Weak return on investment While silver ingots may be a good safe asset, they may not perform as well as other investments, such as real estate or even other metals. Mining stocks, especially silver stocks that pay dividends, may also be a better option than silver ingots for some investors. If the price of silver goes up, you can make a profit with silver coins and ingots, but that's the only way to make money here, since the physical product doesn't produce cash flow, unlike a quality business. It's also still relatively cheap, especially compared to gold, presenting investors with more buying opportunities.
Investing in silver isn't a good option for everyone, and some investors prefer to focus on companies with cash flow rather than investing in the metal itself. Investors like silver for many of the same reasons they like gold and precious metals in general. As a result, many investors keep gold in their portfolio specifically if they need liquidity during a recession. Finally, like all physical assets, silver is subject to theft, so you'll have to protect it and even insure it.
Bankrate does not offer advisory or brokerage services, nor does it offer individualized recommendations or personalized investment advice. In addition, investors are informed that the performance of previous investment products does not guarantee future price appreciation. Now could be the perfect time to take the plunge, as the combination of a bull market intersects with increased demand from both the industrial sector and financial investors. Many miners are risky equipment, and some have yet to dig a hole in the ground, let alone extract silver from it.
Silver futures are an easy way to bet up or down the price of silver without the hassle of having physical silver. Silver has always existed, giving people a sense of stability as a rare and limited-supply commodity in which to invest. Both gold and silver are valued precious metals, but they can have subtle differences when it comes to investing. Those looking to sell silver will probably have a harder time finding a buyer than those who sell gold.
Approximately half of all silver bought and sold on the market is used commercially, with applications ranging from dentistry to electronics. As with any investment, the time to buy depends on the current market and the investment objectives of each investor.