1. Silver can offer protection — The investors often flock to precious metals during times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver. While both gold and silver bullion can be appealing to investors, the white metal tends to get overlooked in favor of individuals investing in gold, even though it plays the same role.
2. It’s tangible money — While cash, mining stocks, bonds and other financial products are accepted forms of wealth, they are essentially still digital promissory notes. For that reason, they are all vulnerable to depreciation due to actions like printing money. Silver bullion, on the other hand, is a finite tangible asset. That means although it is vulnerable to market fluctuations like other commodities, physical silver isn’t likely to completely crash because of its inherent and real value. Market participants can buy bullion in different forms, such as a silver coin or silver jewelry, or they could buy silver bullion bars.
Chris Duane, an investor, has said he puts his metal where his mouth is by liquidating his assets and putting the money into silver bullion when prices get low. He believes that our money system, and indeed our entire way of life, is built on unsustainable debt, and the purpose of investing in silver bullion and the silver market is to take yourself out of the mathematically inevitable collapse of that system.
3. It’s cheaper than gold — Between gold bullion and silver bullion, the white metal is not only less expensive and therefore more accessible to buy, but it’s also more versatile to spend. That means if you are looking to buy silver in the form of a coin to use as currency, it will be easier to break than a gold coin because it is lower in value. Just as a US $100 bill can be a challenge to break at the store, divvying up an ounce of gold bullion can be a challenge. As a result, silver bullion is more practical and versatile than physical gold, making this type of silver investment more appealing.
4. Silver offers higher returns than gold — Buying silver bullion is affordable and stands to see a much bigger percentage gain if the silver price goes up. In fact, in the past, silver has outperformed the gold price in bull markets. From 2008 to 2011, silver gained 448 percent, while the gold price gained just 166 percent in that same period. It’s possible for an investor to hedge their bets with silver bullion in their investment portfolio.
5. History is on silver’s side — Silver and gold have been used as legal tender for hundreds and thousands of years, and that lineage lends the metal a sense of stability. Many find comfort in knowing that this precious metal has been recognized for its value throughout a great deal of mankind’s history, and so there’s an expectation that it will endure while a fiat currency may fall to the wayside. When individuals invest in physical silver, whether that be through buying a silver bar, pure silver, a coin or other means, there is a reassurance that its value has and will continue to persist.
6. Silver offers anonymity — Whether you value your privacy or not, silver has the same benefit as cash in that it gives users a degree of anonymity with regards to spending. Not everyone wants all of their transactions to be part of the public record, and privacy is a necessary component of democracy. That is another benefit for investors who want to buy silver bullion.