Why buy and invest in silver?

Many experts recommend investing in silver. It complements an investment in gold, and is still very accessible. We recommendbuying silver as a way of familiarizing yourself with investing in precious metals, on a smaller budget or as a complement to investing in gold. The Abacor experts give you all the information you need on buying precious metals.

Why buying silver is an investment for the future

Here are a few reasons to get interested in buying physical Silver:

• Silver will retain its value as a safe haven, unlike non-tangible assets and equities.
• Silver is still affordable and has interesting potential for the future.
• You can choose to invest in bullion or bullion coins.
• With a lower value than gold, silver makes it possible to split an investment in precious metals.

Why invest in silver?

You've probably heard of the complementary nature of bimetallism (circulating gold and silver currencies) in investment.Silver is a precious metal widely used throughout the world and known as a safe-haven asset. Data from the last few years suggest that the price of silver has great potential for growth. Abacor can provide you with all the information you need aboutinvesting in silver.

The use of money around the world

Silver is the tenth most traded commodity in the world, and the second most traded precious metal after gold.
Unlike gold, around 50% of silver demand is used in industry.

Industry demands more and more

The precious white metal is the best conductive metal body for heat and electricity under normal temperature and pressure conditions. This is why silver is widely used in electronics, for capacitor contacts and photovoltaic cells in particular. This normally affects a wide range of industries and products: aeronautics, electronics, automobiles, and the solar industry, which is a fast-growing sector.

Jewelry

Jewelry and goldsmithing is the second largest sector, with around 7,700 tonnes in the early 1990s. Silver is used to make objects and jewelry (pendants, bracelets, necklaces, silverware, cutlery, etc.). Silver's good malleability makes it possible to design works of art.

Photography

The photography sector is consuming less and less silver due to the development of digital photography. Nevertheless, it is the third most important field for silver demand, with around 5,600 tons in the early 1990s. Today, the radiography market is larger than the consumer market.

Silver supply increasingly unable to keep up with demand

Demand for silver metal continues to grow, with the explosion in demand for electronics and investment. Silver consumption was around 26,000 tonnes in 2004.

Silver supply comes from mining or recycling, which amounted to 19,700 tonnes and 5,600 tonnes in 2004.

There are fewer and fewer abundant silver mines, and it is estimated that only 40% of all silver mine production comes from silver mines. The rest comes from mines of other metals, of which silver is a by-product.

Why is buying silver an affordable investment today?

Gold and silver prices tend to rise and fall at the same time, but not in the same way. Indeed, the high level of industrial use makes the price of silver metal much more volatile. However, a number of factors suggest that the price of silver is undervalued, and almost all experts agree that the value of silver is set to rise.

• Supply is finding it increasingly difficult to keep up with demand for silver. According to the Silver Institute, annual production was 23,000 tonnes in 2013, while demand was 30,000 tonnes.
• Some experts claim that silver prices will explode back to a more compliant gold/silver ratio. On January 23, 2018, the ratio was 78.87, whereas before 1900 the ratio was historically around 15 or 16. While industrial use has increased this ratio, today it risks reversing the trend dramatically. The consumption of silver metal is such that it has considerably depleted the planet's silver resources, and this scarcity will undoubtedly drive up prices.
• The growing use of silver in electronics and renewable energies, as well as the demand forbullion, are adding to demand. Indeed, the price of gold is making investment in gold less and less accessible.
• Finally, many paper silver certificates have been sold even though there is not enough physical silver in reserve to satisfy the demand for physical silver delivery from all holders of these paper certificates. This abundant "paper" supply has helped to limit the rise in silver prices over the years, by distracting it from the reality of the physical silver market. But the flight to tangible assets (and therefore to physical silver) will cause paper certificates such as ETFs to explode. As a result, the price of silver will explode with the sudden demand for physical silver. This is one reason tobuy physical silver only.

Investing in bullion or silver coins?

There are many ways toinvest in silver metal. You can choose to buy ingots, French silver coins or modern silver coins.

• Silver ingots have the advantage of being made of pure silver, stamped with the approved smelter's mark, weight, silver title and serial number. So you know the value and can easily resell it.
• Modern silver coins are usually made of fine silver and match bullion weights. They are minted by various mints around the world, and their representations are often pleasing to the eye. However, they cost much more than their silver value.
• If their fine silver content is not inscribed on them, French silver coins are known the world over, so you can easily resell them. In addition to their historical value, they are often much less expensive than modern coins, as you don't have to pay the manufacturing costs.

Abacor's experts are at your disposal to advise you on your choice of bullion and silver coins.