In an age where digital transactions and cryptocurrencies are the norms, the concept of precious metals as a form of currency might seem outdated to many Millennials and Gen Zers. However, there’s a compelling case to be made for considering silver not just as a relic of the past but as a relevant and wise choice for long-term wealth preservation and financial security.
The Forgotten History of Silver as Money:
For centuries, silver and gold have been the cornerstone of global trade and currency. Our grandparents carried silver coins in their pockets, and the coins in circulation prior to 1965 were minted from 90% pure silver. Many in America built their wealth based on gold and silver reserves.
This historical significance isn’t just a matter of antiquity; it’s a testament to the intrinsic value these metals have held across various cultures and economic conditions.
Why Silver is Relevant Today:
In our increasingly digital financial world, silver stands out as a tangible asset. Unlike digital currencies or stocks, silver is something you can hold, which has its own appeal and security in an age of intangible assets.
Silver has historically offered protection against inflation. When fiat currencies like the dollar lose value due to economic policies and market fluctuations, precious metals often retain their value or even appreciate. This is because these commodities often have an inverse relationship with other investments.
Compared to gold, silver is much more affordable, making it an accessible investment option for young investors who are starting to build their portfolios.
Diversifying your investment portfolio is a fundamental principle of sound financial planning. Including silver can provide balance and stability, especially during times of economic uncertainty.
For the environmentally conscious, silver offers a sustainable investment. It’s recyclable and plays a crucial role in various green technologies, including solar panels.
Beyond its value as an investment, silver’s industrial uses are expanding in the tech and medical industries, potentially driving up its demand and value.
How to Get Started:
Start by learning about the history of silver as currency and its current role in the economy involves delving into various educational resources and platforms.
Stay updated with the current role of silver in the economy by following financial news platforms and blogs that specialize in precious metals. Websites like Kitco, The Silver Institute and FindBullionPrice.com offer news, analysis, and data on silver markets.
Silver can be purchased in physical form (as bars or coins) or through silver Exchange-Traded Funds (ETFs). A silver ETF purchases and holds silver or silver-related assets in a trust. The value of an ETF share is thus linked to the price of silver, minus fund expenses and fees.
Investors can buy and sell shares of a silver ETF on a stock exchange, just like individual stocks. This provides a simple way to invest in the silver market without dealing with the challenges of physical silver storage and security while aiming to track the spot price of silver. This means that the ETF’s share price moves in tandem with silver prices in the global market.
Like any investment, the spot price of silver fluctuates. Keeping an eye on the market can help you make informed decisions. The “spot price” of commodities like silver and gold refers to the real-time market price at which they can be bought or sold for immediate delivery. The spot price of silver is influenced by various factors, including supply and demand dynamics, geopolitical events, market speculation, and currency fluctuations. For precious metals like silver, gold, and platinum, the spot price is typically quoted per troy ounce.
For those new to investing, rethinking silver as a currency and store of value offers a bridge between the past and the future. It’s a way to preserve wealth in a tangible form that has stood the test of time, while also aligning with modern values of sustainability and diversification. In an ever-changing financial landscape, the enduring value of silver can provide both stability and peace of mind.