Why It Makes Sense To Buy Silver Bars For Investment

After the recent economic crisis, many investors have started diversifying their investment portfolio as hedge against inflation. One of the options is investment in precious metals that include gold, silver, palladium and platinum. Gold is always a popular choice because of the high demand from jewelry and electronic manufacturers. On the other hand, silver is not as popular as gold when it comes to jewelry but it plays a dominant role in the industry that includes electrical appliances and electronic products. In fact, the price of silver is affected by its applications and not fashion. If you have plans to invest in silver, a better option would be to buy Silver Bars.

Why silver bullion and not silver ornaments

Even a small portion of gold or silver in your investment portfolio reduces both volatility and risks. Silver bars for investment are stamped with .999 fine purity as well as its weight. If you are a beginner in silver investing and the amount of your investment is $10,000 or less, a better option would be the one-ounce bars because their prices are easier to calculate than if you choose the 5-ounce, 10-ounce or 100-ounce where you need to do some serious math. The 10-ounce silver bars on the other hand are collector’s favorites because their prices are within reach of most people and they make wonderful gifts. However, a serious silver investor will typically consider the 100-ounce silver bars that carry the lowest premiums. Serious investors do not invest in silver ornaments and silverware because purity is dependent upon the jeweler you buy them from.

Why it makes sense to invest in silver

Silver is now widely used in different industrial applications due to its exceptional conductivity and reflectivity characteristics. Silver is the choice for electrical and electronic items mainly due to its affordability. In 2013, the industrial demand for silver averaged at around 50% with electronic and electrical applications making up the bulk of the demand. Since the generation today is highly dependent on electrical and electronic products, it is no surprise that silver will maintain its significant role in the market. The demand for silver helps secure its future in the coming years.

New industrial opportunities for silver

Another opportunity for silver is its use in the touch screen of flexible displays that includes tablets, mobile phones and e-readers. The market for touch screen display is expected to grow because of the increasing demand for mobile devices. Silver also plays a vital role in key areas of LED production which includes its reflective layer, adhesion layers and binding wire. LED is growing in popularity as a component of signage and data communication which ensures a considerable promise in silver demand.

In recent years, the demand for silver has gone through a difficult period because of the decline in demand for electronic gadgets. However, the economy is starting to recover and it appears that the market demand for silver is again on the rise particularly with the tremendous increase of electronic consumer products. Different industries are also tapping the unique characteristics of silver and it is hardly surprising if new uses will soon be discovered.

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