In times of uncertainty—whether economic, political, or both—precious metals like gold and silver become increasingly attractive to investors. As we move through 2024, the question arises: is now the right time to buy silver bullion, or should you be focusing on gold?
We will help you understand the current market trends for both gold and silver, explain the benefits of investing in bullion, and guide you on how to buy gold and silver bullion online.
Why Invest in Precious Metals?
Precious metals, particularly gold and silver, have been used as a store of value for centuries. Unlike stocks or bonds, these assets are tangible and not subject to the same risks associated with market fluctuations or corporate bankruptcy. Gold, often seen as a financial hedge, tends to perform well during periods of economic instability. Silver, on the other hand, carries both industrial and financial appeal, making it a more versatile investment.
The main reasons to consider investing in gold and silver include:
Hedging against inflation: As fiat currencies lose value due to inflation, gold and silver often retain or increase in value, helping protect your wealth.
Portfolio diversification: Holding a portion of your portfolio in precious metals can reduce overall risk, as they typically move inversely to stocks and other financial assets.
Geopolitical and economic uncertainty: In times of conflict or economic downturn, precious metals are often seen as a safe place, with demand increasing as investors look for stability.
The Current Market Sentiment
Recent trends indicate a renewed interest in precious metals, particularly gold and silver. In May 2024, gold hit record highs in US dollar terms, driven by rising political uncertainties and central bank actions. However, a similar positive trend has emerged in the silver market, although silver is still seeing more sellers than buyers.
The Silver Investor Index, which tracks investor sentiment, rose slightly from an all-time low in March 2024. While this indicates that more investors are selling silver than buying, it also signals a potential turning point. Silver’s price hit its highest monthly average since 2011, at £23.28 per Troy ounce, hinting at a possible rally as the market stabilises.
This recovery in investor sentiment could pave the way for future gains in silver prices, making now a great time to buy silver bullion. Although silver selling has outpaced buying recently, the margin between the two is narrowing, signalling that profit-taking may soon taper off, giving the silver market a chance to rally.
Is Silver Undervalued?
One of the most compelling reasons to buy silver bullion right now is the fact that it remains undervalued compared to gold. The gold-to-silver ratio, which measures how many ounces of silver it takes to buy one ounce of gold, remains historically high. This indicates that silver could have significant upside potential, especially if demand from industrial sectors continues to grow.
Silver is widely used in various industries, including electronics, solar panels, and medical devices. As these sectors expand, the demand for silver will likely increase, driving up its price. Additionally, silver’s lower price point compared to gold makes it a more accessible entry point for new investors, particularly those looking to start with smaller investments.
How to Buy Gold and Silver Bullion
If you're considering investing in gold or silver, it’s important to understand how to buy bullion safely and securely. Here are some key steps to get started:
Research reputable dealers
Look for well-established companies with a track record of transparency and customer satisfaction. One such company is Baird & Co., a well-known bullion merchant based in the UK that offers a wide range of gold and silver products.Choose your product
Gold and silver are typically available in two main forms—coins and bars. Coins are often preferred by collectors, while bars come in a range of sizes and are typically a more cost-effective way to buy bullion.Verify authenticity
Ensure the gold or silver you’re purchasing is of high quality and meets industry standards. Baird & Co. offers an extensive selection of gold and silver bullion products that are fully certified, making them a trustworthy option for investors.Storage options
Once you’ve purchased your bullion, decide whether to store it at home or through a third-party service. Many investors choose to store their bullion in secure vaults for added safety, which is a service offered by Baird & Co.Monitor the market
Keep an eye on the market and be prepared to adjust your investment strategy as needed. Prices for gold and silver can fluctuate based on global economic conditions, so it’s essential to stay informed.
Buying Gold and Silver Online
Buying gold and silver bullion online is a convenient and secure way to invest in precious metals, allowing you to take advantage of competitive pricing from the comfort of your home. Baird & Co. offers a user-friendly online platform where you can browse a wide variety of gold and silver products and make purchases with just a few clicks.
To buy gold and silver online through Baird & Co.:
Visit Baird & Co.’s website and navigate to their gold and silver bullion section. Here, you’ll find an array of coins and bars in different weights and designs.
Once you’ve selected the product that fits your investment goals, simply add it to your cart.
Complete your purchase through a secure checkout process, ensuring your financial information remains protected.
You can either have your gold or silver bullion delivered to your home or opt for secure storage in one of Baird & Co.’s vaults.
After your purchase, keep an eye on the market to track the performance of your investment. Baird & Co. also provides market insights and updates, helping you make informed decisions about your precious metal holdings.
What’s Next for Gold and Silver?
While gold has traditionally been the go-to safe-haven investment during times of economic uncertainty, silver is emerging as a strong contender, particularly given its industrial demand. Both metals are expected to perform well in the coming years due to ongoing geopolitical tensions, central bank policies and inflationary pressures.
Gold’s unique appeal as protection against economic downturns makes it a reliable choice, while silver’s lower price point and industrial applications offer potential for significant growth. As industries such as electronics, renewable energy, and medical devices continue to expand, the demand for silver will likely increase, driving up its price.
For investors looking to diversify their portfolio, a combination of gold and silver offers a balanced approach. While gold provides stability, silver offers growth potential, especially considering its current undervaluation compared to gold.
Investing in gold and silver bullion now could be a smart move, particularly if the market continues to experience price gains as forecasted. By purchasing these precious metals at today’s prices, investors can position themselves to benefit from future market trends. To purchase gold or silver, browse here.
