Tag Archives: Silver Bars

Why you Need to Invest in Silver Bars?

Precious metals like gold and silver have been known to be a source of riches in recorded history, from the earliest known human society down to modern times. In this article, we’ll discuss the reasons why people need to buy bars or bullions, what to buy and how to buy them. We will also take a closer look at why it is a good idea to buy silver bullions instead of coins.

Silver is affordable and very valuable

Not like gold, it is a lot more affordable. In today’s market, the gold price is more or less 70% higher than silver, but both will protect you from the financial crisis due to its high value. But the thing is, it is more affordable than gold. People that don’t have a lot of money but wants to invest in something valuable can quickly put their money in.

Valuable metal bars or coins are a physical asset

Although numbers sometimes measure wealth by fiat money or in a computer, both are subject to fluctuation and exchange rates. It is a substantial, physical asset where any country recognizes its value. It is small enough to put in your pouch or pocket and it is a private and confidential means of trade. Physical property like gold and silver bars is a protection against inflation, economic recession or cybercriminals who want to hack your financial assets. It is also a protection against the increasing cost of living.

When it comes to bull markets, silver outperforms gold

When it comes to silver and gold ratio, this precious metal outperformed gold from the year 1970 up to 1980 and from the year 2008 up to 2011. From the early 70s to late 80s, its value gained 3,105% in contrast to the 2,328% increase gained by gold. From 2008 to 2011, it gained more or less 500%.

To calculate the ratio between the two valuable metals, divide the current price of gold with the actual cost of silver at that particular time. This substantial price range happens because it has a smaller market in contrast to the market of gold. That is why even a tiny activity in the market will have a more significant impact on its price compared to gold.

Gold does much better than silver when it comes to bear market, but when it comes to bull markets, it outperforms gold. In the current market, this valuable metal has continued its dramatic rise with its 10-year high.

Most, if not all governments consider this precious metal as a real money

Although a lot of people do not think of it as a form of currency, it is rated by most economies as real money. Precious metals like gold and silver are sometimes referred to as real money because they’re not printed in the paper or stored in digital currency in computer servers like Bitcoins.

The worth of the money that is in circulation only has real value since it is fiat money. Fiat is money that the government declared as a legal currency based on the country’s currency supply and demand ratio. Silver is appraised real money because its value is based on the real value of physical assets. There are two reasons why it’s regarded as real money:

First, it does not need other parties to declare their current value. Stocks, cash, even bonds need an endorsement from other parties to make their contract validated. When you have coins or a bar, you own real money. Second, it is impossible to fail when it comes we are talking about silver. It is unimaginable to declare this precious metal as a default risk, not like other types of investments.

Want to know countries that produce the most silver? Click here.

Now is the perfect time to invest in silver

Mexico, India and the United States are the only nations in the world that continue to store silver. Other countries do not have “banks” or inventories. it is known to have limited supply. What is more, according to a 2017 report from the World Silver Survey, its production all over the world fell by more or less 0.6% in 2016, the lowest volume for mining since 1996.

Another fact that is found in the report is that the United States government’s inventories are down by 73%. One reason for this is because of the fall in price in the market in 2011.

Because of this, over the next couple of years, miners struggled to cut some costs so that their business will continue to earn a profit. Today the demand to produce this precious metal is higher than ever before since it plays a vital part in the industrial world and the silver jewelry industry plays a significant cultural role in every country’s rising population.