Silver is a safe haven asset that flourishes whenever the markets are down or going through some uncertain time. It is seen as a good investment choice to make for anyone looking to preserve their wealth in uncertain times. There are other metals that are regarded as safe haven investments, so what makes silver stand out from the rest?
Silver costs less than gold
Silver is cheaper than its sister gold. Its low price makes silver more accessible but also much more versatile. It is easier to sell silver than it is to sell gold. It is less challenging to divvy up an ounce of silver than gold making it more practical to keep than gold.
It offers higher returns than gold
The silver price Australia tends to move in tandem with the price of gold: when gold goes up so does the price of silver. Silver is worth 1/80th the price of gold, which means it is more affordable to buy but it also stands to make significant gains. The fact is: silver has consistently outperformed gold in bullish markets. Most savvy investors who invest in gold will typically hedge their bets more with silver bullion because there is always a reassurance that silver will always be valuable.
Silver has held its value over a long history
Silver has long been used as legal tender for centuries and that gives the precious metal a sense of stability. A lot of people have faith in silver because of its value throughout mankind’s history. It is the kind of investment that holds its value better than any fiat currency. The value of silver will persist regardless of how bad the future looks. How high has the silver price Australia gone throughout history? Before you answer such a question, you might want to look at how the precious metal is traded.
You need to know and understand the mechanics of the silver trade, the demand and supply of the metal and growing uses. This might help you to track the silver price in a more meaningful way. Silver is traded all over the world however the major trading markets are in London.
The most uncomplicated way to invest in silver is by purchasing physical silver bullion coins and bars. Physical silver bullion is sold at the spot market – this means that silver buyers pay a certain dollar amount for an ounce to take immediate delivery of their purchased price. The second way of investing in silver is through trading in the paper market via silver futures market. You can choose to hold the silver contract for long or short positions. There is one advantage of trading in silver this way – you can decide when you take ownership of your silver and you wouldn’t have to worry about storage and its security.
What was the highest the silver price reached?
The first highest s recorded silver price was $48 reached at the end of the 1970s. The price was pushed by the Hunts’ brothers. The wealthy stock traders wanted to corner the market by buying and taking delivery of physical silver and then buying silver futures. What they didn’t do with their future contracts is that they did not take physical delivery of the silver. It could have worked except they missed the margin call on March 27, 1980, the silver price plummeted to $11. It would take years for silver to regain its footing but it reached $14.67 in 2009 but because of the growing demand for the precious metal the price reached $47.94. However, with the growing demand from the ever-growing uses of the metal has contributed to the growth of the silver market. With the recent troubles like pandemics, wars, etc-many people are optimistic that this precious metal could breakthrough $30 and even $40 an ounce. For now, most speculators are optimistic about the price of silver in the world.