Everyone knows it’s on its way. A recession is as inevitable as the sunset, but unlike the setting of the sun, we don’t know exactly when it’s going to happen. There have already been early warning signs, such as the inverted yield curve on the bond market, a slow down in job growth, and non-existent wage growth as younger workers struggle to keep up with the cost of living.
When growth is down, it’s time to move your money into precious metals. Silver acts like a kind of portfolio insurance. There are a number of different silver products you can buy that will help your money ride out the recession. All of them have the inherent qualities that make silver a recession-proof investment:
- Elemental properties that make it essential to industrial and medical applications
- Thousands of years of use as a currency
- The confidence of investors when they lose faith in fiat currencies
How to Invest in Silver
There are several ways you can put your money in silver. Not all routes are created equally. Think closely about your goals and choose the method that helps you meet them:
Exchange-traded funds. You buy into the fund which itself buys silver products. It’s a quick way to buy silver on paper, and convenient for anyone who’s not worried about counter-party risks.
2. Mining and Streaming Stocks
Investing in mining companies can be tricky business. Always remember, you’re investing in the company, not the price of silver, and the silver mining industry has been in trouble recently, as mines have been suspended and new deposits are increasingly rare.
3. Silver Coins and Bars
Silver is tangible money, which puts it in a different class than most other assets. Assets like cash, stocks, and bonds are all basically promissory notes in digital form. You don’t have the certainty of hard assets like silver.
As such, they are all vulnerable to inflation, which is the slow erosion of the value of a dollar. Inflation happens in part because costs go up (people always want to make more money from a transaction), and in part because there’s an erosion of faith in money.
It is easy to buy silver bars and coins, as you can quickly go online and find a silver dealer. You also get the peace of mind of knowing where your investment is.
Why You Should Invest in Silver
Silver is cheaper than gold – that’s been true for just about all of history, but silver has been especially undervalued since the end of the last bull market. That undervaluation is an opportunity to get into the silver market. While gold can be a good place to put your money to protect it, silver offers an opportunity for major growth.
Take the recession warning signs seriously. Putting your money in stocks right now is a big risk. Why go along with the crowd when you can take advantage of a downturn and invest in silver products that will withstand the turbulence? If you’re worried about making the right choice, it might be time to consult with a real investor like Erik H. Gordon. Professional investors and advisors can help guide you better.