Site Search

Get Luxury News by Email

Live the Good Life

Categories more

Sections

Other

Learn How to Reduce Investment Risks with Silver

Be the first to review this item!

Published
09/09/2019

Where do you keep most of your money? If you have a lot of money, most of your wealth isn’t liquid, it’s actually tied up in investments. How it’s invested is one of the most pressing concerns for your lasting financial well-being.

 

Risk vs. Reward

Investment basics are all about risk vs. reward. The more risk you’re willing to take on, the higher growth your money can experience. For your everyday retirement saver, big growth from the stock market is the priority because their personal savings wouldn’t be enough to pay for their retirement lifestyle.

Even if your money is in index funds, a safer bet than an actively managed fund, the stock market comes with big risks. With the prospect of a recession increasingly likely in 2020, markets are in for a tumble, and anyone overexposed could see their wealth taking a significant dive.

When you already have enough money, your biggest challenge as an investor is risk management.

 

Control Risk with Silver and Gold

Precious metals are often used as a kind of “investment insurance.” When the market goes belly up, silver and gold are the escape hatch for your money. Precious metals benefit when fear overtakes optimism as the dominant market sentiment. The “insurance” is seeing your precious metals holdings appreciate while the rest of your portfolio takes a hit.

A strong bullion position sets you up to ride the recession without suffering devastating losses to your wealth. And the wealthier you are, the more you should put your wealth into precious metals that protect you in the long-term.

 

Silver vs. Gold

Which precious metal is better insurance? To truly ensure your investments, you need to make up the losses on stocks. Gold is better at moderation. It’s a more stable store of value during quiet periods when markets are climbing. Silver is more of an extreme. During the last bullion rush in the late aughts and early 2010s, silver went from $8 at the time of the Lehman Brothers collapse to $40, a 500% increase, while gold went from $865 to $2067 at peak, a 238% increase. Both solid returns, but silver gained faster.

One of the reasons behind this relationship is that the silver market is just smaller than gold. When there’s mass movement on the metal, the demand pressure comes into effect quickly.

 

How to Buy Silver

Silver’s price volatility can make it a great value investment at the right time. As the markets head toward an inevitable recession, the window for increasing your position in the silver market is shrinking.

However, you can quickly and easily buy your silver online and save on premiums. Not all silver is made equally, and while spot prices give the impression that an ounce will cost the same everywhere, the source and form it comes in alters that price. For example, coins tend to have higher premiums than bars or round.

It’s much easier to buy silver than gold. Thanks to its low price, you can buy more at a time and take advantage of savings on high volume transactions, too.

Make sure your wealth is protected from anything. Invest in precious metals today.

Comments