Experts believe that silver holds a strong lead as an investment, compared to gold as they have a greater percentage increase during precious metals bull markets. At times, when gold prices have doubled, prices on silver have shown a triple rise in value while in extreme instances the price has even quadrupled.
History has proved that silver has consistently outperformed gold, as it has a wide industrial, commercial and consumer demand. Industrial applications accounted for nearly 40% of the mined silver while jewellery, bullion coins and exchange-traded products represented the remaining demand. Gold simply cannot match silver’s real world demand and its use as a form of money and store of value. The demand for silver is so great that since the 90’s mine production and secondary recovery of silver has fallen short of industrial expectancy.
When we look at historical charts of silver price and gold price, one will notice, not only has silver outperformed gold but any other precious metal for the last 10 years.
As supplies continue to fall short over the coming years and industrial demand continues to rise, higher silver prices will remain in vogue. According to experts, more gold is stored in World Bank vaults than silver, which indicates a shortage of supply.
There are many ways of investing in this precious metal- traditional and contemporary. Bars, coins and rounds are a traditional way of investing in silver. In fact, in some countries like Switzerland, bars are available over the counter across major banks. Coins also form an excellent store of value, especially those minted by Royal Canadian Mint and United States Mint. The American Silver Eagle is the official silver bullion coin of the United States while the Canadian Silver Maple Leaf is a silver bullion coin issued annually by the Canadian government.
Contemporary ways, which do not involve the use of physical silver, includes investing in exchange-traded products such as ETF’s from iShares Silver Trust, silver certificate, holding silver accounts, derivatives like futures and options and spread bets on the price of silver.
Experts also recommend investing in shares in silver mining companies but as a base metal investment along with other metals. While choosing the method of investment, it is always prudent to take advice of an expert, to make the best of the situation.
If you are looking for a lower price-point to enter the precious metals market for direct ownership, silver is always a better investment than gold. Investors concerned about its bulk and weight will find bullion dealers who work with third-party depositaries that will store silver with immediate liquidity upon request.