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Why Hold Investment Grade Silver Bullion?

Why Hold Investment Grade Silver Bullion

Silver bullion is a more cost-effective means of holding precious metal than gold and gives you the ability to hold large quantities of the precious metal that can come in handy during times of systemic financial stress.

Silver bullion offers choice

Whilst gold is usually the metal of choice, a number of other metals also offer similar investment opportunities.  These typically include silver, palladium and platinum.  Silver’s lower value wins out in some situations.  After all, when using fiat currency, you don’t carry everything around in £50 or €100 notes.  You ensure that you have some smaller denominations as change. In a failing economic situation, silver can work very well in these situations for smaller transactions.

Cash in situations such as these (and let’s be honest, these situations happen more than we like to lead ourselves to believe, particularly in Asia, but increasingly in the EU) can lead to depreciation due to actions like printing money (also known as economic stimulus packages or bailouts).

Silver bullion – a tangible asset

Silver bullion, on the other hand, is a tangible asset that is real and finite. That means although it is vulnerable to market fluctuations like other commodities, silver isn’t likely to completely crash because of its inherent and real value.  Paper or digital money??? Well, all bets are off.

Financial performance of silver bullion

Historically at times of economic fluctuations silver performs well.  Silver bullion is worth significantly less than gold.  You will usually obtain around 75-80 ounces of silver for the price of an ounce of gold.  This means that gold is affordable and can be used as a hedge even by those who are less financially stable.

Silver has outperformed gold in recent years.  Between 2008 to 2011 Silver gained 448 per cent, while gold gained just 166 per cent in that same time period.  It’s worth remembering though that in normal times, whilst silver will not collapse it is a less liquid market than gold and will not be in such high demand.  Silver doesn’t perform as well as more regular investments such as property investment.

In spite of the name, The Gold Bullion Company offers a wide range of silver bullion coins and silver bars, making it the perfect place to begin your silver investment journey.