WHY BUY SILVER IN 2024?

GROWING DEMAND AS AN INDUSTRIAL METAL

The difference between silver and other precious metals is its growing demand as an industrial metal. Each year, more and more uses are discovered for silver’s unique chemical properties, ranging from biotech to electronics, and there is a growing concern that in less than 15 years, there will be no silver left.

There’s simply not enough silver to meet this growing demand, which makes physical silver an attractive investment.

After silver is used within industries, like medicine or photography, it becomes useless. Consequentially, the market is starting to realise that if silver supply falls to zero, this metal will become the most precious of them all.

AFFORDABLE AND UNDERVALUED INVESTMENT

For many centuries from Roman times, the ratio of gold to silver was historically around 12/1, meaning 12 ounces of silver would buy 1 ounce of gold. But this ratio began to fluctuate in the 1900s. Over the last 100 years, the ratio has been lower than 20 and higher than 100, shifting up and down on the back of rises and falls in the price of both commodities. When the gold/silver ratio is high it is often taken as a good time to buy silver, indicating that the silver metal is undervalued in relation to its pricier relative.

The ratio in December 2021 was 77:1 implying that the silver price is massively undervalued.

Many analysts and experts believe that silver should be trading at five times the amount it’s trading at the moment.

Demand is underpinned by industrial uses, investment buying, jewellery, tableware and photography. This demand was under pressure during the pandemic when industrial use slowed, but it has recovered during 2021 and is expected to grow 15% in the year.

BENEFITS OF SILVER

PRIVATE INVESTMENT

Unlike shares or banking, there is no requirement to register ownership of silver. Physical silver is one of the only forms of private investment left today.

INHERITANCE & LEGACY

Purchasing physical silver is a private store of wealth that allows clients to effectively transfer wealth to loved ones (subject to the 7-year inheritance tax rule).

INSURANCE AGAINST INFLATION

In times of inflation, silver’s value tends to increase in line with other products and commodities.

TO DIVERSIFY YOUR PORTFOLIO

Silver tends to increase when other commonly held assets fall in value, which is why experts recommend investing in precious metals as part of a diverse portfolio.

CAPITAL GROWTH AND RETURNS

Silver remains one of the best performing UK assets of the 21st century growing over 10% per year on average since 2000, compared with 4.1% for the FSE 100 and 5.3% for property (UK house price index).

TAX ADVANTAGES

Individuals that purchase physical silver within the EU are required to pay VAT. However The Pure Gold Company is able to supply physical silver free from VAT when stored outside the EU, and Capital Gains Tax when purchasing coins minted by the Royal Mint.

SITS OUTSIDE THE BANKING SYSTEM

Individuals who buy silver are essentially removing it from the banking system and any counterparty risks associated with it.

UNIVERSAL CURRENCY, EASY TO LIQUIDATE

Physical silver is recognised and sought after all over the world and as such can be exchanged for global currency, goods or services and can be easily liquidated.

RARITY

Silver is a finite resource. The small quantities of silver used in industrial processes and products are not often recycled, which means some of the silver will no longer be in circulation. Demand grows, supply may not be able to keep up.