If you’ve been following our advice to pay yourself first each month for a while, chances are you’ve managed to put together some savings. But with the acute inflation that we have in these times, it is a very good idea to invest your savings to get a return on them.
In our article on how to invest in the stock market, you can see that we advocate having an investment portfolio that is as diversified as possible gold ira companies reviews.
Many investment gurus recommend investing in precious metals like silver. In this article we show you why at ovb we do not recommend investing in silver.
History of investing in silver
Silver has been traded since 2,500 BC. The Egyptians already traded with it and so did the Phoenicians in the Mediterranean.
For a time it was used mostly to make coins, in fact silver gave its name to the pound sterling and the dollar.
After its monetary use, since the industrial revolution, silver began to be used in the manufacture of a wide variety of industrial objects and jewelry. Demand for silver in the future is expected to continue to grow as demand for silver for use in manufacturing electronics also grows.
Why not invest in silver?
Silver is often compared to gold when it comes to investing, but the truth is that even though they are both precious metals, gold is around 90 times more expensive than silver and silver prices tend to fluctuate much more than gold. In fact, in 2011 there was a big bubble with a consequent drop in the price of silver from which it has not recovered since.
Investments in silver are characterized by large fluctuations and it is an asset that interests those who seek to speculate instead of investing.
If you invest in this precious metal, you have to be willing to put up with fluctuations and losses. They are too volatile assets and that is why at OVB we do not work with them.
For your information, there are three fundamental ways to invest in silver:
Invest in physical silver
It is simply about buying silver bars with a stamp of authenticity. It’s similar to buying gold bars except that since it’s 90 times cheaper than gold, the same value of silver takes up 90 times as much, so it will incur a huge added storage cost.
Invest in silver stocks
There is also the option of investing in shares in companies that are engaged in silver mining. Although you should know that there are not many companies that are dedicated exclusively to this activity because a large part of the silver extraction comes from the residues of the extraction of other minerals and stones.
Silver ETFs
There are several ETFs in the silver market. ETFs (Exchange Traded Funds) are index funds that emulate the price of amalgamations of assets. The drawback of these assets is that they are bought and sold just like stocks, so they are taxed in the same way as the purchase and sale of these. If you are interested in investing in more stable sectors through ETFs, you can read more in our article on investing in ETFs.