Silver has been used as money for centuries. Like gold, silver has intrinsic value and is a great store of value and it has sustained its value for over 4 centuries. Any private investor who is conscious of the commodities market and wants to diversify their portfolio to get the most returns, silver is a good investment.

Why should you buy silver?

When you buy silver you are acquiring a rare commodity that is finite and can therefore be resold and recycled. Silver coins and bullion bars are easy to buy. You can choose coins for their portability or fractional bars that you can store in your house of in a high security vault.

Silver and gold are dependable investments with a value that hasn’t waned over the years. In 2005, the price of silver was $7, but in 15 years, the price doubled. Silver has proven over and over again that it can be a significant asset to won. It has steadily risen by over 8% every years.

1. Silver is a valuable Asset: goldand silver are dependable investments with an intrinsic value that has never waned over the centuries. Over the last 15 years, the price of silver has more than doubled from a low of $7 per ounce in 2005to its current level of $17 per ounce. As a prized asset, silver has proven time and again that it can deliver significant value for investors.
2. Silver as a Hedge: Like gold, the value of silver does not have the counter party risk that is found in investments like stocks and bonds. Its value does not depend on blind faith like most fiat currencies.

It tends to have an opposite correlation to other assets, meaning that investors are protected when shares, bonds and property lose their value. An asset like that can act as a hedge from risk posed by economic currencies, war, inflation, stagflation and other risks. The silver price rises when there is uncertainty in the economy. For instance when the debt crisis unfolded in Europe in 2011, the price of silver jumped to about $50 an ounce. With the rising problems in the financial system, silver has continued to play a significant part as a hedge.

3. Inflation: Inflation affects the power of paper currencies. When currency is in crisis because of inflation, even money saved in the bank can lose its value. You should buy silver because it can protect you from inflation because its value does not depend on local currencies.
4. Geopolitical Risks: When you invest in property, stocks or keep your money in the bank, your investments are affected by the decisions that politicians make. If you want to save you assets from the reckless choices that politicians make, you should invest part of your wealth by buying precious metals like gold and silver.

Hyperinflation: During the 2008 financial crisis, governments decided to solve the problem by printing more currency. This cheap money triggers economic bubbles or booms in other markets like the property market, bonds and stocks. When central banks try to reverse their quantitative easing policy, the bubble created will surely burst. Silver tends to make gains when quantitative easing correction happens.