Does Silver Still Make a Good Investment?

There has been a lot of talks lately about investing in silver. This should come as no surprise to anyone who has any sense of how investing works, how the stock market works, and how the price of precious metals works in relation to the above. In general, the more volatile and the less stable or sure the stock market seems, the more and more people are going to invest in precious metals. At the end of the day, precious metals like gold and silver tend to be seen as relatively “safe” investments that hold their value very well and don’t decrease in value. This is largely due to the fact that when you invest in these commodities you’ll be investing in commodities that are inherently valuable, and whose value isn’t purely virtual or speculative- like most stocks in the market. Still, despite the fact that precious metals have proven themselves to be great investments over the last decade, a lot of people are still skeptical of them. Because of this skepticism, it’s common for someone to wonder if silver is still a good investment?

This is a little bit of a complicated question, and there isn’t really any simple one-word answer to it. There are a lot of other questions that need to be asked, like what’s your risk tolerance? What are you looking for in an investment? What are you looking to earn from investing in silver? These are all important questions to ask yourself because silver isn’t the best investment for everyone, though it makes an exceptional investment for a large segment of the population.

A lot of people are unsure about whether they should invest in silver because they are more interested in investing in gold. Investing in gold makes a little bit of sense as it tends to be even more stable of an investment than investing in silver. In general, silver is a more volatile commodity than gold. Silver is also much, much cheaper than gold in an ounce-by-ounce comparison, but this doesn’t really matter at all because it’s about your overall return on investment, and not the price of the commodity or investment than really matters at the end of the day. Most reasons to invest in gold over silver ultimately are pointless, pretty much all of them except the stability argument.

One thing to keep in mind with investing in silver is the fact that it doesn’t hold value quite as well as gold because its price is heavily influenced by how much of it is purchased by industry and by companies. This is because silver has a lot more practical utility than gold, and as such when its related industries are in decline silver itself will also be in decline- whereas gold remains stable because it is little more than a pure investment in value.

Overall, silver can make a great investment as long as you know what you are getting in to and what you are getting in to is what you want. If you want a relatively stable form of investment that doesn’t swing quite as wildly as the stock market yet still provides room for making a killing in trading than silver can be the perfect investment for you.