Both Copper and Silver have pros and cons when it comes to investing, but if you are looking to make a choice on one of them, which one should you choose? Here we explore a little on both of these metals.
Is Copper a Good Investment?
A little history on Copper.
It was one of the first metals mined and used as currency in the Bronze Age. It was the literal defining factor of power thousands of years ago. This is what made it stand out as having high value that has lasted through the years to the present, but it isn’t the only reason. Copper’s practical use and its properties also define the value of the metal.
- Copper Alloy
Copper mixed with other metals can produce Brass and Tin which have been essential in the production of “things” throughout modern history. Tools, parts and structures are a few of the important creations Copper made happen and its abundance made that not only efficient but also led to the production of applicable alloys for health properties, energy and the economy.
- Copper properties
Copper has unique properties that do not exist in some Precious Metals. This metal is easily stretched and molded, which was a defining factor in why it was so prevalent to use in the Bronze Age. Copper is also corrosion resistant. Resistance to corrosion allows the metal to maximize its chemical and physical properties to the fullest.
- Copper Applications and Uses
Copper exists in the household items we use every day. It’s in our electronics, AC units, plumbing, machinery, brakes, bearing, radiators and more. There are many more practical uses of Copper and the range of applications is highly widespread.
- Price Per Pound of Copper
Since Copper is abundant and its applications are growing, the price of Copper is becoming more stable and sometimes higher depending on the year and what’s happening in the economy or industry. Supply and demand is the biggest factor here.
Is Silver a Good Investment?
Silver is a common investment when the stock market has a less than positive outlook, in times of economic recession or political instability. Based on the fact that Silver is impacted by these different influences, it can be a good way to diversify your portfolio against real estate, equities or other paper securities.
Silver can also be used as an inflationary hedge. Silver can hold its value long term and fares well when interest rates are lower as well as when fixed-income investments aren’t earning as much.
It acts almost as a “safe haven” investment.
But Silver has many industrial applications such as being used in the manufacture of jewelry, batteries, medical equipment and circuits. It’s also used in many other innovative areas.
Silver has a very high conductivity, and is therefore used for many technological applications in solar and the electric car industry, which many analysts predict that this demand is likely to rise substantially in the coming years.
This means investing in silver could be a way to bet on the technological advances as well as clean energy.
What are some of the best ways to invest in Silver?
There are two primary ways of investing in silver: Directly (actually buying physical silver) and Indirectly (buying securities focused on silver).
Investors can buy physical silver in the form of bullion coins, bars, or junk silver bags.
But doing this requires you to store and preserve it. Not very practical.
A more practical way is to invest in things like these:
- Silver stocks: companies involved in the mining or processing of silver
- Mutual funds or ETFs that hold silver portfolios.
- Exchange-traded commodities (ETCs) that invest in silver bullion like the funds
So which one should you invest in?
The answer really is up to you based on your preference.
In theory they are both good investments that you can get into and probably should.
Now it’s up to you to make the move and invest in both or choose the one that you think is best for your portfolio.
Contact Us Now for More Information or Talk About Investing with TCI Partners
Call us at 470-363-4080
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