Humans have been investing in silver for decades, with the precious metal serving as a valuable alternative to traditional stock trading. Like gold, silver is a safe haven asset. During 2020, as more alternative investment options open up, many are wondering if silver is still a safe investment.
In this article, we’re going to answer just that.
The Current State of Silver.
Silver hit an eleven-year low this year. However, in March 2020, the metal reached $11.74 an ounce.
Since then, it had recovered to some degree, even hitting a seven-year high of $30 an ounce this August. From there, the asset ranged from the low to high $20’s, where it still remains as of this writing.
However, despite these uncertainties, experts believe the future of silver is a positive one.
The Future of Silver.
Analysts at the Metals Focus research firm claim silver’s price should rise in the new year, as said in a report from late October. The group expects it to break “well above $30 an ounce,” according to the Kitco precious metals organization.
That said, investors shouldn’t expect a purely positive comeback. Silver will have some volatility attached to its price rise. This is largely due to the world’s economic situation.
Of course, this is speculation, and things can change fast, but knowing experts are positive about silver is good for potential investors.
How to Purchase Silver.
Now that you know if silver is a safe investment come 2021, you might want to know how to buy silver online.
There are various exchanges online where you can buy silver in the form of coins or bullion. While you need to pay some additional fees for this, you can also have them professionally stored and held. Or, depending on the exchange, you can have the silver shipped to you.
Otherwise, you can buy silver online utilizing cryptocurrency. There are various coins you can purchase that represent a stake in silver. This is the only way to buy fractional amounts of silver, saving you money if you can’t afford too much.
Most silver-backed cryptocurrencies also provide storage, removing the extra fees necessary with traditional purchases. That bullion is stored in high-tech vaults, and some companies even provide 24/7 camera footage to prove their backing.
Also, silver-backed stablecoins allow you to buy the asset anonymously. With traditional silver, you need to reveal your identity to purchase anything. However, you can buy a stablecoin without revealing anything about yourself.
Of course, physical silver is probably the go-to for traditionalists. However, technologically inclined users may want to utilize silver-backed cryptocurrencies. The benefits outweigh the cons in various ways. That, and with projects like Silvercoin, you can even redeem your crypto for physical bullion. It’s worth noting, though, that you’ll have to reveal your identity to do this. Otherwise, the group will not ship you your silver.
Finally, there are also ETFs and stocks, which are a way to buy silver. This way, you can invest in the asset without physically buying it.
The most popular ETFs are the iShares Silver Trust and the Sprott Physical Silver Trust. Many investors appreciate the latter, as it allows them to redeem shares for physical bullion.
Overall, it appears that silver is a reasonably safe investment to make in 2021. Despite cryptocurrencies barreling their way into the investment space, traditional assets like silver are holding their own. In fact, it looks like they’ll perform quite well in the years to come.