Reasons to invest in Silver: [Essay Example], 509 words GradesFixer

Haven't found the right essay?

Get an expert to write your essay!


Professional writers and researchers


Sources and citation are provided


3 hour delivery

This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Reasons to invest in Silver

Print Download now

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

Download PDF

Precious metals provide long term assets which witnessed consistent growth in price, since hundreds of years, and these prices are directly related to inflation, growth in rates and increase in demand. Last rally of precious metals was witnessed during 2016 first half. The key macroeconomic factors responsible for precious metal rally are the risk of debt crisis and deflatory pressures. Silver (or argentum (Ag) in Latin) has many benefits. It has no counterpart risk, which means, one does not need to make a complex business contract involving various regulatory provisions, partners or risks, to hold silver, as in case of bonds or stocks. Silver or gold like precious metals do not default. These are physical assets which can be held in real, and it provides long term investment with stable growth. These metals were used in coinage during historical eras, and hold significant value. These have revalued itself with time, which does not happen in the case of paper money.

The world is growingly becoming dependent on paper currency, debit card and digital transaction where one cannot rule out the risk of crisis or loss due to unforeseen factors, such as changes in forex standards, economic crisis, bank defaults, downturns etc., whereas, physical silver or gold are assets which can be held or carried to other places, and everywhere you get the same value for these metals.

Currently, the price of silver is not very high which supports investing in it for diversification purpose. It is reasonably priced as compared to other precious metals and some investors holds huge volumes of the metals, which have given excessive growth in the last 10 years. In the bull markets, silver, sometimes, performs better than gold. Gold gain in the years from 1970 to 1980 was 2328 per cent but silver returns were more than 3000 per cent. From 2008 to 2011 the gains on gold was up to 166 per cent and silver was 448 per cent.

Globally stocks of silver are falling but the demand is increasing. Most government treasuries do not hold large amount of silver. Only a few countries in the world such as US, China, Mexico and India hold silver in large amount. Global government-owned silver inventories lowered by 73 per cent in the last few years, at the same time as, its factory demand grew, predominantly in solar panels and batteries, and is one of the metals which have industrial use due to thermal conductivity, electricity conductivity and reflective properties. Highest per cent of silver is used in electronics products, batteries, solar panels, biocides etc.

At least 1/3 gm of silver can be found in cell phones and demand for phones is expected to grow in coming years – that will raise the demand for silver. Self heating windshields in some new vehicles have ultra thin layers of silver which prevents glass freezing. It is used in photovoltaic cells and as a catalyst for the production of certain chemicals, plastics etc.

The mine production of silver is reducing and its secondary supply is also reducing.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Cite this Essay

To export a reference to this article please select a referencing style below:

GradesFixer. (2019, Jun, 27) Reasons to invest in Silver. Retrived January 28, 2020, from
"Reasons to invest in Silver." GradesFixer, 27 Jun. 2019, Accessed 28 January 2020.
GradesFixer. 2019. Reasons to invest in Silver., viewed 28 January 2020, <>
GradesFixer. Reasons to invest in Silver. [Internet]. Jun 2019. [Accessed January 28, 2020]. Available from:

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.



Your essay sample has been sent.

Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

thanks-icon Order now

Hi there!

Are you interested in getting a customized paper?

Check it out!
Having trouble finding the perfect essay? We’ve got you covered. Hire a writer uses cookies. By continuing we’ll assume you board with our cookie policy.