Is Silver a Good Investment For Your Silver IRA?
Silver IRA Should You Invest For Retirement In Silver?
Any investment has an element of risk. Some markets are more volatile than others; look at cryptocurrency over the last few months as an example. Investing in silver and silver bullion is seen by many as a relatively safe place to invest, particularly for the longer term.
Why is Silver a Safe Investment?
Silver is a safer investment than some forms of investment as when the world finds itself in economic crisis for some reason, such as the recent COVID pandemic investor seek to find refuge in the safe havens of precious metals and thus the price of silver and other precious metals do up as demand for the precious metal outreaches the amount of silver available in the marketplace. This is the basis of all economic theory supply versus demand.
It is unlikely that the world has seen its last economic crisis. So, the price of all precious metals is likely to continue to rise and fall. Silver, as opposed to Gold, Seems to be at a lower price point when you look at comparative data over the last ten years. Some market analysts are saying Gold has already peaked; who really knows. Our expectation is Gold will continue to rise in the longer term. However, you might see some short-term profit-taking as we come out of the Covid pandemic in first world countries but remember most remaining precious metal deposits are not helping in first world countries. The rollout of Covid vaccines is not as advanced or as affordable to third world countries.
In the second recession, we believe silver might be a better investment than any other precious metal is that is widely used in manufacturing. In fact, there is hardly any electronic component that does not contain some amount of silver. Silver is used so widely in electronics as it is the worlds best conductor of electricity; This is why you will find silver in everything form your mobile phone through to your car and your washing machine. Silver provides an excellent coating used on nearly every printed circuit board to provide excellent electrical conductivity. One more recent demand driving the need for silver is the take up of Radio Frequency Identification Tags (RFID). The chips are sprayed with a thin layer of silver.
Photographic Silver in 1999 the USA film market used 93 million ounces of silver; this usage is in decline as digital photography has replaced film-based photography but as this decline has happened other industry sector have absorbed the spare capacity.
Solar Energy and the use of photovoltaic started to impact the demand for silver in 2000, but again in recent times we have seen a decline in the physical amount of silver required in each solar panel as technology has improved.
As COVID became firmly established around the world we have started to see silver and cooper being used in antimicrobial filters. A recent example of this was SoCals Metrolink filtration scheme.
As you can see from the above examples silver has always been in demand and as one demand declines another seems to emerge. As climate pressure increases and the worlds global ecconomies look to reach net neutral targets we can predict and increased demand for silver, driven by Electronic Vehicles (EV), Airconditioning and water and air purification needs.
Our belief is Gold is currently at a high point whereas silver is relatively low. As buyers take profits from gold holdings, they will still want the security that precious metals brings. They will still want to diversify their portfolio of holdings to ensure security in case of economic crisis, so they will turn to silver.
Silver should be considered as both a physical holding and as part of your retirement planning. Although a great deal is spoken about in relation to Gold IRAs’ you can have a Silver IRA or even a mixed precious metals IRA