Precious metals are finite. In bearish markets, these metals continue to hold their value and safeguard your portfolio against inflation.
You could choose to buy silver bullion and coins and include a hard asset in your portfolio, adding a layer of protection against issues like government intervention or cybercrimes.
Silver is Comparatively Cheaper to Invest In
As a new investor starting by adding gold to your portfolio may seem like an overwhelming and risky move. Precious metals like gold, platinum are comparatively expensive to invest in.
On the other hand, silver is the precious metal that will help expand your investment account, provide a layer of protection, add value, and be cheaper to invest in.
Demand for Silver in the Industrial Market
Silver is in high demand in pretty much every industrial sector out there.
Right from your mobile phones, other electronics to solar panels, silver is being used in every small and big product. Industrial demand is a factor that can impact the cost of silver.
According to a report, global silver demand is expected to reach 1.03 billion ounces in 2021, recovering from the slump of 2020.
Thus, you could buy silver bullion and leverage the current situation in the industrial sector.
Silver will Hold its Value in a Bearish Market
Silver bullion is a hard asset that could very well be used as money. It is a physical asset mined from the core of the earth and not a paper currency that one can print on demand.
Precious metals tend to perform better in bearish markets than other investment products. One cannot reduce the value of precious metals by creating silver out of thin air or government intervention.
It can Diversify Your Investment Account
From an investment standpoint, it is smart to keep your money invested across multiple products. You going all-in on stocks may not be a wise option. What happens in case of a market crash? You could choose to stand to lose all your investment in this scenario.
Thus, it is best to put your money on different investment avenues. Precious metals like silver have inherent security attached to them, which you should leverage to spread the risk to your portfolio evenly.
Could Prove to Be a Safeguard in the Geopolitical Scenario
Countries across the world are recovering from the aftermath of COVID. However, with the geopolitical situation being tense, an economic slowdown is a byproduct that the world could witness.
Stock markets could slow down, and real estate may see a downward trend. But it is precious metals like silver that could offer your account a hedge in these uncertain times.
Invest in the Silver Bullion Today
Buying precious metals like silver is an excellent choice to make. With their limited supplies and growing industrial demand, the next few years could increase silver prices.
However, owing to the size and lower cost of the precious metal, you could buy silver bullion at the start of your investment journey itself. Always look for investment-grade silver when purchasing precious metals in Australia.