Why You Should Invest In Silver Coins

News | September 21, 2022, 10:02 AM | The content is supplied by a Guest author

Though the market price for silver and silver coins has been less than favorable in recent times, there are many macro factors that seem to suggest that silver and silver coins are going to make a comeback.

Throughout this article, we explain the reasons we believe that silver coins should be considered for every person's investment portfolio, at least to a small extent. We are very bullish on the future prospects of silver and the silver price, whilst acknowledging the inherent uncertainty in the global financial markets. But even within that uncertainty, the reasons outlined below all seem to suggest that an investment in silver, even a smaller one, is a very sensible thing to consider.

Silver Is Recovering from Its All-Time Low Levels

When you take a look at the recent trend of silver in the market, you will notice that it is recovering from its recent lows over the last couple of years. Having said that, it is the right time to invest in silver. From here, the uptrend looks more promising and there is a very limited downside to this metal considering the recent market trends. As a result, you can consider silver as a promising investment option.

Taxation Strategy

All good portfolios need to be structured in a way to minimize unnecessary taxation. Though a certain amount of taxation is to be expected and is reasonable, we want to ensure we aren't paying more tax than we need to.

In the world of silver coins, there are certain coins that can be sold for profit without attracting capital gains tax and there are other coins that do attract capital gains tax when they are sold at a profit. As a result, it can be a smart decision to purchase those coins that do not attract capital gains when sold for a profit and include some of those in your overall silver portfolio.

Growing Industrial Demand For Silver

There is currently a growing demand for silver, driven by industrial demand. Silver is used extensively in electronic components that service IT, solar, & manufacturing processes.

This spike in demand for silver has not yet been accompanied by an equivalent spike in the mining of new silver. As a result, there is an increased demand for the current supply of silver and the price is likely to increase as a result.

Transactable

Many people are drawn to silver coins because they have some value in facilitating transactions. Especially in times of geopolitical uncertainty, having the ability to transact with other people, with your own currency can be an attractive proposition. Given that so much of our wealth is stored in online bank accounts, and we transact with others using online payment processors - having a bag of silver coins that you could potentially use to pay someone in order to acquire goods and services if things in the world were to go downhill, can give you some satisfaction and a sense of security.

Stock Market Is At All-Time High Levels

The stock market has had a very good run in the last few years, currently sitting at record high levels. Financial markets always go in cycles, which would suggest that these highs are about to turn. As the stock market turns for the worst, many investors will flee the stock market and look for a safe haven for their wealth, and many will choose to store a portion of their wealth in silver. This increased demand will have a positive impact on the price of silver, in all of its various forms.

Good Source of Diversification

Many people make the mistake of putting all of their wealth into a single investment vehicle, often the stock market, or more recently cryptocurrencies. We know from history that no single investment vehicle survives without significant down trends at times. As a result, it is wise to spread your investments across multiple vehicles with the intention that when some investments are experiencing a downturn the other investments you have made may be experiencing an uptrend, or be stable at least.

Safe Storage of Your Silver Coins

If you make the smart decision to allocate a portion of your wealth to silver coins, then you need to decide how you wish to store them. There are many different ways you can go about storing coins, whether they are at home or in a specialized coin depository.

Wash Your Hands

Regardless of where you choose to store your silver coins, the first thing you should do before handling them is to wash your hands. Your hands naturally accumulate dirt and other oils which can have a negative impact on coins over time. As a result, before you touch coins you should always wash and dry your hands.