By Ron Pringle
As the UK elections fast approach, the likely shift in leadership may change policies on trade, taxation and public spending. This uncertainty often leads to fluctuations in currency values, stock markets and investor confidence.
In such times, precious metals are typically seen as “safe havens”. While gold has a longstanding reputation for presenting wealth during economic downturns, silver’s extensive industrial use gives it an additional layer of appeal.
Silver is not only valued for its monetary and decorative purposes but also plays a critical role in various industries, including electronics, solar energy and medical devices. These growing industries may drive silver prices to new heights, making silver a potentially more lucrative investment.
Beyond its industrial application, however, silver has a rich history as an investment asset. Traditionally, silver items have been cared for and passed down through generations as a form of financial security during hard times…hence the phrase, “selling the family silver.” It’s far from shameful but rather what it was originally intended for by one’s ancestors. This practice highlights silver’s enduring value and its role in wealth preservation. Unlike fiat currencies, which can be heavily impacted by policy changes and economic turbulence, silver tends to maintain its value over the long term. In fact over the past five years alone, gold has increased by roughly 70%, while silver by an impressive 90%. Both significantly beats the 5 year FTSE increase of roughly 10%. (Source: www.gold.co.uk)
Of course, none of us have a crystal ball to predict the future, least of all me. What we do know however is that change is likely and with change comes an element of economic uncertainty. As history has demonstrated, gold and silver have served as safe investments during such periods.
However, please do not limit yourself to investing in bullion bars or silver funds. Useful and decorative pieces may be more fun to collect. I, for one, enjoy eating with my silver cutlery daily. On the other hand, bullion bars make terrible soup ladles!
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