Which precious metal should you invest in? While there are lots of options, the best ones include gold and platinum. In addition, archaeologists have found silver items dating back to 4000 BC from ancient Greece. There are several reasons to consider this metal that has the same name as its color. One of its best-known benefits is the price tag, which is lower than gold. However, this is just one of several benefits to know about. Read on to know more about its other advantages.
The precious metal is available in several forms, including bars and coins. In terms of collectability, silver coins are an excellent option since you can find a wide range of sizes, designs, mints, etc. It is similar to other precious metals like gold.
Meanwhile, if you want to make a bigger and more long-term investment, bars are generally a better option. For example, there are silver bars on the market of different sizes. It allows you to pick one that best suits your goals in terms of total investments.
Bars are also generally easier to convert into cash. If you have a cash crunch, for example, it is much easier to find bar buyers so you can get back on track financially.
The precious metal is also considered a hard asset like gold. Australia’s paper money is not backed by any hard assets. Thus, if you are considering an investment that is more likely to hold its value than paper money, silvery metal is a wise choice.
A caveat to consider is that quality precious metals are not cheap. In 2019, Australia’s most valuable coin (1930 penny) sold for over AUD1.1 million. Compared to other valuable metals like gold and platinum, silver has a lower price tag.
You can even find quality coins in the under-AUD50 price range. However, there are various factors, including the metal’s form, weight, and mint. These are all critical factors to weigh that determine the price per ounce or gram.
The price of a small silver coin will be much lower than a large bar, for example. Meanwhile, such precious metals are a big investment, so it might be worthwhile adding a certain item to your collection of precious metals
Another major benefit is quality precious metals tend to hold their value. In the short-term, it might rise or fall. However, such metals tend to be wise investments because they can retain their value over time.
Just like gold, there are various silver mints within Australia and other nations. For example, the Royal Australian Mint produces all coins used for legal tender.
You can also find products from other international mints such as Canada and South Africa. This provides an outstanding option for coin collectors, for example, since collectors can find coins minted around the globe.
Supply and Demand
Another key issue is that the mine supply has been dropping in the world’s largest producers in recent years. This includes:
While global silver supplies are shrinking fast, the demand has also been spiking. In fact, the “gold/silver ratio” actually favors the latter precious metal. This statistic shows which one is the best buy at any particular time.
While today’s investment world includes many precious metals to pick from, there are many good options, including gold and platinum. Another wise choice is silver. In terms of factors like uses, value, and demand, it could win first place for your next investment.