Investing in precious metals is a smart retirement strategy. When you’re investing in your retirement, you need to know that there’s something waiting for you at the end of your career. Investing in equities is often the fastest way to grow your money, but it’s also the riskiest. Your retirement savings are exposed to market ups and downs. Events like the 2008 stock market crash can erase years of progress and eliminate your nest egg. Even one bad week can reverse a year of progress, as investors saw in 2018 when losses in December wiped a year off of everyone’s savings.
As you plan your retirement, you need to think about making investments that will appreciate in value and survive the ups and downs of the market. The only asset class that can deliver that kind of safety and growth is precious metals like silver and gold. They are recession-proof and excellent hedges against inflation.
As negative real interest rates eat away at other conservative assets people rely on for their retirements, you need an alternative like gold and silver that will preserve your buying power into your retirement years.
While gold is often held up as the standard precious metal investors should buy, silver is an often-overlooked investment vehicle. But there are many ways silver can help your retirement savings.
#1 The Gold-Silver Ratio
The gold-silver ratio can seem arcane, but for gold bugs and precious metal enthusiasts, it’s a valuable tool for anticipating gains and deciding whether to invest in silver or gold. The gold-silver ratio is used to compare the value of gold and silver, i.e., how many ounces of silver is worth the same as an ounce of gold.
The gold-silver ratio is historically imbalanced. Silver is cheap compared to gold, and it has a much higher upside than gold. You could see appreciable gains by trading the gold-silver ratio. Keep in mind that silver and gold tend to flow in the same direction, while silver prices gain and fall more rapidly than gold.
#2 Silver Prices Are Low
Silver today is trading at less than half its all-time high price, which has investors scooping up the precious metal at a bargain. Low prices have caused a cut-back in production as miners retreat from the less profitable metal. However, industrial demand for silver continues to grow, causing a silver supply shortage that’s slowly eating away at global reserves.
You can get the live silver price by keeping an eye on online silver shops. A silver price correction in the near future could make a major difference for silver investors.
#3 Silver Beats Inflation
Like gold, silver is an inflation hedge. The long-term price trends of silver are a better way to preserve purchasing power than cash or securities that match inflation. As a general rule, an ounce of silver today affords you the same purchasing power it did decades ago. That’s the guarantee that part of your retirement portfolio needs.
Silver has staying power. Protect your wealth by investing in silver for your retirement.