Silver Investment for Beginners: Why Silver Accentuates Your Portfolio

At Global Monetary Reserve, we receive a lot of questions about silver versus gold, particularly because of how high profile it is and because many people don’t understand why they would choose silver over gold or other alternative investments.  The question shouldn’t be why you would choose silver over, it’s why you should choose silver along with gold, platinum, rare coins, and other investments.

One of the biggest reasons is ease of entry into the market: where gold has sat north of $1300, platinum has sailed above $1400, and the stock market has shot up, pushing many companies out of contention for stock ownership.  On the other side of that, silver has stayed in the $20s for most of 2013 – a major reason why so many beginning investors get into silver first and why so many people consider silver to be integral to a diversified portfolio: the ease of ownership means that it isn’t outside of anyone’s price range and that liquidation for profit is easy.

Another major point is that silver has gone up in value 8 out of the last 10 years – which means that even though the price is low, the potential for profit is extremely high.  So high, in fact, that in 7 out of the last 10 years, silver posted double digit profits – 5 of those 7 years, that was 25% or more.  Keep in mind that if the rest of the economy had performed as well as silver has, we would have blown through a recovery and moved on to a whole new era of prosperity.

Another reason to look at silver is that unlike gold, silver also has significant industrial usage; this serves to both bolster the buying market and to prevent dips: the uses for the metal are numerous and well documented, which means that there will always be a certain amount of the precious metal that is going to leave the market, increasing scarcity during certain periods.  This can also lead to increased volatility, which may be perceived as a negative to many looking for stability in their day to day trading, but can mean huge positive gains to those who are willing to hold the metal for multiple years (remember, 7 out of 10 years silver was up!).

One of the other major points is diversification, which was covered in this blog post.  Ultimately, silver is an excellent choice for diversifying a portfolio because it can reinforce your other precious metals investments and because it has enough movement and upwards mobility to be potentially turn a huge profit in the long term.  If you had bought silver in 2003, you’d have made a 500% return – something that can’t be claimed outside of the precious metals markets.  But the only way to take advantage of the huge profit levels is to work with an expert who can show you what your next move should be – this is why it is so important to call Global Monetary Reserve at 877.795.9585 today and speak with a personal account representative who can help you determine the best way to enter and profit on the market’s volatility