For many investors, especially newer ones, it seems that one of the biggest decisions they have to make is whether to buy gold or silver from this website. The time spent debating this question could be time wasted, however, because all the smart investors know that you can have gold and silver instead.
It’s quite true that silver isn’t as valuable as gold and that its value fluctuates more widely than gold’s but it performs differently and if you know what you’re doing, silver can be a valuable asset in your portfolio.
More volatility means more opportunity
While silver isn’t as stable and secure as gold due to its wider and less predictable fluctuations, it offers more opportunities for buying and selling for profit. Silver is a more speculative investment than gold, which, of course, means riskier, but done right, investing in silver can turn around some great profits. This metal is known for sudden upswings in value as much as sudden downswings and it has on occasion outperformed gold (not often, it’s true, but it has happened).
Silver as a long-term investment
The Internal Revenue Service (IRS) deems precious metals as a collectible for tax purposes. If you make any gains on collectibles that you’ve held for less than 12 months, then these gains are taxed as ordinary income and given the same tax demands as short-term capital gains. If you hold the collectibles for more than a year and then sell them at a profit, then they’re deemed to be long-term gains and they’re taxed at a maximum of 28%. If you’re in the federal tax bracket of 28% or more, your net long-term gains here will be taxed at 28%. If you’re below the 28% bracket then your net long-term gains will be taxed at your usual rate.
Silver as a portfolio diversification
It’s a good idea to buy and own silver bars and coins because it can be a good way to expand and diversify your investment portfolio. Diversification spreads your risk and helps you to protect yourself against other investment vehicles taking a sudden dip. Experts think that silver will carry on performing well and strengthening in price, especially as it has lots of uses in industry, even if silver jewelry goes out of fashion for a while.
Silver can be easier to exchange than gold
Hopefully the uncertain feelings a lot of us have about the global economy will turn out to be just that – feelings. However, you can’t put a price on peace of mind and many people are choosing to buy silver not just to invest but to use it as a form of currency in case of a big global crash. Gold often isn’t as flexible as silver here because it’s worth more, so even a gram bar is worth more than a few groceries. A silver ounce bar, however, is ideal for small purchases, whereas gold bars and coins are better for larger items or exchanges.
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