Top Reasons to Invest in Silver in 2024

by William Powell Writer/Educator

Top Reasons to Invest in Silver in 2024

Photo by Scottsdale Mint on Unsplash

Whether you’re brand new to investing, just getting started, or a seasoned pro, brushing up on your investing skills could lead to a money-making year. Many investors have assets they swear by purchasing. One of those assets falls under the precious metal category: silver.

Besides finding valuable investment opportunities, investors must also know when to invest to maximize their overall profits. With that in mind, it appears that silver could be on track for a great year. Discover the reasons why 2024 is a great time to invest in silver.

1. A Lower-Cost Investment

Many investors are asking themselves: “Should I buy silver?” If you’re an investor with a somewhat limited budget, the answer could be a resounding yes.

The value of investments varies. However, since the mid-2000s, the price of silver has remained around $20 to $30 per ounce. Compare that low price to an ounce of gold. Currently, just an ounce of gold costs several thousand dollars. The price of silver compared to the price of gold is like the cost of a movie ticket compared to buying a used car.

Silver is a low-cost investment, especially compared to shares of Tesla or a single Bitcoin. Therefore, purchasing this metal is a great way for many individuals to get their foot in the door of investing.

2. Great Asset When Inflation Rises

Chances are, whether buying a bag of potato chips or new furniture, you’ve noticed higher prices during recent shopping trips. Currently, the inflation rate hovers around 3%. That might not sound like much. However, the United States continues witnessing rising prices, even after small national inflation rate jumps.

When inflation rates rise, many savvy investors flock to metal asset types such as gold and silver. As more investors buy up the limited supply of silver, this scenario typically leads to rising silver prices.

Metals such as silver and gold have histories of being indicators of wealth and value for centuries. Because of that, these precious metals have immense intrinsic value. Intrinsic value is something’s perceived worth. While this factor may not seem like much, inherent value is more than enough to keep assets valuable.

3. Wide Range of Industrial Uses

Manufacturing companies worldwide depend on silver for its many uses. Businesses rely on silver when making many products, some of which include:

Dental alloys
Automobiles
Jewelry
Coins
Electronics
Tableware

But what do silver’s many uses have to do with it being a potentially wise investment? Because silver is popular for manufacturing purposes, it remains in demand among companies in many industries. Unless a reliable replacement for silver debuts, this material’s use shows no signs of slowing down in popularity.

4. Silver’s Finite Supply

You might recall the recent rise in popularity of the Dogecoin cryptocurrency. The inspiration for this altcoin was the popular Doge meme that rose to popularity in 2013. While Dogecoin has become more well-known, one of its crucial issues is its massive supply of coins. The more popular Bitcoin has a limited supply and trades in the five-figure range.

An essential factor to consider in the realm of investing is an asset or commodity’s supply. Like Bitcoin, there’s also a limited supply of silver available to investors. That limited supply is another reason why silver continues to hold its value decade after decade.

Typically, the global silver supply comes from professional miners gathering gold, zinc, and other metals. However, with the world’s few current silver mines, it’s becoming quite difficult for silver’s global supply to increase.

5. A More Private Investment

People understandably want the details of their lives to stay private, especially when it involves their money and investments. If you want the utmost privacy when investing, buying shares of company stock might not be ideal. This investment option requires registered ownership.

Silver doesn’t require any registrations, making it one of very few truly private investment options.

6. Having a Diversified Portfolio

In nearly every book or video on how to invest, you’ll almost always learn about diversifying your portfolio. A diverse portfolio typically contains assets from various categories. Examples of switching up your portfolio through diversification can mean purchasing stocks, bonds, metals, cryptocurrency, and other asset types.

A diversified portfolio provides peace of mind to investors, especially when certain assets plummet in value due to world conflicts or ever-rising inflation. Having a diversified portfolio is also helpful when sudden world events sink stocks, bonds, and other asset types.

However, diversification by itself can’t guarantee positive yields. But, you may lower your risk of diversification gone wrong by diversifying through purchasing silver. While nothing is set in stone, the other indicators in this article point to silver having a fantastic year.

The Future Shines Bright with Silver

Silver remains a time-tested metal for everyone, from new investors to experts. Give your investments some time to prove their worth. By diversifying your portfolio in 2024, you can hopefully enjoy nothing but success and profits.