Is Silver a Good Investment?

Is Silver a Good Investment?

Disclaimer: (This information is not meant to be used/taken as investment advice and we are not investment professionals this is just a starting place for your own research to begin to find out if silver is right for you)

Introduction

Gold is the precious metal that usually gets all of the praise, attention, and hype from investors. What about silver? Is silver a good Investment? as a metal, comparatively it tends to be an afterthought. Silver has been a steady medium of exchange between humans for almost as long as gold.

Silver is less rare than gold but still is considered a precious metal by the majority of people and markets. In fact, a majority of gold mines also mine silver as a by-product since gold and silver can be found in similar types of areas. The 2020 Mined amount (which is most likely less than average because of covid 19) was a total of 25, 000 tons.

Similar to gold you can buy silver in many different forms. Bullion, Coins, Numismatics, and jewelry. The most common types you’ll most likely see are coins and Jewelry. The two most common types of purity for investment-grade silver are Pure and Sterling silver. Pure Silver is 0.999%+ and sterling silver is 98.5% silver. In Canada Pure silver is exempt from taxes where sterling silver is not.

Is Silver a Good Investment?
Blog Post:- Is Silver a Good Investment? This is an example of a 1 Troy Ounce silver Bullion Canadian Maple, One of the most popular silver bullion coins.
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Blog Post:- Is Silver a Good Investment? This is an example of 80% Silver, 2 Canadian 50 Cent Coins. These coins were once used in circulation. Also known as junk silver. It is bought and collected by many silver stackers for a simple/recognizable way to buy silver in fractional amounts
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Where Does Silver Get it’s Value From

What I’m about to talk about is not the spot price. The best way to explain it is with an example. The Canadian Dollar only has wealth/purchasing power because the Canadian government states it has worth and we all agree. This system only works as long as the citizens continue to use, accept and pay taxes in the Canadian dollar. Governments just don’t use taxes to raise the money they also use taxes to manage the value of the dollar. They do this by creating new taxes or higher taxes that artificially create more demand for dollars. In turn, this allows the government to continue to deficit spending on policies.

Silver doesn’t rely on government policy/central bank policy or the consistency of elected officials. What silvers does have is wide market demand. First will list off some of the industries that use silver in production.

  • Jewelry
  • Medical supplies
  • Clothing(silver has anti microbial property)
  • Investment
  • Electric cars
  • Cell phones
  • Most if not all electronics (silver is really good at conducting electricity and is cheap)

A lot of these industries couldn’t function without silver including “medical industries” because of silver’s anti-bacterial properties.


Mining Silver

As a commodity Silver has to be mined out of the ground then processed, melted, poured, and shipped to the industry that will utilize the silver in production. Whoever offers the top buy price will receive the silver. The reason they sell to the highest offer from the industry is that they have to cover their mining/processing expenses and maximize profits for potential shareholders.

This market interaction is where silver gets its value. The spot price is just what people are willing to pay for the end product of this transaction. Miners want to make this transition happen at the most profitable price while also getting/selling the best yield of metals.

Why is silver a good investment?

Silver could and should be recycled/retrieved from thrown-away electronics(If able to be done in a mostly/completely greenway) at a higher amount than is currently being achieved. Recycling although is not the long-term solution. Unfortunately, until we figure out a way to mine silver(and other metals/minerals) from asteroids. The supply side will have a difficult meeting demand for silver from here on out. This is also the assumption it will be cost-effective enough to make it worthwhile to bring the silver is back onto the planet.

Silver also acts as a protection from inflation for similar reasons that gold does. In many ways, silver is regarded as the cheap alternative to silver. We also have to take into account the exponential growth of the human population while mixed with the exponential adoption of green energy globally. We currently do not have enough silver to meet our demand for green energy needs, crypto mining needs, tech/electronic needs, medical supplies(this will be even more so affected by the total population growth of the planet), and much more. So 1 of 2 things will happen…

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Possible Out Comes

The first outcome, we will shift and use other cheaper alternatives to silver if there is a shortage and the price goes through the roof. In the event there is no silver to buy, we only have to wait till the price reaches a price point for mass production to begin again. (Then the supply becomes large enough to cause the price to start falling again). On top of that Certain fields like microchips and other important electronics will always need a supply of silver. This demand will make sure silver always has some value even though it may fluctuate.

The second outcome would be that we keep up with our demand for silver. We keep using it as a mainstream commodity with it being used by an ever-increasing market. This is will also lead to higher prices. While our observations could be wrong for one reason or another since the economy has so many factors.

ether outcome It seems to be clear though that the price of silver will move up steadily over the coming decades. One could say it would be like buying gold in the early ’70s at 35$/Per Ounce.

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Why do gold and silver protect against inflation?

Introduction Gold and silver are one of the simplest investments, Austrian economist Carl Menger points out in his book origins of money. “precious metals have had an impeccable 5000 years of stability, development, innovation and use as a medium of exchange between people”. Precious metals have lasted as a medium exchange for most of theContinue reading “Why do gold and silver protect against inflation?”

Published by East Liberty Coins and Gems

East Liberty Coins & Gems. We are an online Precious Metal & Gem Dealer. We carry Bullion, Numismatics coins, Ancient coins, and Precious gems (Emeralds, Rubies, and Sapphires/Coming in 2022). All orders ship from Halifax NovaScotia, Canada.

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