Invest in silver
Investing in silver can be an ideal first step if you want to invest in precious metals. Silver has a lower price than gold, so even with a limited budget you can already start with this investment. Besides, investing in silver is considered a safe haven. Especially in economically uncertain times, as it acts as a hedge against inflation. But just like all investments, there are some things you should consider before you start investing.
Investing in silver: what do I consider?
There are several factors that can have a significant impact on your silver buying decision. For instance, timing is incredibly important. We list all the considerations you best take into account when investing in silver.
1. Lower premiums
The spot price is the current market price of silver. However, as with gold, you also pay an additional premium for silver. This amount covers the costs arising from its production, distribution, or sale.
The advantage with silver, however, is that there are usually lower premiums on top of the spot price than with gold. So, in total, you pay a lower price for the same amount of precious metal.
Inflation, which is the general rise in prices of goods and services. Read: when life becomes palpably more expensive, and you can buy less for the same money. Generally, silver is considered a hedge against inflation.
In times of inflation, silver retains its value or this precious metal itself can increase in value. Note that when interest rates rise, silver's appeal often drops. Silver does not yield interest or dividends. The upside is that when interest rates are high, silver prices tend to be lower. In short: a good time to invest in silver.
3. Economic and political events
What is special about silver is that it is a commodity that is also in high demand from industry. That industrial demand for silver exerts a major influence on the price. So do geopolitical events: conflicts and tensions can have an impact on silver supply chains. So, when there is scarcity in the market or increased demand for silver from industry, the price will rise.
4. Investing in physical silver
When you buy physical silver from a reliable partner, you know the exact purity and weight of your purchased product. You therefore know the exact current value of your investment.
Important to remember here, is that silver is considered a raw material and, as a result, 21% VAT applies.
5. Long-term vision
Investing in silver is a good strategy for investors with a long-term view. As mentioned earlier, silver has a volatile price. However, over the past few decades, the value of silver has increased historically. If you exercise patience as an investor, this means that in the longer term, the value of your precious metal is likely to rise steadily. Note that historical performance is never a guarantee for the future.
Is investing in silver for you?
Long story short: there is no ideal strategy when it is best to invest in silver. In general, though, it does pay off to invest in silver, especially if you can commit your investment over a longer period of time.
Are you keen to invest in silver? Then take a look at our range of silver bars.
Would you like more information before taking the investment step? No problem, our experts will be happy to help.