5 Things You Need to Know About the Silver Supply Crunch and How Silver Bars may be the Answer
Smart investors have been diversifying their financial portfolios for many years with gold and silver products, such as gold coins, silver bars and collectible jewelry.
A few compelling benefits of investing your money in precious metals include maintaining a financial currency outside of paper money and not having to rely solely on traditional retirement options such as 401ks. The time to begin investing in precious metals, such as silver bars or coins, is now. This is because one of the most sought-after precious metals to invest in, silver, is now running low in supply.
Due to the high demand for silver around the globe, and the dwindling supply, silver prices may begin to increase dramatically. We’re exploring the facts you need to know about the silver supply crunch and offering insight into what you can do to prepare. Let’s dive in!
#1. Why is Silver Coming into Such a Short Supply?
First, it’s important to understand where silver products, such as silver bars and coins, come from and why the precious metal is in such short supply. Silver is mined in many countries around the world, including Mexico, Peru, Chile, Canada and the U.S. Although these countries are said to have the largest deposits of silver globally, there are approximately 50-53 other countries where silver has been found, as well.
Silver is most often found in combination with many other types of minerals, rather than by itself. This means the process of extracting silver is very labor intensive and often expensive because it must be properly separated from other minerals and metals.
In terms of the vanishing supply of silver, this is due to the fact that we use silver in a wide variety of products, from our electronics to jewelry and collectibles such as silver bars.
Other common products that are made of silver include silverware, batteries, medical device equipment, and many others. The global consumption of silver is so great that The United States Geological Service (USGS) predicts that silver may be the first element to go extinct.
Ultimately, this supply and demand scenario means that the time is now for investors to being purchasing products like silver bars, coins and collectibles to capitalize on lower silver prices before they skyrocket.
#2. Are There Any Other Precious Metals We Should be Concerned About?
Currently, silver is the precious metal that is in the greatest risk of becoming extinct, due to its ever-increasing demand and dwindling supply. While other metals, such as gold and platinum, are also smart investment opportunities, they are not in as great of a risk of becoming extinct.
For investors interested in other precious metals aside from silver, gold is a great place to start. Gold has managed to hold its value over time, similar to silver. Gold also has the added benefit of being closely monitored by banks and financial institutions around the world, since it is accepted as currency globally.
Additionally, gold is produced by government operated mints, ensuring its authenticity and value. Explore 20 reasons to buy gold as an investment today to learn more about this precious metal or browse gold coins and gold bars online.
#3. What Economic Factors Affect the Silver Price & Supply?
There are many factors that contribute to the silver supply shortage, and that dictate the volatile silver price. First and foremost, the type of economic market will significantly affect the price of silver and silver products such as silver bars and coins. Historically, during a bull market, the silver price will typically rise more than the gold price.
Investors are also able to look at the strength of the U.S. dollar to gauge the price of silver. Generally, when the dollar is strong, the price of silver tends to drop and when the U.S. dollar weakens, the silver price increases. The silver price falls faster than gold, but it also rises more quickly as well. Therefore, you may see your investment in silver grow much faster than in gold.
Studying historical pricing trends can often help shed light for investors to understand how the silver price fluctuates and how supply and demand directly affect the cost of the precious metal. In 1980, silver hit new record prices based on rapid consumer inflation. In January 1980, silver had gone up to $35 / oz. from $19 / oz. in November 1979 while gold gained a few hundred dollars.
#4. How Can You Prepare for the Dwindling Silver Supply?
The best way to prepare for the dwindling silver supply is by taking advantage of the lower silver prices today. As silver is used more and more in a variety of products globally, the demand for the precious metal will only increase. Currently, it’s possible to invest in products such as silver bars, coins, collectibles and jewelry at affordable prices, but that won’t always be the case.
It’s important to determine which type of silver products best fit your lifestyle and needs, and then begin shopping for them accordingly. For example, many beginner investors prefer silver bars because they’re easily stackable and therefore more convenient to store than other types of silver products.
#5. What are the Benefits of Investing in Silver Bars?
As we mentioned above, silver bars are a popular investment choice among many investors. There are numerous benefits to investing in silver bars, from their ability to be stored easily to the fact that they’ve continued to hold their value over time, year after year.
Explore several other benefits to investing in silver bars, below:
- You have a variety of sizes to choose from, from 1oz to 100oz options.
- Shop according to your design preferences, whether you prefer the fractional silver bars or hand poured bars.
- You’re able to begin investing in silver bars for as little as $20.
If you have any questions on how to begin investing in this exciting silver product, please reach out to our knowledgeable customer support team who would be happy to assist you.
Investing in Silver Now is a Smart Investment
Although silver remains in high demand globally due to its use in the technology field as well as the solar energy industry and many others, it is currently underpriced. In fact, you can begin investing in silver products such as silver bars for as little as $20 per ounce.
There are a remarkable number of benefits to investing in silver products. While it doesn’t return dividends, silver is known to keep up with inflation over the long term. If you’re saving for retirement, a 10 to 20% position in silver will stay steady through market crashes and high inflation.
Additionally, there are many exciting silver products to choose from, based on your personal preference. At Silver Gold Bull, we have a large selection of silver bars. Start exploring your investment opportunities today online. We look forward to helping you!