Silver Bullion in Canada

The main risk when investing in silver bullion is that you could lose an item such as a silver coin or a silver bar if the value drops due to market changes. 

    

Another risk factor is that the price of silver, like gold, is influenced by industrial demand. If the development of the price of silver is poor or, in some cases, industrial demand is suppressed, these are the same factors that can lead to instability in the financial markets. If you buy silver during a big price rise, as the average investor does, you could be bracing for a big price fall.

    

What is certain is that silver should not be viewed as a long-term growth asset, as it would be in a bond portfolio. Silver tends to outperform equities in the fall, but its long-term prospects are not suitable for long-term investments. When silver prices crash and take off, it is best to limit portfolio holdings to not more than a few percentage points.

    

Regardless of the price, you have about as much protection in silver as in gold. We have seen the price of the silver rise and then reverse course.

    

Remember that silver coins, ingots, and bars are sold all over the world. Silver, like gold, is a true form of money, and it cannot be reproduced. Instead of selling an ounce of gold, you can redeem small denominations of silver.

    

Silver is a small market that is actually so small that very little cash is moved around the industry, which affects prices more than other assets, including gold. This greater volatility means that silver could fall more than gold in a bear market.

    

However, this is not the whole story, because like gold, up to 30% of the silver used in industry is destroyed in the manufacturing process and the product is thrown away after use.

    

    

Many invest in silver and gold stocks because of the logic that metals tend to perform better in a stock market crash. Silver is widely used in the industrial sector, making it more likely to be tied to the performance of a large economy.