When trying to decide how to divvy up your assets within your investment portfolio, there can seem like a lot of options to choose from. The market for investment options is broader than it has ever been and continues to grow, becoming more and more complex by the year. 

Many investors will choose to play it safe only, investing in your traditionally touted mutual funds, market indexes, or even going as predictable as putting their money into a savings account or CD, although the expected return may be lower. 

The reality is that the market expands far beyond these safer assets if you’re open to a bit of risk. With risk, of course, comes opportunity for reward, namely in the form of potential upwards volatility if you pick your investments wisely.

It’s this incentive that leads investors to more volatile assets like individual stocks and, most prominently, alternative investments. Alternative investments can be one of the most common forms of growth investing on the market, with precious metals such as gold and silver usually leading the pack.

Both of these can present a viable investment vehicle, but silver is the primary option for an investor seeking potentially more volatile growth. If you find yourself in the right financial situation, and if your risk tolerance and goals align with this market, it may be a solid investment for you.

An Overview of Silver and 3 Reasons to Invest in It

Silver is one of the most valuable metals around. Silver is always going to be an important alternative asset to anyone who is interested in investing in something other than traditional investments. 

Silver comes in various different forms. There are silver quarters, various forms of jewelry, silver bars, or even investing in silver on the market without actually needing to physically purchase, transport, and store it. 

Silver has been tied to gold for the majority of its life, being seen as the more popular precious metal’s counterpart in the alternative investments market. Gold has always been more expensive than silver, making it the harder to obtain asset and the overall availability of it is less than silver.

Silver is Cheaper Than Gold

As is with any asset, the market determines its value. Gold is more valuable than silver because the market demand says it is, and that’s likely how it will stay. Gold is rarer too, which also contributes to the price. Because of this, it makes silver more obtainable to investors. Not every investor can afford to buy into gold significantly or designate a lot of funds to it. 

Silver on the other hand, being cheaper, presents a more viable investment for those with less funds to allocate to an alternative asset.

Silver is More Volatile Than Gold and Presents Growth Opportunities 

Depending upon who you are, the fact that silver is more volatile than gold or other alternative investments can either be a positive or a negative for you. Despite your perception of it, it can always be turned into a positive by using it to your advantage when investing in it. 

Silver is more volatile than gold and other assets because of the smaller market it has, and ultimately the lower market liquidity that accompanies that situation. This makes the price more susceptible to movement with relatively small dollar amounts invested, or with trends that occur when the market swings. 

This can either hurt your investment or help it immensely—it depends entirely on how you play the market. Done right, though, this can present a tremendous investment opportunity with the chance to make significant profits. 

Silver Can Help to Hedge Against Inflation in the Long Term

Despite silver’s relative volatility, it can still present itself as a viable option to store your money in for the long-term as well. When you buy silver, you will be storing the value of your money and also hedging against inflation and the devaluation of the dollar that will inevitably occur over time.  

Silver, like gold and other alternative assets, generally come with what’s known as an inverse relationship to paper currencies. As relative consumer confidence goes up and down, and some of the value of currencies is naturally eroded over time, alternative investments can present a solid back up store of value to hedge against this situation, making for a great reason to invest in silver. 

Creating Your Silver Investment Strategy

When you buy silver, you should be clear about how much you plan to invest. This will likely depend on your personal financial situation, and just how much you wish to allocate to this alternative investment. 

Once you’ve determined how much of you’d like to invest in silver, you can then go about picking the right brokerage or investment venue for you, and begin your own experience in the precious metals market.