When the price of silver increases, interest from investors in the silver market rises. Like gold, the metal is considered to be a safe haven asset that investors can use to protect themselves in times of uncertainty. Silver can also be used by investors to preserve their wealth in times of difficulty. Today, we look at the advantages and disadvantages of purchasing silver bullion.
Advantages of Investing in Silver Bullion
- Provides anonymity
Silver affords its users a degree of anonymity when it comes to spending, just like cash. Individuals who would prefer to not have their transactions in public records and are keen on being private should look into purchasing silver bullion.
- Provides higher returns than gold
Unlike gold, silver is more affordable and will see a higher percentage gain if its price rises. Data from GoldSilver reveals that between 2008 and 2011, the price of silver increased by almost 450% while that of gold only grew by 165% in bull markets. This means that it is possible for investors to hedge their bets with silver bullion in their portfolios.
- Cheaper than gold
As mentioned above, silver is less expensive than gold, which makes it more accessible to purchase. It is also more versatile to spend as well as more practical to use, in comparison with physical gold.
- Tangible money
Silver bullion is a tangible and finite asset, which means that the likelihood of it crashing due to its real and inherent value is low. This is unlike financial products such as bonds and mining stocks, which are vulnerable to depreciation because of actions such as minting money. It should be noted, however, that silver bullion is vulnerable to market fluctuations, just like other commodities.
Disadvantages of Investing in Silver Bullion
- Weak return on investment
Despite being a good safe haven asset, silver may not perform as well as other investments such as other metals or even real estate. This is why those interested in investing in silver should check out all their options, including investing in silver futures or exchange-traded funds.
- Risk of theft
Investors holding silver bullion are more vulnerable to theft, which is why it is important to keep assets safe through the use of a safe box or safety deposit box.
- Lack of liquidity
Physical silver isn’t as liquid, which may hinder investors from making purchases as they will need to convert the physical metal into currency in order to use it.
Those few shortcomings notwithstanding, silver bullion is likely to remain a hot favorite among investors since firms such as Asia Broadband Inc. (OTC: AABB) cater to a variety of market segments, such as jewelry making and other industrial uses of silver. Consequently, the demand for silver is unlikely to collapse any time soon.
NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB
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