Compared to gold, it’s considered second best. It’s essentially gold’s poorer cousin…or is it?

Sure, in the recent past, the silver market has underperformed. Investors were starting to lose faith. And it didn’t help that gold was heading back on a winning streak.

But our Silver Lake has achieved record-breaking yields this year. That’s a promising sign of an upward climb for a silver investment.

The slippery slope of silver

We should never lose sight of silver as a potential investment. It’s a true commodity and, like its richer cousin, is used as a form of money.

Its value at any given moment depends on a number of things, just like any other commodity. Whether it be industrial utilisation or the business cycle, or even independent monetary factors like inflation, deflation and interest rates.

Of course, the silver market is extremely volatile. It can drop just as fast as it rises. Like any market, there’s risk involved.

But when the price dips, it provides the perfect point of entry for an investment. And then it’s just a matter of jumping off the train just as it’s reaching the top of a hill.

This means, just like gold, silver is a great means of protection against inflation and economic turmoil. It can easily absorb the changes of the market, no matter how drastic. So it’s perfectly suitable for a versatile, yet steady long-term portfolio.

What’s so good about silver?

Both silver and gold are perfect long-term investments, able to protect the value of your wealth. There’s no real difference between them in that regard.

Unlike gold however, silver is often used for more than just investment purposes. Silver is an industrial metal and has hundreds of other uses, driving up its demand throughout different industries and market sectors.

For instance, silver is used in many electronic devices because of how good it is at conducting electricity. It also doesn’t corrode, making it ideal for the circuits in household appliances (and bracelets, of course).

And, as anyone with eyes can tell, it’s an amazing reflector, making it perfect for a coating on glass surfaces.

But a recent, more innovative usage is its role in the health industry. The compound silver sulfadiazine, for instance, is great for treating burns.

Stay on the silver path

At Money Morning, we publish articles daily discussing all the ins and out of all things economics. To stay up to date with the most recent news on silver, check out our articles below.

The Ice-Nine Lockdown

Ice-Nine is a freeze of the financial system. It’s something that’s happened before, and it’ll happen again in the next crisis.

How to Buy Gold Bullion

As I’ve been talking about the reasons why you should own gold bullion, many readers have written in asking how to buy the shiny stuff.

Is BHP Billiton a Buy?

Everyone’s talking about the future of BHP Billiton [ASX:BHP]. Yesterday it closed at $17.48 per share. That’s 44% lower than its February high of $31.07 per share.
Money Morning Australia