By Haris Quintana
Similar to gold, silver too is a precious metal that is becoming increasingly popular as an alternative investment, especially for people who wish to preserve and grow their wealth without the greater element of risk. It’s not like precious metals remain unaffected by the economic ups and downs – they do. However, silver, just like gold, maintains relative stability in its value.
Lately, there has been growing interest in silver bullion when we look at the precious metals market in Australia, and rightly so. Silver is far more financially stable than paper currency. Buying and selling silver in the country and abroad is easier than ever. Plus, silver is stackable and fairly easy to store – and it doesn’t even lose its value over time.
Photo courtesy of Flickr
But, when we talk about whether silver makes a worthy investment or not, there is a lot more to consider than just this.
Silver is in Great Demand
There is an increasing industrial demand for silver nowadays. With each passing day, people are exploring innovative and better ways of using silver in various industries. Silver today is a commonly used resource in the healthcare, food processing, electronics, textile, paper, and other industries. It even has application in water treatment plants. Hence, there is considerable industrial demand for this precious metal – and it is expected to increase in the coming years.
The Investment in Silver
If we consider the collective demand for silver, the precious metal is gaining importance in the eyes of investors too. Although investment in precious metals still isn’t all that common in the country, people are definitely gaining awareness of advantages. With more and more people getting inclined towards investing in precious metal in an attempt to preserve and grow their wealth through safe investment – silver as an investment option is winning.
It may not be as rewarding as gold, but it definitely has tremendous potential to turn your investments into lucrative returns.
Silver is Rare
Believe it or not, silver is in rare supply. In fact, the current supply of silver is far less than the prevailing demand in the market. You know what that means? Since it’s difficult to acquire, the price of silver is sure to rise – the increasing demand will push it upwards. This means that anyone in possession of silver bullions or bars will have the upper hand when there is a shortage of silver in the market.
It is however, important to acknowledge the fact that the demand for silver is directly proportionate to the economic progress of relevant industries. Any slowdowns in these industries will adversely affect the demand for silver.
Silver can be easily purchased in the form of bullion coins and bars in Australia at a fixed spot price. When you compare it with gold, silver is a lot cheaper – which means you can purchase it even if your investment budget is not big.
While you’re at it, we suggest you don’t go all out with spending your entire budget on buying silver. Split your investment portfolio into different precious metals for more promising returns.
