Many people who have been looking for new areas in which to invest have turned to silver coins. Due to its slightly safer nature, though, some investors choose to make silver a part of a larger portfolio. Although you won’t earn interest on that part of your portfolio over the years, it can be useful as a hedge against inflation. The fact that they tend to do better when other stocks are failing can help balance out your portfolio.
It’s used in nearly every major industry, from electronics and medical applications to batteries and solar panels. Silver is everywhere, whether you see it or not. As Mike says in his book , Of all the elements, silver is the indispensable metal. It is the most electrically conductive, thermally conductive, and reflective. Modern life, as we know it, would not exist without silver.” Due to these rare characteristics, the number of industrial applications for silver has skyrocketed. In fact, industry now gobbles up more than half of all silver demand.
You’ll see hedging as a strategy used by professional brokers as they help you build your portfolio. They’ll look at safer investments to offset the high-risk items they choose. The theory is that, if things go wrong, you’ll have some items in your portfolio that may be gaining or holding their value to help reduce your losses.
Whether you are new to bullion investment or not, it is important to understand the differences between the two precious metals – gold and silver, and the two forms they are sold in – bars and coins. Before making your decision it is advisable that you conduct some research, and weigh up the pros and cons. There is no definitive right or wrong answer, choosing what to invest in is down to the circumstances of the individual investor.
A popular gold-tracking ETF is SPDR Gold Shares (GLD) Meanwhile, a well-known silver-tracking ETF is the iShares Silver Trust (SLV) Many online brokers will allow you to buy and sell these ETFs when the stock market is open. Just be sure to learn about any commissions and fees associated with buying and selling these ETFs before investing in them.