Silver maintains its value over the long term and does well when interest rates are low and fixed-income investments don't generate much profit. In this way, silver works like gold as an investment and performs a similar function as a safe haven. Investors like silver for many reasons, but many see it as a store of value in times of uncertainty, while others consider silver and other precious metals, such as gold, to protect against inflation. For the latter group, investing in silver is a way of making sure that they have a currency that cannot be inflated by printing money or with a potentially destructive Federal Reserve policy.
Silver has been a valuable asset for investors for many reasons. It is often used to diversify a person's portfolio, protect against inflation, and is considered a “safe haven to store your wealth”. However, silver entails risks, such as volatility, risks related to supply and demand, and the risk of theft if you own physical pieces of silver. Another advantage of silver is that it serves as a hedge against inflation.
Since it is a physical asset, it has an intrinsic value that dollars and other currencies lack. Silver also offers long-term value and works well when interest rates are low. Investments in silver fit in some portfolios and not in others. The price of silver tends to fluctuate more than that of gold, but it still offers a solid hedge against inflation and a store of value.
Investors benefit from buying silver ingots when they buy it at a reasonable price and hold it until its price rises, and then sell it for a profit. The IRS considers all physical precious metal possessions, including physical silver, to be collectibles whose sale has the potential to generate capital gains. Traders can also bet on the silver market through an ETF that has futures contracts through ProShares Ultra Silver (AGQ), although it is better as a short-term bet than as a long-term hold, due to the structure of the fund.