Silver has been highly correlated with gold and is expected to change at any time. Gold and silver both have a history of being used as money for a long time and will continue to do the same. Both have some unique qualities that tend to showcase them to the outer world as economic items. Silver though mainly used in industries, is also used for investment purposes, though not the same extent as gold. If there is a recession, the banks will not be buying silver, and thus it gives more power to gold over silver in the foreign market. Silver and gold will continue to go up and down, but silver will be more promoted. Thus the Silver dollar economy will see high rises in the coming future.
History of Silver
Silver was most popular in the market from the early 1980s to late 2000. Silver mining began around some 5000 years ago. The early days of silver were a valuable resource for the then rising civilizations in East Crete and Greece. With the Moorish invading Spain, silver rose to other countries, mostly in Central Europe. Slowly is spread to other parts of the world. In the last few centuries, new technologies have contributed to the massive roll out in silver production. They included mining, dewatering and improved haulage. Further advancement in mining enhanced its ability to separate silver from other metals and ores, making it quite simpler to handle larger volumes of ores containing silver.
While silver and gold tend to be similar, silver is considered far more volatile than gold, so we must understand this while investing. It would be best if you always had gold as your base investment. At the same time, silver positions make for a more irregular profile. This is why it is better for trading. The best thing about silver is that you can always decide to hold on to it if you don’t make quick money out of it. If you are buying silver and the price slashes down, you can be sure that it will rise again and be worth something in a few years to come. Still, when in terms of trading, silver is always better than gold because of its volatility.
Why Silver Dollar Economy?
If gold is considered the best, then why use silver, This is the real question that many have in mind. Also, why not make investments in paper money than in silver. Many such reasons are listed as below:
- Smaller Denominations- One big advantage is Smaller Denominations are possible with silver as it is much cheaper and easily available than with gold.
- Silver is most marketable with small transactions.
- Silver tends to rise higher when the value of metals rise.
- Its value is far fast-growing than paper money. Hence it will return better returns.
Silver is volatile, and it will go down in bigger percentages when both metals are going down. Similarly, it tends to rise quickly when these metals are rising.