When speaking to many high level investors about precious metals even a few short years ago, the general consensus seemed to be gold or nothing. Gold is certainly an excellent metal, and for those who choose to take physical possession of their assets, it offers considerably more value per ounce. With that said, however, it has always been important to diversify your assets. While this once meant combining stocks and real estate with gold holdings, the current economy has led many to instead collect multiple metals, such as gold and silver.
Silver was once considered by many to be an inferior metal to gold and other precious metals. In terms of value, it still commands the lowest price per ounce, but it is also a metal that is in very high demand. Premiums for the metal are certainly on the rise, and many analysts predict that the low prices we have all become accustomed to will soon be a thing of the past. Unlike gold, which is traditionally held and traded, a great deal of the world’s silver supply is actually consumed in various industries, creating an ever-diminishing amount of the metal.
A rapidly decreasing supply of a metal that was already quite rare certainly points to the potential for significant price increases in the future. The price of silver in recent months alone has made some pretty drastic jumps, and most investment strategists believe that this is only the tip of the iceberg. For many investors, diversifying holdings to include both gold and silver has become a popular strategy. Methods of silver collecting vary from junk and bullion coins to large silver bars, but the most noticeable fact is that people of all income levels have begun to invest.
The increased demand for silver will certainly help to increase its value over time, but it may well be its current affordability that makes the largest impact. Many people with lower incomes have long thought it impossible to build a precious metal investment. With silver so affordable and with profit potential so high, the demand for the metal is higher than before. Unlike gold, which is largely purchased by those with a great deal of capital, silver can be purchased by almost anyone. This means that it will not take nearly as long for the supply to reach drastic lows, and the price of the metal may well be changed forever.