Silver is a better hedge against inflation than gold due to industrial use. This means that in a strong economy, demand is high, and in a weak economy, demand is lower. Due to the lack of need for industrial use of gold (compared to silver), it is a weaker hedge against inflation compared to silver. Another advantage of silver is that it serves as a hedge against inflation.
Because it is a physical asset, it has an intrinsic value that dollars and other currencies lack. Silver also offers long-term value and works well when interest rates are low. Investors can buy physical silver in the form of bullion coins, bars or bags of scrap silver. This is the purest form of investment in silver, but it does incur storage-related problems and expenses.
Investing in silver coins and bullion is a favorable way to hedge against inflation and other changes in financial markets. When the Federal Reserve controlled inflation in the 1980s, much of the silver bars and gold coins purchased in the 1970s were sold and revenues were reinvested in paper. Silver futures are an attractive way to play in the silver market due to the large amount of leverage available in futures contracts. If you don't want to own physical silver directly, but you also want a lower risk method than futures, you can buy an exchange-traded fund (ETF) that holds physical silver.
If you anticipate that financial markets could soon collapse, the best silver to buy would be physical form, bullion and coins. An ETF that holds physical silver will deliver the return on silver prices minus the ETF expense ratio. Coins made before 1964 contain about 90 percent silver, and you can buy them for the value of their silver content. Traders can also bet on the silver market through an ETF that holds futures contracts through ProShares Ultra Silver (AGQ), although it is better as a short-term bet than as a long-term hold, due to the structure of the fund.
Experts have pointed out that SLV and SIVR are recommended ETFs for investors who prefer to match prices independently of silver without necessarily having to own bars or coins. Since an investment of the same size literally buys more silver than gold, that means that silver holdings will take up much more space and cost more to store and transport them. Investors like silver for many reasons, but many see it as a store of value in times of uncertainty, while others see silver and other precious metals such as gold as protection against inflation. A common retail investor can now own silver funds through the iShares Silver Trust, a stock listed as SLV on NYSE.
Supply and demand are the main causes of changes in the price of silver, and therefore, when compared to gold, silver is As a result, silver bars are more practical and versatile than physical gold, which makes this type of investment in silver more attractive. Buffett's purchase of silver, which became legendary among silver investors, was probably for investment purposes. There are a couple of key things that will put a coin in this category, although sometimes the definition can be a little confusing depending on who classifies the coins. There are a few key ways you can get junk silver coins to add to your collection or investment portfolio.
