Why consider investing in Silver?

investing in silver

Why investing in silver is vital

Investing in silver is new to many. Even established gold investors may not have bought silver before. But that’s now changing, as we’re seeing just as many enquiries in silver as gold. So why are more and more people investing in silver?

Many uses

Silver possesses the highest electrical conductivity of any element and the highest thermal conductivity of any metal. Silver unlike gold isn’t merely desired but essential for industry and commerce and its necessity has put considerable strain on silver’s supply thereby increasing demand for silver investments.   Historically gold and silver used to trade at a ratio of 12:1 which meant it took 12 ounces of silver to buy 1 ounce of gold. Today – the ratio has widened and it takes 60 ounces of silver to buy 1 ounce of gold. Most commentators and analysts believe that as a result, silver bullion is massively undervalued with many predicting it could reach $100 an ounce in the next five years.

Supply shortages

As silver’s use in industry increases many financial analysts, investing experts, and even PHYS01_Animated_Gif_3_MPUgeologists believe that a silver shortage is upon us. In fact the Silver Institute predicts that silver demand for industrial purposes will increase by 36% by 2016.

People that ask themselves, “why consider investing in gold?” end up considering silver investment. As silver is much cheaper than gold it only takes a small price change to effect a large percentage increase in growth. It’s fair to say that consequentially – silver is more speculative than gold but together they provide a good balance within your precious metals portfolio.

Tax free silver?

Unlike physical gold, when purchasing physical silver as an investment you have to pay VAT. Despite paying an additional 20% on top of the silver price, demand for the precious metal has surged over the last few years thereby increasing the silver price by almost 70%. However Physical Gold Ltd has created a Tax Free Silver product that allows investors to capitalise on the current buying opportunity whilst avoiding the need to pay VAT or in fact – any tax at all.

Daniel Fisher

Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

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