Hi,
It is a question that many Canadians may be asking, particularly given current prices for silver and the uncertainty that has still hung over the economy. Whether it is your first time making such a purchase or you’re seasoned, it can be quite difficult to know when it is best to buy silver. When you step back from the situation, things become more straightforward.
Silver Remains Historically Affordable
Even after the latest price surge, the fact remains that silver is still MORE affordable compared to gold. Gold may be a luxury befitting only few new investors, but the good news is that buying silver does not mean putting a hold on one’s financial aspirations.
Historical graphs show that silver remains well below its all-time highs when it comes to inflation adjustments, which is exactly why many view it as having further upside potential.
Strong Demand Is Emerging From Several Areas
It is not just a precious metal that is used in jewellery and coins to make them more attractive and aesthetically appealing. It is also used in industrial applications and is finding increasing applications in solar panels and other inventions.
In particular, it is worth noting that investors are acquiring silver as a hedge against inflation, devaluation of the currency, and market uncertainty. Taken together, there is no other metal like this that is so well-positioned in the market.
Canadian Investors Are Paying Attention
Notably, the number of Canadians searching for ways to safeguard their purchasing power has increased as the high cost of housing and other expenses continues. Investing in silver provides a tangible alternative to safeguard against the norm.
Another benefit of silver to Canadians is the ease of accessibility. Silver is easily purchased, stored, and recognizable at all times. Whether it is in the form of coins, bars, or rounds, it is available in all shapes and sizes to suit all budgets.
Marking the Market vs. Time in the Market
To precisely time the silver market is close to being impossible. Experienced investors tend to instead rely on consistency – buying over a period of time.
For example, it often takes time for silver to play catch-up after falling behind gold. This can be an attractive time for people to buy it.
Is Now The Right Time?
Many Canadians will look to preparation rather than perfect timing as the solution. The importance of silver as an accessible way to gain commodity exposure cannot be overstated, and it is an ever-growing part of industry and wealth management.
If your objective is diversification, long-term preservation, and having an actual asset, then silver is still a compelling option.
Final Thoughts
Nobody knows the market for sure. But the combination of affordability, continual demand, and past performance makes a precious metal like silver an attractive choice, especially in these uncertain times. It may be a very prudent time for Canadians to consider initiating or augmenting a position in the market for those looking to diversify their portfolios.
