How to Improve Your Portfolio Returns Buying and Selling Silver

How to Improve Your Portfolio Returns Buying and Selling Silver

The world’s major stock markets have run into an extended period of volatility. Volatility in the markets means wide price fluctuations both up and down, creating uncertainty for investors and ultimately leading to losses and periods of little growth.

It’s a situation that can scare off new money from entering the stock market. If you’re reluctant to invest in stocks now, you’re likely not alone.

That doesn’t mean that you shouldn’t be contributing to your investment portfolio. With inflation high, you can feel trapped between two difficult places. Letting your savings sit in cash means you lose out to rising costs. Investing is usually the most effective tool you have for preventing loss of purchasing power, but you need to find assets that will hold on through the turmoil.

Invest in Silver

Silver is one asset that has historically done well when other markets are struggling. Buying silver coins and bars is one alternative that can help you increase your holdings during times of economic stagnation or even recessions.

Investing in silver can help you diversify your portfolio out of stocks and bonds. Over-exposure to any single type of asset can damage your portfolio’s performance, but when you spread risks around, you increase your ability to protect your savings from a wider variety of economic conditions.

How to Buy and Sell Silver

In order to get the most money from investing in silver, you need to know what to buy and where to sell silver when you’re ready to liquidate.

There are several ways you can buy silver. The simplest and securest option is to buy physical silver coins or bars called bullion. Bullion differs substantially from silver jewellery or junk silver. High-purity bullion is easier to sell and will sell at the best price per ounce.

There are also ways to buy “paper” silver where you don’t directly own it. Those options include investing in a silver ETF, futures, or even stocks in a mining company.

When it comes to selling, going to a bullion dealer is the best option if you purchased bullion coins and bars, but a bullion dealer can also offer great prices if you’re selling junk silver, jewellery, or collectibles. Compared to pawn brokers, a bullion dealer will often offer superior prices. It can also help immensely if they post their rates publicly.

Why Does Investing in Silver Make Sense?

The economic conditions of 2022 are making silver an increasingly appealing asset. Silver has several qualities that can make it the right investment for tough times:

  • Silver and gold are often used as inflation hedges. Both metals tend to rise during long periods of rising prices.
  • Silver has little to no correlation to stock markets, which is a great quality when markets are experiencing volatility.
  • There is increasing evidence that the world is entering a commodities super-cycle. This is a period of time when all commodities experience sustained price increases, including precious metals.

Silver remains a niche investment. It’s definitely for someone who is looking for alternative investments and is not afraid to find opportunities off the beaten path. When markets are tough, those who want market-beating returns have to try different things.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.