Inflation is hitting everyone hard, and money doesn’t go as far as it used to. Don’t solely rely on paper money – which is greatly impacted by inflation – instead, invest in precious metals like silver to hedge against inflation.
The silver dollar blows the paper dollar away in times of inflation, especially sustained inflation. During periods of sustained inflation, like in the 1970s, silver shows its power. Before inflation rose, silver was valued as low as $1.27 per ounce. As inflation continued, the price of silver exponentially rose. Silver reached a high of $50 per ounce in 1980, a 3,900% return.
Why does silver perform so well during times of inflation?
There are several reasons silver is one of the best ways to protect yourself against inflation. There’s a huge difference between the availability of paper money and precious metals, and the difference in value will grow quickly.
Limited Supply
Silver is a precious metal, and there’s a limited supply available on the planet. Once we run out of silver, there’s no more. Demand for silver rises significantly during inflation, and it can be nearly impossible to get a hold of. This drives the price of silver even higher than they already are.
Test of Time
Silver has stood the test of time as a store of wealth for thousands of years. Contrast that with fiat currencies (government-issued currencies not backed by gold or silver), which only have a lifespan of a couple of decades. Silver is the clear winner, and you can count on it for your entire life.
Industrial Use
Silver is used widespread industrially, especially for electronic devices, electrical systems and solar panels. 600 million ounces of silver are used for industrial purposes each year, which means there’s less supply available for silver investors. During industrial processes, millions of ounces of silver are destroyed, which drives prices higher and higher. In contrast, gold has limited uses beyond jewelry and investment purposes, which keeps demand for gold lower than demand for silver.
The Future of Silver
It doesn’t look like inflation is going to slow down anytime soon, so it’s to make the investment in silver before it’s too late. Silver prices are only going to continue to rise with inflation, and the demand for silver will skyrocket. Protect yourself from inflation now so you don’t live with the regret of not investing in silver, the best inflation hedge.
Why silver instead of gold?
Silver is much cheaper than gold, which makes it more accessible to small investors who are starting to build their portfolios. As of March 2022, an ounce of silver is valued at $25. In comparison, an ounce of gold is valued at almost $2,000. Silver is the clear winner for beginner investors.
