Demand for silver is on the rise, which makes this precious metal one to consider if you’re looking to buy because of its inherent and consistent value. In addition to increased demand, there are some other factors to take into consideration as well as you explore the investment possibilities with silver.
If you’re weighing your options for 2022 and considering investing in silver as part of your strategy, make sure to work with a reputable precious metals dealer, such as First National Bullion. San Diego collectors should keep reading to learn what’s going on with silver in 2022 so they can decide if they’re ready to make a purchase.
There Is Increased Demand for a “Safe” Investment
According to Capital.com, Russia’s invasion of Ukraine has led to an increased demand for safe investments. This is generally the same pattern that makes gold a popular choice during times of economic uncertainty. If this is what you prefer to include in your investment portfolio for added peace of mind and financial security, buying silver now can help you achieve this goal.
Silver Has Had Its Ups & Downs in 2022
So far in 2022, silver has had its ups and downs as far as spot prices go. In fact, it was the worst performer among commonly traded and purchased precious metals in January of this year, according to Capital.com. However, the Russian invasion of Ukraine, coupled with a monetary tightening schedule rolled out by the U.S. Federal Reserve, has caused silver spot prices to rise once again.
You can still strategically buy silver even when there’s this kind of up-and-down price pattern. The key with any precious metals is to pay attention to spot prices to get a feel for when to make a purchase in a way that fits your investment strategy and budget.
Global Demand for Silver Is Expected to Rise
In part because of the circumstances mentioned above, the Silver Institute predicts demand for this precious metal will steadily rise throughout 2022. This same source notes demand for silver is also driven by its many industrial uses, both in traditional as well as green technologies and industries.
Demand for silver is also expected to increase in the automotive and 5G telecom sectors. Additionally, there are predictions for other demand spikes related to silver as 2022 continues, with notable ones including:
• A predicted 13 percent increase in demand for silver coins and bars
• An expected 11 percent jump in demand for silver-based jewelry
• A possible 21 percent boost in demand for silverware
This higher demand for silver has the potential to be good for buyers. In other words, if you strategically purchase silver when prices dip a bit, the increased demand means you could be able to sell it later for a profit. Buying physical silver and holding on to it is another way to take advantage of the higher demand. In this instance, you’ll have the added benefit of knowing there’s likely to be a demand for what you own for the foreseeable future.
Mine Production Is Also Going Up
Another reason 2022 is generally considered a good time to buy silver is because there’s more of it available. According to the Silver Institute, mine production is expected to ramp up significantly in 2022 to meet demand for this precious metal. With any type of silver investing, it’s recommended you do your own research or work with an investment professional to determine how silver can work for your goals and objectives.
When they’re looking for the best place to buy silver bullion, San Diego precious metals collectors reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can be a valuable part of your investment portfolio. Give one of our experienced dealers a call today at (858) 304-7580.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.