Why Silver Is A Better Investment Than Gold
Question
Exposure to silver, in coins, bars, or even stocks can be a great alternative to gold investment. Much like other precious metals, silver shares a few things in common with gold. It is relatively rare, expensive to mine, forged into fashion items with immense appeal, and used in various different industries. However, similarities end when it comes to value and price. Silver is arguably now a much better investment than gold and is also much less ‘in-demand’ than gold. Indeed, one major upside to silver is that it does not get as much attention from investors when geo-political events spark anxiety. That is to say: silver is not yet hoarded by investors nearly as much as gold.
Answer ( 1 )
The general consensus among market watchers, researchers and precious metals experts is that the long-term forecast for silver is positive. Although no asset is without downside risk, the case for silver is supported by heavy industrial use as well as its strategic importance as a currency hedge during times of uncertainty. However, the strength of the dollar will play an important role in silver’s performance.
Exposure to silver, in coins, bars, or even stocks can be a great alternative to gold investment. Much like other precious metals, silver shares a few things in common with gold. It is relatively rare, expensive to mine, forged into fashion items with immense appeal, and used in various different industries. However, similarities end when it comes to value and price. Silver is arguably now a much better investment than gold and is also much less ‘in-demand’ than gold. Indeed, one major upside to silver is that it does not get as much attention from investors when geo-political events spark anxiety. That is to say: silver is not yet hoarded by investors nearly as much as gold.
Tyler Gallagher, CEO and Founder of Regal Assets wrote in his ‘Forbes Forecast for Silver in 2020 – 2021’ Council Post, “This has been a tumultuous year for investors, with Brexit, negative bond yields, a global trade war, an oil price crash and, of course, a worldwide pandemic that’s ushered in what’s expected to be the worst recession since the Great Depression. The question, then, is whether our money can be safely invested anywhere.
“Fortunately, many experts are bullish about precious metals. Although the price of gold has risen roughly USD400 per ounce in the past year, some analysts suggest that silver may be the better buy in the medium- and long-term,” says Gallagher.
is silver a good investment in 2021
The expectation is that buying shares in these ETFs will force investors to buy physical silver and drive prices higher. Silver like gold has strong fundamentals comparing to other commodities and a stable outlook due to rising demand and limited supply silver is better than gold.
Moreover, the potential for price appreciation toward the highs of the 1980s or 2010s is nearly 100%. By comparison, gold reached all-time highs last year.
Historically, this is a very high value. Just because something is cheap, like silver (compared to gold), doesn’t mean it can’t get even cheaper.
Nevertheless, this ratio should cool down in the medium term. So that silver is likely to make up for the valuation shortfall.
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You have already noticed that Wall Street Bets investors (WSB) target stocks particularly, which have a considerable portion of the outstanding shares are sold short.
According to the stock market portal Seeking Alpha, a WSB post circulated on Twitter calling the silver market “one of the most manipulated in the world.”
Thus, there is a risk that the short sellers will have to buy back the stock when their individual loss threshold is reached to reinforce the previously deliberately forced rise.