Why silver is a bad investment

Platinum is most commonly used in jewelry. If you want to be a fancy investor and expand your portfolio, we suggest looking elsewhere. Just like when you hold a dollar bill in your hand, you have the security of being able to actually have your investment in the form of gold bars or silver coins in your hand or stuffed in your safety deposit box.

With ETFs, you buy stock in the precious metal of your choice. That stock is tied to the current value of the gold, platinum or silver that you invested in. Just like the stock market, investing in ETFs is a digital game, allowing you to move things around with the click of your mouse. That simple. Unless you want to get into the jewelry-making game, investing your hard-earned dollars into precious metals like gold, silver and platinum is not the best use of your money.

Peru, China and Russia fall close behind. This puts it in the category of a safe haven, which is defined as an investment that is expected to hold its value as the market turns turbulent.

Due to its slightly safer nature, though, some investors choose to make silver a part of a larger portfolio. The fact that they tend to do better when other stocks are failing can help balance out your portfolio.

If you leave the money in for the full term, you can earn up to 3 percent interest depending on the rate offered by your lender of choice. Money markets are also considered safe havens, although interest rates generally are lower than with CDs. Money market mutual funds can bring a higher interest yield, but interest rates can vary throughout the life of your investment. Government and municipal bonds may also provide relatively safe investment opportunities. Government bonds are thought to be among the safest investments because the money is backed by the U.

One of the biggest draws to metals as a risk-averse investment has to do with protection against a market crash. The thinking is that even if cash has no value, silver and gold will, so you can always trade it for goods.

This, of course, only works if your investment is in silver coins or bars that you keep in a safe place. Many still invest in silver and gold stocks, though, with the logic that metals tend to fare well during stock market crashes.

Silver is used heavily in industrial sectors, which makes it more likely to be tied to the performance of the greater economy. Stephanie Faris has written about finance for entrepreneurs and marketing firms since She spent nearly a year as a ghostwriter for a credit card processing service and has ghostwritten about finance for numerous marketing firms and entrepreneurs. Recently, the investing world is boasting about Silver, and more people showing interest to invest in silver.

But why silver is a bad investment? One of the main reasons is the large supply of silver. Moreover, the silver investing market is too small and the number of people investing in silver is also small. So, unless there is a surprising demand for silver outside of investment purposes, there will be a huge risk in investing in silver. Bars: This is the most common way people can invest in silver. People can buy silver bullion bars.

This type of bar is flat and rectangular in shape. You can easily store the silvers bar at home or a bank in a safe deposit box. Coins: The silver coin is another convenient silver investment type. People can buy silver coins and store them in their houses. There are two types of silver coins available fine or junk silver coins. When buying silver coins make sure you buy a new and fine silver coin because junk silver coins are older coins and the percentage of silver is lower.

Certificates: People can buy a Silver certificate of ownership instead of a silver bar. It is also a convenient investment type because using the Silver certificate of ownership people can continue to trade in the market without having to transfer actual physical silver.

Here you will be dealing with the shares of silver mining companies. Every investment has risk and silver investment is not an exception. There are some risk factors available in Silver investment. They are —. Sensitive To Recession: One of the main risks of investing in silver is that the price of silver is uncertain. The most common types of precious metals investors want to invest in are bullion coins and bullion bars. Coins are opted for by most investors, and large investors and institutional buyers like bullion bars.

When we talk about gold as a king of metals in the head of the rate of return, there is much stiff competition. People who rely on this precious metal for investing are based on information and data.

When we discuss investing your money in different assets like silver, it offers a good return on investment in precious metals.

When you compare the price of silver with other assets, you will notice that it is not overvalued yet. Silver is a good investment than gold because it has more applications than gold.

Silver has more applications in industries on demand, as silver is more thermally conductive. So far, the silver price has made significant gains in , rising Gold American eagles, the example of gold bullion coins, are the best type of precious metals for most investors in which you can invest. This is because sovereign coins are easily recognizable, easy to trade, and generally sell at higher premiums than bars. Silver is often used in the making of copper and gold mining, milling, and smelting.

To conclude this topic, investing may be risky from the above discussion, no matter if you opt for which precious metal. However, you will find both of them risky in investments as compared to other metals.