Appreciating the Power of Silver in the Precious Metals Market

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When it comes to the precious metals market, the common belief is that gold is much more valuable than silver. This misconception has actually been promoted over the years primarily because of the overall understanding of gold coming before silver when it comes to ranking, such as when passing out medals for a sports event. Contrary to that belief, however, studies have proven over the years that silver is actually increasing in value as an investment option when compared to gold and other precious metals for a number of different reasons.

Meeting the High Industrial Demand
One major reason why silver has become such a powerful investment choice within the precious metals market is because of its industrial demand on a global scale. Throughout the history of mankind, silver was used to make tools and a wide variety of other goods in many different countries. Nothing has changed about that in today’s industrial market, even with a struggling economy that is still trying to recover from a recent recession.

Silver is an amazing conductor and reflector that has been proven to stay strong and malleable at the same time. The world of high-end electronics depends on this specific metal in order to continue developing high-quality products. There have been quite a few progressive advancements over the years in the field of medicine that have been based on technology that was developed with silver as a primary material. Nearly 490 million ounces of silver were used for industrial purposes in 2011, which covers close to half of the demand for silver in the precious metals market overall.

Analyzing the Monetary Value
Another myth of the past that has affected the average person’s attitude towards silver has been that gold is much more valuable than silver monetarily as well. Recent studies over the past two decades have clearly proven that this close race of value may easily shift in favor of silver in the years to come.

For instance, the average price for silver within the precious metals market in 2003 was $6.65 per ounce (in US dollars). However, that number skyrocketed to $29.68 per ounce in 2012. Throughout that nine-year timeline, there was no considerable fluctuation in value; the amount steadily increased more and more with each passing year.

When it comes to availability in general, the supply of gold and silver is fairly consistent across the board within the precious metals market today. Keep in mind that there are many other precious metals that are more valuable than gold and silver combined. From an investment perspective, though, an investor’s money might be able to go much farther with silver than many of those other metals.

A Solid Complement for Diverse Portfolios
Even though the value of silver is projected to increase in the years to come, this does not mean that an investor should focus exclusively on putting his or her money towards this metal. As mentioned earlier, there is a wide variety of other valuable metals that should be considered within the precious metals market as well. Studies have proven that diversifying an investment portfolio by exploring multiple options is the best approach to take in order to pave the way of financial success in the future.

When it comes to building a solid portfolio that is going to generate long-lasting results and profitable returns in the future, take the time to explore all of the available options. Do not rush to make decisions based solely on current values, but focus more on investments that have future growth potential. Since the value of silver is projected to increase over time within the precious metals market, it would make a solid addition to any investment portfolio.