Silver has been a valued asset for thousands of years. It has been in demand because of its scarcity, its beauty, and its versatility of uses. Throughout the ages, silver has been a primary investment product with a vibrant worldwide market attracting millions who buy and sell the metal based on its history and future. Like gold it has fluctuated in price throughout the years but overall for those who have learned how to play the market for investing in silver, it has delivered great returns.
Lately there are some great reasons to look at silver as a great investment. Here are the three top reasons:
Many are Predicting a Stock Market Slowdown or Crash
Stock markets around the world have been increasing it levels and over a time period unseen in history. Typically there are major corrections where stocks settle at lower levels for a period of time and then they recover and reach new highs. This correction usually occurs every 7 to 10 years. What we’ve seen over the past 10 years however is that stock prices have continued to rise nearly unabated. Analysts are trying to understand these new patterns to be able to predict where the market is going.
Although there is disagreement about when it will occur, nearly all analysts say that the next market correction will be in the near future, and that is will be large and long. Some predict a deep recession, while others are predicting that markets around the world will go into a recession.
When this occurs, investors will be looking for safe havens to park their cash. Traditionally one of the largest safe havens has been silver because of its safety and consistency. For this reason many investment experts are advising stock market investors to begin purchasing silver as a hedge against the stock market. For those investors who are not knowledgeable about the silver market, it is the ideal to learn how to invest in silver.
Investors in Markets Outside of the US are Nervous and Looking to Diversify
Donald Trump has begun looking at all of the United States trade agreements with the rest of the world. He’s searching to find instances where a country has a large trade surplus with the United States and then to find ways to lower that surplus. His strategy appears to be applying tariffs to that country’s goods coming into the United States. Because the US is such a large purchaser of products, local companies in other markets are very nervous about the current US strategy.
As a result stock markets in markets that have a surplus with the US are beginning to have great pressure and even investors in Chinese companies have a lot of concern. These investors are looking for additional Investments that will be stable in a world where there are significant trade wars. The prices of gold and silver will likely appreciate greatly in the event there is a trade war between the US and other nations.
Silver is a Much Cheaper Investment Compared to Other Hedge Investments like Gold
When people search for a hedge against Investments like the stock market and investing in startups and other higher risk Investments, they look for those Investments that have a long history of stability and certainty. The most popular of these Investments are real estate, bonds, gold, and silver.
Each of these are proven to be effective hedges against high risk Investments in most cases. Of this group, the only affordable hedge is silver. Investors can purchase silver at a fraction of the cost of any of these other Investments, and liquidate their Investments out of silver nearly immediately. For this reason silver is a perfect choice for price-conscious investors.