 18 years old. Is silver worth of buying?
If you are a teenager and have made your first money with Paidwork, silver is a good investment for you. The risk is low, and the returns are better than when investing in gold or bonds. However, you must keep in mind all the tips mentioned in this article. Many young people become victims of scammers.
Silver behaves like gold, but gains are higher
When you analyze gold and silver price charts, the analogy is easily visible. When the gold market gains, the silver market behaves similarly. The difference is that silver has bigger price dynamics. Silver rises more sharply and loses more rapidly.
When investing in silver, you may feel that your portfolio behaves similarly to the portfolio of those who own gold, but the investment risk is a little higher.
Silver can hedge against inflation
This point is related to the previous one. There's a lot of silver to buy, but much of it is consumed in industry, so demand for silver is unlikely to fall. In addition, it will be hard to sharply increase production of the metal, so the supply will be rather stable.
Silver can be hidden
Although it is very common to invest in silver in paper form (derivatives on silver), buying physical silver allows you to stay anonymous and is an opportunity to hide your savings for a rainy day. Silver can be buried, hidden in a safe or other unusual place. Remember to keep it a secret!
OK, but where can I buy silver coins and bars?
You can buy them literally anywhere. A lot of dealers sell coins and bars with delivery, so if you are planning to buy silver online, in big countries like the US, UK, Canada or Australia, it won't be a problem. We can recommend you international companies like BullionByPost, JM Bullion and The Royal Mint. When you buy silver from these suppliers, you will pay a price similar to the silver stock price. Last but not least, the risk of a scam is very low, and they take care of your personal data, which is also important.
Please check if you have to fulfill any requirements set by your administration to invest in silver legally. We haven't found any restrictions on buying silver in the US, Canada and the European Union. However, it's possible that it may be different in other parts of the world, so please, take care of it before you decide to invest in silver.
By the way: the text isn't financial advice and shouldn't be treated as such. Any decision related to money should be independent. The article is not sponsored by any metal trading or mining company.