The pros and cons of investing in silver

What are the pros and cons of investing in silver? When you think of investing in precious metals, you probably think of gold first, but silver is also an interesting option in many cases. This precious metal offers advantages that gold does not. The experts at The Silver Mountain have listed the key pros and cons of investing in silver for you, so you can make an informed decision.

Silver has properties that make it attractive as an investment, especially in times of economic uncertainty. Like gold, silver retains its value in the long term, but it is generally cheaper and therefore accessible to a broader group of investors.

Silver is not only an investment product but also has many industrial applications. Because industrial demand remains fairly constant, the price of silver is maintained in the long term. This contributes to silver’s appeal.

Besides advantages, there are also disadvantages to investing in silver. In the short term, silver is subject to price volatility, which means your return can fluctuate. Want to invest in silver bars? Keep in mind that you have to pay 21% VAT on silver bars.

Why investing in silver can be interesting

Despite price volatility and VAT, investing in silver is surprisingly accessible. It offers several pros and cons. Silver is a durable precious metal that retains both its shine and value, even after many years. That makes silver popular not only with investors but also with collectors.

In times of economic or political uncertainty, silver provides an asset that maintains stable value. This effect is almost as powerful as gold. Another advantage of silver is that it has a lower entry price than gold. As a result, silver is ideal for those looking to expand their portfolio without making large investments.

Silver is a valuable precious metal that offers protection during economic uncertainty. Moreover, silver is accessible to many investors.

Advantages of silver as an investment

Silver has proven to be a valuable investment in the past. In times of economic uncertainty, the precious metal remains strong and retains its purchasing power. Thanks to the lower purchase price, silver is a good investment for experienced investors looking to diversify their portfolio. For novice investors too, the lower-priced silver is easily accessible.

You don’t need a large capital to invest wisely in silver. With silver, you choose flexibility and a good investment that retains its value, even amid market fluctuations.

The impact of industrial demand on silver

Silver remains an attractive choice for investors looking to strengthen their portfolio. This precious metal not only offers value stability but is also more affordable than gold. This makes it appealing to new investors. Due to growing demand from various industries, such as the solar energy sector, the price is being driven up.

Due to limited supply, analysts expect a price increase in the coming years. For example, Swiss bank UBS forecasts that the silver price will rise to $36 to $38 per ounce in 2025. Studies also show that global silver reserves may be largely depleted by 2050. Scarcity will cause the price to rise significantly by then.

Disadvantages and points of attention when it comes to silver

Are you interested in silver bars? Keep in mind that 21% VAT is charged on silver bars. Silver coins fall under the margin scheme, where VAT is only calculated on the seller’s profit margin, such as The Silver Mountain’s.

For silver bars, VAT is charged on the entire sale price, making bars less attractive for private investors. Are you making a business investment? Then VAT can be reclaimed, which makes investing in silver bars interesting for entrepreneurs.

Buying silver: tips for beginning investors

Investing in silver thus has both pros and cons. By carefully weighing these and aligning your investment with your personal financial situation, you can determine whether silver is a good choice for you.

Want to buy silver for the first time? Then check out our silver guide, which summarizes all the important information you need to know when buying silver. Want to start investing in silver and learn more about the pros and cons? At The Silver Mountain you’ll find a wide selection of silver coins and bars, with transparent pricing and expert advice. Need this advice? Then get in touch with us!

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.