Reasons to Invest in Silver and Skip Gold

Most people in the world today have experienced the pain of the words – national debt, inflation and credit crisis. Suddenly your hard earned savings are of little value. Financial advisors and other economic divas are propagating the wisdom of investing in other avenues such as gold at such times. You may be even contemplating making investments in gold yourself. However, there are many financial geniuses who are turning towards the white metal and what’s more they are gaining far more profit from silver investments than those invested in silver. Though gold is a traditional method of protecting against inflation, in the current scenario investments in silver are offering far better returns. Going by the statistics gold is by far overvalued. While few see the opportunity that awaits investors in the silver market. Some people are afraid to invest in silver given the volatility of silver prices. Gold prices are relatively more stable and are therefore considered a safer option. However the volatility of prices on silver is in itself a major reason for the profits earned from silver. The fluctuating silver price gives much room for speculation while gold tends to remain relatively stable as compared to silver.

Silver’s dual role as a precious metal and a component used in industrial applications is largely responsible for the opportunity for profits offered by the metal. As the industries grow, so does the demand for silver. Many industries such as auto, photography play a huge role in making up the demand for silver. Economies like India and China are also huge and guaranteed markets for silver. Even if the demand for silver in the jewellery industry might lower depending on the current fashion trends, the silver demand by industrial companies never comes down. Silver production is increasing day by day to keep up with the demand.

Today there are countless options for investing in silver, such as coins, bullions, ETF’s and stocks of mining companies. Coins that are a rarity are much more valuable than its sole intrinsic value. People investing in silver mining companies stand to gain profits as huge as 4 times more than those investing in gold. Silver is the most profitable and applied metal in the world today.

So investing in this white metal is not a difficult choice to make. It will earn you many profits than gold ever could. A little research to learn how the prices soar and fall, will go a long way for earning profits in silver.

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