Hi,
Silver has reached a historical mark by trading at $108.93 per ounce in Canadian dollars – an amount that would be unfathomable in the past. But while everyone is excited over this record-breaking performance in the market, the more fascinating aspect is the reasons for this metal’s position as a great investment even at these levels.
Historic Moment For Silver
This level of pricing is more than just speculation. Silver is being pulled in two different directions at once: investments and industrial demand. Silver will soon be found in more technological fields, such as solar panels and electric vehicles. But on the other side of this equation, investors want hard assets due to inflation, debt, and currency uncertainty remaining at the forefront. This unique positioning of silver in relation to other commodities has been due to the necessity of the industry and the monetary value of the metal.
Still Affordable Compared to Gold
Even at $108.93 CAD per ounce, silver is much more affordable in comparison to gold. To many investors, silver also presents an easier way to purchase precious metals without having to give up potential gains in the long run. Unlike gold, silver presents an opportunity to make an investment in phases due to its affordability. It is about the only asset whereby you can accumulate valuable riches without having to spend tens of thousands of dollars all at once.
High Demand, Low Supply
The supply of silver is tight. Compared to the growing demand for silver used in industry and investment, silver mining has not kept up, and this has provided an underlying support to its price. Silver is unlike fiat money, and it cannot be simply printed or minted to meet demand because once silver is mined, that is all there is of it. This is one of the reasons why silver is considered both a hedge and a store of value for many investors.
A Smart Hedge in Uncertain Times
Given the current economic turmoil, high interest rates, and geopolitical events, investors are considering alternative investment options for traditional investment tools. Silver provides investors with the benefits of diversification, real ownership, and protection against currency deterioration, which is more accessible than gold.
Whether you are accumulating for the long term or seeking diversification, silver is again proving its worth. Silver is an investment vehicle that is not as heavily in demand as gold, but is still renowned globally.
Final Thoughts
While a price of $108.93 CAD per ounce may generate headlines about silver, rest assured that it is far from being unreachable. In fact, due to its price, its uses, and its past performance, Silver is one of the most attractive assets that exists today. As a protection-of-purchasing-power solution for investors who are looking for malleable investments, silver is a shrewd decision.
