Should I buy silver as well as gold bullion?

 

It’s not uncommon for investors to put in a lot of time researching whether they should invest in gold or invest in silver.  For the savvy investor, the answer is both!

Gold is a great investment and can act as an insurance policy against uncertain times, while silver is more of a speculative investment.

Both are popular and common investment assets, but silver offers a very different challenge to gold.  A challenge that can generate substantial profits despite the VAT costs.  These differences are why an investor should consider owning both as a part of their portfolio.

Silver is a speculative investment

The price of silver is far more volatile than gold, which is why it doesn’t have the same level of security.  Silver is, however, also a physical asset which means, like gold, it will always have an intrinsic value and can not be simply devalued by inflation.

The volatility in the price actually presents an opportunity for investors to buy and sell over shorter timelines in order to make a profit.  Hence it is more of a speculative investment.

The price can move quickly, and significantly, so applying caution and paying close attention to the financial sector will be key to taking advantage of the opportunities that present.

Historically, silver has proved to be a very good investment.  In the three years between 2008 and 2011, for example, the price of silver rose by 233%.  That is dramatically more than stocks and property, and more than gold too.

More recently, in 2019, silver saw a gain of 28.9%, again outperforming gold in dollars.  The opportunities are there to be taken advantage of.

The price of silver is currently low compared with the highs of 2011.  All markets tend to fluctuate from a bearish market (prices moving down) to a bullish market (prices moving up) and commodities like silver are no different.

Usually, it is only a matter of time before the market decides the price is too high and stops buying, or too low and starts buying.

Disclaimer: This is not financial advice.