Thanks to its growing demand as an industrial metal, silver’s future looks shiny. All the reasons to invest in gold also apply to silver, and often silver’s value is magnified compared to gold’s.
GROWING DEMAND AS AN INDUSTRIAL METAL
The difference between silver and other precious metals is its growing demand as an industrial metal. Each year, more and more uses are discovered for silver’s unique chemical properties, ranging from biotech to electronics, and there is a growing concern that in less than 15 years, there will be no silver left.
There’s simply not enough silver to meet this growing demand, which makes physical silver an attractive investment.
After silver is used within industries, like medicine or photography, it becomes useless. Consequentially, the market is starting to realise that when silver supply falls to zero, this metal will become the most precious of them all.
AFFORDABLE AND UNDERVALUED INVESTMENT
It has always taken 12 ounces of silver to buy 1 ounce of gold (12:1) – a ratio that has gone back hundreds of years. The current ratio is 75:1 implying that the silver price is massively undervalued.
Many analysts and experts believe that silver should be trading at five times the amount it’s trading at at the moment. JP Morgan, amongst others, bought £300m of physical silver in 2015 and now the central banks are following suit.
With the price of silver is at a five and a half year low, you can now buy 65% more silver for your money than in 2011, making it a strong buying opportunity.
BENEFITS OF SILVER
Unlike shares or banking, there is no requirement to register ownership of silver. Physical silver is one of the only forms of private investment left today.
INHERITANCE & LEGACY
Physical silver can be tax efficient when leaving your wealth to loved ones.
INSURANCE AGAINST INFLATION
In times of inflation, silver’s value tends to increase in line with other products and commodities.
TO DIVERSIFY YOUR PORTFOLIO
Silver tends to increase when other commonly held assets fall in value, which is why experts recommend investing in precious metals as part of a diverse portfolio.
CAPITAL GROWTH AND RETURNS
Silver remains one of the best performing UK assets of the 21st century, rising 300% since 1999, against the FTSE of 173% and a housing market rise of 231%.
Individuals that purchase physical silver within the EU are required to pay VAT. However The Pure Gold Company is able to supply physical silver free from VAT and Capital Gains Tax.
SITS OUTSIDE THE BANKING SYSTEM
Individuals who buy silver are essentially removing it from the banking system and any counterparty risks associated with it.
UNIVERSAL CURRENCY, EASY TO LIQUIDATE
Physical silver is recognised and sought after all over the world and as such can be exchanged for global currency, goods or services and can be easily liquidated.
The global supply of silver is rapidly running out – there isn’t enough to deliver on the silver in existence.