The Role Of Silver In Your Portfolio

[source: reddit.com/r/Wallstreetsilver]

For thousands of years, silver has been prized for its rarity and beauty. However, it wasn't until around 3000 BC that an efficient method was developed to extract silver from ores that also contained lead. Besides holding it in your portfolio, silver is useful as jewellery, currency (coin), and for industrial uses. As mining technology advanced, silver production increased dramatically, but never to the point where there was an overabundance of the metal and prices plummeted. It's because silver has always been in high demand all the time.

The Role Of Silver In Your Portfolio

Silver price is not going to moon as much as risky assets. The price is relatively stable compared to most assets in the market. If you're looking to get rich quickly, you should be looking at emerging tech stocks or cryptocurrencies.

But that's not to say silver doesn't have potential as an investment. You could get 10x the return if you bought silver at the best trading days (the bottom) and sold at the peak over a few decades. It goes without saying that buying low and selling high is difficult to achieve. Besides, we're talking about buying the bottom and selling the peak, which is nigh impossible. It requires extreme patience and consistency to attain astronomical gain.

Unless Redditors were right about the silver manipulation and hoarding of silver will eventually collapse the silver derivative market, thus sending silver to the moon #silversqueeze. Otherwise, it's safe to say you can't get extremely wealthy investing in silver.

If the #silversqueeze turned out to be wrong, you'd be left with a pile of silver bars sitting in your basement. But hey, that's not that bad at all, considering that silver is one of the best stores of value and inflation hedge.

[source: reddit.com/r/Wallstreetsilver]

Silver will always have value, even if it doesn't have parabolic gain. With the m2 money supply inflating like crazy these few years, silver should be fine around the $15-$20 price level; anywhere below that should be oversold.

Just know that market has cycles; things tend to be oversold sometimes, which is caused by not just psychological factors but also mainly because of debt. During a bear market, some people have to sell commodities like silver to repay their debt, which causes the silver price to drop. But if you wait long enough, the price will eventually come back up; that's what a store of value is all about.

During the Wallstreetbet GME saga, Citadel tried to bail out Melvin Capital by investing in the hedge fund. At the same time, Redditors were trying to short squeeze silver, but they soon found out Citadel is the 5th largest holder of SLV.

The moral of the story is that silver is a common hodl for most whales, including institutions, hedge funds et al.. Most countries have silver as a reserve as well. With a $1 trillion market cap, many use cases, fixed supply, safe haven nature, and being recognized by almost everyone in the world, silver truly is a safer asset in the portfolio as a store of value.