Silver Experiencing Increased Demand
The 2020 pandemic has shaken the world’s economy in many ways. One of the many ways the economy has changed is the interest in investing in silver. According to the Silver Institute, global silver demand will rise to 1.029 billion ounces this year, up 15% from 2020 and exceeding a billion ounces for the first time since 2015. Keep reading to learn more about why the demand for silver is going up, why you should invest now, and how to get started investing in silver today.
Why is the Demand for Silver Increasing?
The simple answer for why the demand for silver is increasing is the effects of the 2020 Coronavirus pandemic. According to the same article, the reasons for the increase in demand for silver are as follows:
- The coronavirus sharply reduced the use of silver by manufacturers and jewelers but increased demand from investors who wanted a safe asset to ride out economic turbulence.
- This year, with most economies out of lockdowns, demand has risen across the board. The institute said, from manufacturers of goods including solar panels and electronics to jewelers, makers of silverware, and investors in silver bars and coins.
- It predicted the silver market would be undersupplied by 7 million ounces in 2021, the first deficit since 2015.
- Those numbers exclude exchange-traded funds (ETFs) that store silver for investors, since these funds hold wholesale silver bars without remaking them as other users of silver do.
- The institute, whose figures are prepared by consultants Metals Focus, said it expected ETF to stockpile less than last year but far more than was typical before the pandemic.
Why Invest in Silver?
Silver is a smaller market, making many people wonder why it would be a smart investment to make. The good news is, investing in silver has many of the same benefits as investing in gold. These include:
- No counterparty risk. Stocks, bonds, real estate, and many other investments include another party needing to complete their end of a contract. With silver, you don’t need to worry about any of that. You can sell whenever you are ready and don’t need to wait for another party.
- Useful as currency. Silver is often used in currency more than gold, and it also comes in smaller denominations than gold, allowing you to sell smaller portions quickly and easily for when you need cash.
- Silver can outperform gold. Silver has excellent volatility, meaning it can fall low and soar high. When soaring high, like it is right now, it very often outperforms gold.
- Industrial use is growing. Silver is in so many everyday things. Jewelry, silverware, batteries, solar panels, electronics, and more are just a few examples.
- Demand is growing. As mentioned, silver is experiencing increased demand, and this makes it more valuable, driving the price up.
- Hedge against inflation and your portfolio. Just like gold, silver can protect your investments from inflation. While the value of the dollar decreases, the value of precious metals increases.
How to Invest in Silver
Getting into the silver game has never been easier. While silver is experiencing increased demand, get in as soon as possible so that your investment can grow. There are many ways to invest in silver, including:
- Owning physical silver. Owning physical silver bullion and silver bars is a great way to invest in silver. You can cash out at any time, sell small portions or large portions, and get the best price possible for each sale.
- Silver stocks. Investing in silver can also be as easy as investing in silver mining stock. As the price of silver goes up, so will the value of the company. However, you will need to do your own due diligence as far as researching which companies you prefer to invest in.
- Precious Metals IRA. By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into our Precious Metal IRA Account, you can achieve the same profits that you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides. Self-directed precious metals IRAs allow you to invest in gold and silver so you can better diversify your investment portfolio, which can be crucial protection during turbulent financial markets.
About Priority Gold
The 2020 Coronavirus pandemic has made many people re-examine their savings strategies. Investing in precious metals is a great way to help protect your retirement savings and other investments while inflation rises and the economy continues to go through changes.
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