Compelling reasons to add physical silver to your investment portfolio
Rael Demby, CEO of The South African Gold Coin Exchange and The Scoin Shop, explains a fundamental fact that silver is real money. “Silver may not be part of our currency, but it is still money. Silver, along with gold, is the ultimate form of money because you can’t just print more of it whenever you want to.”
Part of any wealth-preservation decision at the moment will include a review of Central Banks’ response to the 2020 Covid19 pandemic, which has resulted in massive quantitative easing, causing global inflationary concerns. Demby adds “ More and more buyers are learning about silver and buying bullion. People are coming to understand that silver has an inherent value that is constant and permanent. It provides default-proof protection in an investment portfolio, which other paper assets like shares, cash, and bonds cannot provide, and the liquidity of bullion is virtually unmatched by any other assets.”
Adding weight to the argument for silver is that it is more affordable. Investors can buy silver at 1/70th the price of gold (per oz). Along with gold, silver is a hard asset and can offer security in a time of uncertainty.Â
Silver is more attainable for the average investor and is a starting point to holding some precious metals. Another positive for the silver market is that industrial demand is growing. Silver is used in nearly every major industry, from electronics and medical applications to batteries and solar panels. “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 ” comments Demby.
Approximately 50% of the annual silver supply is used in industry, and as commercial applications for silver continue to expand, the demand should remain robust.
Silver is a very small market which means even limited buying and selling can influence the price to a much greater degree than other assets (including gold). In a Bear market, this greater volatility results in silver falling more than gold. But in Bull markets, silver can climb much further and faster than gold.
Since the financial crisis of 2008, the two largest sovereign government silver bullion coin mints (the U.S. Mint and the Royal Canadian Mint ) have consistently reported strong sales.
The Scoin Shop has seen a surge in the buying of physical silver over the last month with purchasers particularly interested in collectable and unique silver coins like the D-DAY 75th Anniversary 1 Kilogram Silver Coin. This massive 1kg Silver coin comes from the Canadian Mint and has a limited mintage of only 400 pieces worldwide, making it a desirable addition for any coin enthusiast. “We have seen a sudden interest in demand for pieces like Mint Of Norway’s Silver Proof 1kg Robben Island Medallion too. Since 1972 we have cultivated exclusive relationships with many of the finest mints from all over the world. These associations mean we can offer our clients exclusive silver coins which are in global demand right now. We have a wide variety of silver collectables and bullion, and we are constantly looking for more”.
Add up all the reasons and silver might be the buying opportunity of the decade, especially if you are a keen coin collector and are looking to add something special to your numismatic collection.