I had heard about silver as an investment for years but I only looked into it seriously about a year ago and that is when I started my initial investment in it. As with most of my research, it mostly consisted of internet research on silver investment sites and reading a few survivalist forums. Survivalists seem to be the most adamant group when it comes to silver investment and for good reason.
There are a few reasons why people choose to invest in silver:
Fragile Currency: The currency many countries is understood to have value and that value is backed by things i can’t even begin to explain because I don’t know enough about them. The most important thing to remember though is that the value of currency is always more than the value of the material it’s printed or stamped on. So there is nothing inherent in that currency that makes it valuable. Just the backing of that countries economy and the demand for their currency on a global scale. If something major were to happen, it is feasible that the value of the currency you use, would drop drastically or become useless. This is one of the things I gleaned from one of the many survivalist resources on the net. Now I don’t consider myself a survivalist but I can see where they are coming from. You would invest in silver in case a situation like this occurs so you have something for value to trade.
You can touch it: Sounds silly but silver is one of the few investments that you can actually see and touch other than say, a house. You can do this with money as well but most people keep that in banks so it just becomes electronic numbers. Nothing tangible there. You can invest in stocks but those are also all just numbers. People like the idea of having their investments liquid and easily accessible. I’m just going to keep referencing the survivalist mindset here but if something major were to happen and the banks crashed or your money and stocks were somehow deleted, where would you be? But if you had physical silver that you kept save in your own home, then you’d be able to trade that for food, goods and services. You can’t do that with investments that you don’t physically possess.
It’s a collectable: People love to collect things and silver is definitely a collectable item. Silver bullion comes in so many shapes, weights and sizes, it would be difficult to collect everything that is out there but one could try. Each country has its own designs for Silver Bullion. The United States of America has it’s American Silver Eagles and it Buffalo Rounds. Canada has it’s Silver Maple Leaf. Australia has its Silver Kookaburra. You pay less of a premium over spot for some of these than you will with others. Some have added value do to their designs or if they are limited edition even though they are all generally made of <.9 Silver. The make the idea of making silver collecting fun while still saving for your or your children’s future.
Diversification: Maybe you already have a lot of money invested elsewhere. Maybe you have some in the bank in some high-yield savings accounts or just your regular checking accounts, some stocks, a 401k or IRA, CDs, etc. Most people wouldn’t put their entire savings in one place, so silver is a good option for diversifying your investment portfolio.
Go on to How to Invest in Silver.