Looking Into Precious Metals To Hedge In The Current Market? You May Want To Check Silver Out

Gold may not be the only safe haven investors can hide out in during tumultuous economic times. Silver also seems to have proved its mettle. 

There are several reasons why silver can be a sound investment for many, one Lear Capital predicts will see strong growth this year and beyond. For starters, it offers investors diversification beyond stocks and bonds like other precious metals. Silver also tends to increase in price during periods of high interest rates. Just like gold, silver is seen as a store of value, one that could also potentially be used as a form of currency in extreme emergencies. There’s also a scarcity of it, which means the price has room to appreciate. 

Silver Demand 

“Silver has become a highly in-demand asset, yet the available supply hasn't vastly increased," says Kevin DeMeritt, founder and chairman of Lear Capital, which sells gold, silver and other precious metals. "Silver is also needed for industrial and clean energy processes — which could help drive its price to more than $30 an ounce this year." If DeMeritt’s prediction proves true and silver reaches $30 per ounce, it would be a nearly decade high for the precious metal. Even if there’s a recession, DeMeritt is confident silver can weather an economic downturn and hit his target price. 

Part of what could make silver an attractive investment is that there isn’t a lot of it left. Most of the gold mined in the U.S. throughout history is still available, but that isn’t the case with silver. Much of the silver mined has been used and isn’t recoverable. The global deficit of silver reached an all-time high in 2022 at 237.7 million ounces as the demand for silver rose 18%. That isn’t ending anytime soon, with demand projected to increase in 2023 and beyond. 

There’s An Industrial Play 

Silver isn’t only used for jewelry or to make coins and bars. The precious metal is needed in the manufacturing of electric vehicles, electronics and solar panels, among other things. Industrials are big consumers of silver, especially ones operating in growing markets like solar panels and EVs. The market for solar panels in the U.S. is projected to reach $44.77 billion by 2030, growing at a CAGR of 15.3% from 2023 to 2030.  Meanwhile, EVs are projected to make up about half of new car sales worldwide by 2035.

Silver’s use in industrial applications is also the reason why it's been outperforming gold this year. Gold is mainly used for jewelry or as an investment, but silver is a necessity in many everyday applications, and that isn’t changing anytime soon, making it an even rare precious metal. 

Buyer Beware

When it comes to purchasing silver, investors have options. They can purchase silver coins or bars or invest in the Lear Advantage IRA, which is a Self Directed IRA backed by the fortifying power of physical precious metals including gold, silver and platinum. It can be difficult to get an accurate price for silver, which is why it's important to work with a reputable dealer. Lear Capital empowers investors by giving them access to its silver price chart, which shows viewers the real-time spot price in the silver bullion market. You can then purchase coins at those exact prices through the Lear Capital website. When you purchase through Lear Capital, you get the most up-to-date precious metal spot pricing available online. The Lear Capital chart also gives you the ability to search historical data so you can see the long-term trend.

Silver seems to be having a moment for good reason. The world is geopolitically unstable, the economy is uncertain and stocks are volatile. Investors have little place to use as potential safe havens and are turning to precious metals for cover. Silver may not come to mind first but it certainly deserves some attention. The white metal has recently outperformed gold, is used in several industrial applications and is scarce – all of which presents an opportunity for investors.

Featured photo by Scottsdale Mint on Unsplash.

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.