Some investors prefer to focus on stocks and similar assets because of the potential to earn regular dividends and other lucrative financial rewards. However, others prefer tangible assets, such as physical silver and other forms of bullion. Below, we take a look at whether silver is a better investment than stocks and what to keep in mind with both options.
If you decide silver is the right choice for you, make sure to work with a reputable precious metals dealer, such as First National Bullion. San Diego residents rely on our professionalism and expertise when they’re ready to invest in silver, gold, and other precious metals.
Stocks in general tend to do well as a long-term investment even when there are ups and downs affecting the market. Getting a decent return on your investments with stocks largely depends on factors that include:
• The specific stocks you purchase
• The stability of the company issuing the stocks
• Global economic conditions
• Stock market patterns and performance
The top advantage of stock investments is the potential to reap the rewards of significant value increases when things are going well. You could also make very nice profits if you buy and sell at the right times and invest strategically.
The main drawback is the uncertainty that goes along with anything involving stocks. In some instances, a stock that’s highly valued one day can decline significantly in a very short time—sometimes overnight if something unexpected rattles the market.
Silver ranks with gold as one of the most common precious metals often used for investment purposes. Silver also has a fairly consistent intrinsic value not as directly linked to market conditions or various economic factors. Your ability to enjoy a decent return on your silver investments is largely dependent on factors that include:
• How much physical silver you’re able to buy
• How long you hold on to your silver
• When you opt to sell
• Demand for silver at the time of purchase and when you sell
The biggest advantage of silver is it’s a tangible asset that will always have some value. There’s well-known volatility with silver prices, but there’s usually a fairly quick bounce-back. In 2008, when there was a big selloff and stocks and silver both declined in value, silver actually had a better comeback.
The most notable drawback with silver is you may not notice a significant ROI. In fact, you could have losses if you sell at the wrong time. Even if this isn’t the case, you may not see a massive spike in value that pays off quickly, such as what can happen when the stock market is booming.
Finding a Balance
There’s an inverse relationship between poor stock market performance and the performance of assets like silver and gold. What happens historically is there’s more of a demand and interest in physical investments when stock markets are unstable or when global economic conditions aren’t that great. For this reason, it’s worth considering a balance between stocks and silver with your investments. What this does is give you access to two investment sources with the potential to maintain your financial security and provide some added peace of mind.
If you’re building an investment portfolio and looking for the best place to purchase San Diego silver bars, gold coins, and other forms of precious metals, 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 great investments. 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.