Silver bullion is investment grade refined pure silver in coins and bars. Silver has intrinsic value and finite supply making it a hedge against economic collapse.
Silver bullion is a known weight and fineness of precious metal that can be purchased at the current spot price of silver, with a small percentage of costs incurred in refining, fabricating, and shipping the bullion to you.
Silver in traded in troy ounces, while its price is quoted per ounce.
Silver price performance
Silver bullion has often been called the “poor man’s gold”
It is because it has been perceived as less attractive than gold. It is also because, in recent history, the silver spot price has always been much lower than that of gold. It creates the perception that silver is somewhat less precious than gold.
Silver, along with gold, is viewed as a valuable hedge in portfolios comprised of bonds, cash and stocks. Should equity markets become volatile, investors buy silver and more gold bullion in their investment portfolios.
Silver prices, like that of all precious metals, are largely negatively correlated with stocks and bonds. As bonds and stocks decline, the price of silver tends to rise. When this happens, as it did in recent years, more investors buy silver, which further contributes to rising silver spot prices.
Silver price chart- 10 years
Investors buy silver bullion to hedge against economic and financial collapse. Silver, along with gold, is regarded as an “asset of last resort”. During periods of economic, political and social dislocations and unrest, people look to the substance, permanence and intrinsic value of both silver and gold.
Buying silver helps to protect investor’s wealth and purchasing power. When inflation takes off, as it has done throughout history and will do so again, silver demand will also increase. This rising demand for a precious metal that is very rare and has a small finite supply will result in rising silver prices.
Silver price forecasts should be avoided, as it is nigh impossible to predict the future price of any commodity. However, several factors at play in the world economy point to a higher silver price forecast.
Firstly, the scale of Quantitative Easing in recent years. Secondly, the many persistent financial, economic, systemic, and monetary risks of today. Finally, the current robust demand for silver coupled with its dwindling supply. These factors have most analysts believing that the silver price chart will see record nominal prices of near $50 for silver per ounce in the coming years.
Should the world succumb to the many risks threatening the global economy and financial system, silver bullion will likely again act as a hedge and safe haven asset as it did from 2002 to 2011 and most importantly during the financial crisis from 2007 to 2011.