Silver is a valuable commodity without a sliver of doubt. Since time immemorial, it has helped investors and traders achieve financial freedom. As a matter of fact, the price of Silver was as high as $17.95 per troy ounce at the start of September 2022. This price point reflects a sharp increase in Silver’s price from the previous year. 

| In 2021, Silver gained 32% from its lowest price point to reach its year high of $29.42! Considering this, it’s not a bad idea to trade silver online. |

However, a lot of people have reservations when it comes to trading Silver. But it can be quite easy if you have access to the right information. Therefore, we’ve brought you this blog post to bust the myths around Silver forever. 

Continue reading this article to understand why trading in silver is necessary. First things first though.

What exactly is Silver trading?

Silver trading online is the practice of investing in a precious commodity. For instance, you can invest in Silver and Gold with a secure online trading app like ISA Bullion and start trading instantly. 

For all intents and purposes, Silver serves as an excellent commodity to trade for those people who do not have the capital to trade Gold online. That’s not to say many people who can afford Gold don’t trade Silver. Both commodities can be highly profitable when traded smartly. 

To start trading Silver and Gold, download the ISA Bullion app for iOS and Android from here. 

History of Silver

Silver as a commodity has been linked to humanity for approximately 6,000 years. Archaeologists discovered the Babylonians developed silver mining methods around 2500 BC. However, it wasn’t until 550 BC that the precious metal would be used as a currency. 

We can thank the Romans for innovating the use of silver coins. Then, civilizations like China and Japan began using silver coins for international trade. Finally, the importance of silver as a currency came to the fore in the United States with the minting of silver coins in 1794. 

The coins were in circulation for over 80 years until they were replaced by the gold standard in 1875. The introduction of Gold enabled it to be converted into the US dollar which reduced silver’s value. 

Why you should trade silver in 2022

Silver remains an excellent commodity for trading online despite being second to gold. Here are some reasons why you should consider trading Silver online in 2022.

     1. Silver is cheaper than gold

Being second place does have its advantages. Silver has the same financial function as gold. It acts as an inflation hedge, preserves value, and increases its price. It also has the added benefit of being more cost-friendly. 

Furthermore, Gold is a demanding investment and costs an estimated 75 times more than silver. Its price has kept climbing from $35 in the 70’s to over $1900 during the 2020 pandemic. Buying a brick of physical gold weighing 1000g will cost you nearly $55,000. You might be able to handle initial costs but having extra cash is a huge trading benefit. 

That’s where silver comes in. This commodity has stayed below a $50 price for over 100 years. Pricing in 2020 also went as low as $13. These figures mean you can buy a bulk of the silver and still have the finances to buy other commodities. 

     2. The price is always on the rise

Silver continues to gain prominence in the manufacture of different items. Its chemical properties and use as currency increase its global demand. That said, there’s the negative effect of supply reduction. 

The scarcity happens because silver extraction is disadvantageous to the economy. As a result, you can make a profit by owning and trading silver online. 

     3. Silver acts as an Inflation hedge

Every sector of business is bound to experience inflation at some point. It could be low inflation or high inflation rates. In any case, owning silver gives you access to enduring value during those uncertain times. 

You don’t have to worry about the inflation effect on your cash when you trade in silver online though. The banks can store your money, but that won’t protect its value from dropping. With banks, you will lose your purchasing power. However, silver trading ensures you adjust to the market forces automatically. 

     4. Build Portfolio diversity

Investment has never been a get-rich-quick scheme, which won’t change now. Instead, it’s a process that requires patience and analysis to make smart financial moves. Diversifying your portfolio is always a good move in this sense. 

Putting all your eggs in one basket could damage your finances if things go south. The best trading move is to spread your risk across various commodities. It reduces the chances of your portfolio failing. You also get a chance to mitigate overall investment risks. 

Diversifying your portfolio with silver also gives you extra investment market knowledge. You have a chance to get insights on trading new commodities and making more profit.

     5. Extra source of income

Achieving financial freedom and stability from a single business can be difficult. An alternative business venture will become necessary to help you increase your income. Trading in silver online will give you access to new money-making routes. 

This practice requires research and long hours of learning, but it’s worth it. It’s also an attractive option if you’re earning from a third-world country. Your economy’s fiat currency might be weak, and silver can give you access to foreign currencies. These have more value and will increase your purchasing power.

     6. Opportunity to profit from speculation

A close examination of silver prices reveals a volatile price chart. The price ceiling stayed below $50 for a century, but April 2020 saw prices fall below $15. So, it’s $28 in August 2020 and March 2021. As of May 2022, the price fluctuated between $20 and $22. 

You can master these charts and use the information to speculate future silver spot prices. Then, you can build a profitable online trading system based on price movements. Of course, changing your trading strategy is possible to make profits from price increases and drops.

     7. Increase in regular use

It’s difficult to see an item that doesn’t have a bit of silver. Precious metal is used in the manufacture of a variety of items. These range from batteries and microcircuits to jewelry and medical equipment. 

Silver is also at the forefront of various technological innovations. For example, its use in photovoltaic cells for solar panels was nearly zero in 2006. However, the situation has changed with installation prices falling by 90%. Governments and consumers are becoming increasingly attracted to the cost-effectiveness of silver. Electric vehicles also use an estimated 25-50g of silver in each vehicle. This amount is almost twice what combustion engines use. 

Considering the heavy reliance on silver, you can invest in the commodity. You can also trade it to the highest bidder and make a good return. 

To start trading Silver and Gold, download the ISA Bullion app for iOS and Android from here. 

     8. Silver has a better performance rate than gold in bull markets.

The silver market is a very small one in the investment market. With this size, moving small amounts of cash through the market can affect market prices to a large degree. This impact is more than those caused by other assets, including gold.

With bear markets, silver prices also go lower than gold. The opposite is the case with bull markets, where silver soars faster and further than gold. Faced with this reality, you need to maximize your profit opportunity and Silver is the best way to do that. 

Ways to trade in silver online

There are many investment options when trading silver online. These include:

ETF portfolios

These are shares or company bonds that are invested at once. For example, on silver, the ETF portfolio will contain bonds and shares of companies. These corporations mine and process silver which gives the investor a direct financial connection to the commodity.

This investment method is passive and long-term, with possible dividends. That said, the investment returns are subject to the company’s fortune. The trader suffers a loss if the company has a financial crisis and the share value drops. 

CFD contracts

Differential contracts are speculative papers created by the broker. The price is obtained from the spot price of silver or the price of future contracts. It’s a smooth trading system because the trader speculates the commodity price. This prediction happens without owning silver.  

With differential contracts, it’s not all about predicting price rises. The trader can also expect a price fall. This increases the trader’s opportunity to make a profit. The benefit is regardless of the market situation. However, it’s important to predict the price direction for silver correctly. 

CFD contracts are also a preferred trading form. This is because they can be used to trade larger silver amounts. This volume surpasses the trader’s original deposit. Differential contracts are like futures contracts. They are both used to speculate silver prices. That said, the former cannot expire, unlike its counterpart. 

Brokers artificially create both contracts. So, you’ll need to invest with a reliable broker with a good reputation with other traders. It also needs to be one with transparent trading conditions. ISA Bullion is the perfect option because our platform has a good trading reputation. We can also guide you through the entire trading process.

Trade with ISA Bullion Today

Silver might not have gold’s appeal, but it’s an investment with good returns. It also gives you more exposure to the trading market. ISA Bullion is committed to giving you the best access to trading prices and updates. So, start trading your physical silver bullion today and reap the benefits of having a precious commodity in your portfolio.

To start trading Silver and Gold, download the ISA Bullion app for iOS and Android from here.