The price of silver has reached its peak in 2016, but this precious metal has remained one of the best investment opportunities ever since. Those who are looking to hedge their investments should look into silver as a way to do so in 2018.
Forecasts that have been made about the price of silver so far have proven to be well-founded, which makes this market an interesting venture for those who are looking for a steady and predictable source of income.
The difficulty with forecasting
It’s not always easy to predict the price of precious metals and silver and in particular. These prices are usually rather stagnant because there’s a limited amount of precious metals available and there’s not that much that can change about it. However, the interest in precious metals rises when there’s economic uncertainty and that’s what you should follow when deciding whether to invest in silver.
There’s an expected crash coming this year and it will affect the demand and therefore the price of silver. It won’t be as intense as the one from 2008, but it will be noticeable on the precious metals market.
Geopolitical tensions
The interest in purchasing silver usually rises when there are political tensions. This also means that its price is rising because of the higher demand. Therefore, it’s best to purchase silver before tensions of that nature get out of hand and traditional international finances become strained by them.
At this point, there are a few conflicts to pay attention to and to decide on purchasing silver based on them. The wars in the Middle East might affect the whole world. The same goes for the nuclear tensions in North Korea, as well as the potential tariff war between NATO allies.
A hedge investment
When it comes to small investors, the biggest advantage of buying silver bullion is the fact that it can be used as a hedge investment. Buying stocks, foreign currencies or digital currency comes with a lot of risks. The value of these investments changes rather quickly and that can be lucrative and thrilling but it can also be dangerous.
Investing in silver can help with this, because its value rarely changes dramatically and you can use it as a hedge that will generate a steady income over the years.
The industry
There are industries that need silver for day to day business. This is another reason that makes silver a great investment, because you can sell it quickly if you need extra cash for solving an unexpected issue or making a quick investment.
For instance, the jewelry industry always needs more silver and you can sell your billions in bulk to a few jewelry companies and let them bid for the price. The tech industry also needs a lot of precious materials for a variety of innovations. In the end, the use of silver in medicine is also increasing and can be a source of income.
Durability
These days, most savings are tied to bank accounts and sometimes even to abstract digital markets, seeing how cryptocurrencies are on the rise. This has its advantages because it makes transaction instantaneous and safe. However, there’s also a risk involved in it because the problems with technology can cause a lot of financial issues as well.
Silver savings don’t have this problem because they are durable and versatile. Depending on the form they take, you can also move them around rather easily, which is important if you’re in a hurry and there’s some sort of emergency.
Who is investing?
In the end, the biggest change in making investments in silver, this year, comes from the investors themselves, not the market. But who buys silver? Investing in precious metals used to be reserved only for those who have a deep understanding of the market and a lot of money to spend.
This is no longer the case, as small and medium-size investors are on the rise. Middle-class families now have complex portfolios and now tend to use silver investments as a hedge or a savings plan in some case.
Silver is one of the smartest purchases you can make in 2018. It’s a safe long-term investment and its price will grow.