While some people refer to silver as “poor man’s gold,” due to its much lower value as compared to gold, other experts agree that silver is the best investment you can make, especially for the long-term, because there is more upside to silver than gold. Since 2003, silver has seen a roughly 600% increase, and some are forecasting the price to double in the next few years, though no one can be certain of that claim. In any case, here are a few other reasons to invest in silver now as a long-term investment.
More silver is bought and consumed than is mined each year, meaning that demand is outpacing supply. Eventually, this will drive the price and value much higher.
Silver is the most conductive metal on the planet, with over 10,000 industrial and commercial uses. In other words, it is not just pretty to look at; it has practical value as well. And technology continues to embrace silver. In 2010, about 487 million ounces of silver were used commercially, and that number is expected to grow to about 666 million ounces in 2016.
Investors are catching on and are able to buy silver from anywhere in the world, and supply is dwindling. Now that people can invest in silver through Exchange Traded Funds, they have an investment vehicle without having to actually buy physical silver coins or bars. Thus, the supply is going faster than before.
Because of its unique physical properties, it is highly unlikely that a silver substitute will ever be produced. It is nearly impossible to duplicate, so if the world’s supply of available silver eventually runs out, your supply of silver won’t be devalued by imitation or faux silver produced in a lab, as the imitation silver will not share the same qualities and characteristics as authentic silver. (Though to be fair, the same can be said about gold).
If you own silver, especially silver that you possess physically, that silver’s value will always be retained. It will never go to zero. The same is not true for other investments like real estate, stocks, or bonds; these always have the potential to crash or become devalued, either quickly or over time.
The market for gold is over 60 times the size of the market for silver. Thus, silver is rarer, despite its much lower price than gold.
Lastly, and simply, silver is a much cheaper investment than gold, making it more accessible to you and me.