Traditional wisdom has it that you should buy a home as soon as you can afford it. After all, when you rent, you are essentially sending money into a void. You’re paying someone else’s mortgage and, when you leave, you’re left with nothing to show for it.

However, life in 2022 is slightly different. Inflation has led to extreme price increases across the board, and many people are struggling to pay for the basics. The higher your fixed costs are, the less you’ll have to manage these prices. Owning a home comes with many fixed costs.

Homeowners insurance is one major example of a cost you can cut if you decide to rent. Renters insurance is much cheaper. Homeowners insurance is expensive because it covers the full value of your home itself. On the other hand, renters insurance only covers your possessions and it is unlikely to cost you more than $200 a year.

But even if this inflationary cycle ends and prices return to normal, is renting a home a smart financial decision in 2022? Are there reasons to rent even if you have the money to comfortably buy a home?

The Post-Pandemic Housing Market

Over the past two years, the housing market has gone against many people’s expectations. Prices started rising in the middle of 2020 at a remarkable rate. That has only continued, in spite of a number of milestones at which it was expected to cool.

A big factor that was expected to slow the housing market was the increasing interest rates set by the Fed to curb inflation. Yet, so far, housing prices have risen regardless. As such, a house will cost you more than ever before at the moment.

This has been good news for those who invested over the past two years. They bought at high prices and have only seen the value of their assets increase. You might think that investing in a house now, at these high prices, is worth it. However, the facade may be starting to crack.

Is a Housing Crash Imminent?

As we approach the end of July, economists are warning that a housing ‘correction’ has begun. Prices are no longer rising in many of the hottest markets. In some places, prices are already going down. As of yet there have not been any major crashes.

But there are fundamental issues at the heart of the housing market that may indicate a coming crash. One of the reasons housing prices increased was that demand was relatively good while supply was limited. Construction delays caused by the pandemic had led to a massive housing shortage.

Now, demand is dropping rapidly and houses are still being built. There are many houses already standing empty. According to the basic principles of supply and demand, prices will almost certainly drop. It remains to be seen whether this will merely be a correction or whether prices will plummet.

Renting in 2022

Renting in 2022 is also extremely expensive. The cost of rent has been rising rapidly over the past two years as well. In this context, renting might not seem like a good financial decision, when you could be pouring that money into a new home. With inflation cramping your budget, paying money into a void feels like a huge waste.

However, if there is going to be a crash – or even a correction – it may be worthwhile to continue renting temporarily. Not only will you save money on things like insurance and maintenance, but you may also save yourself a lot of money on a future mortgage. In a month or two, prices may already be significantly lower, and they may only drop as the year continues.

Furthermore, eventually interest rates will come down, and you may be able to get a much better mortgage rate. Buying now may leave you with significant buyer’s remorse.

A month ago, many experts would have been cautiously optimistic in advising people to buy homes. But today, buying a home is seen as a risk. Prices are unlikely to increase much further, and there is too high a chance that they will crash. Continuing to rent for the next few months might be the best financial decision you make.

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.