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5 reasons to invest in silver bars and coins right now
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Investors are facing a fair share of economic challenges right now, including persistent inflation and the high interest rates meant to temper it. And, there are other factors, like geopolitical conflicts and ballooning government deficits, that are further impacting the economy and the investing landscape.
Today’s unusual economic climate has, in turn, led many investors to look for ways to diversify their portfolios to protect their wealth and portfolio returns. One of the best ways to do that is to invest in safe-haven assets, like precious metals, to help offset losses from other investments.
While gold historically takes center stage in terms of precious metal investing, silver can also offer a unique value proposition. That’s because, like gold, silver has long been a hedge against economic turmoil — and there are other good reasons to consider adding it to your portfolio today, too.
Explore your top silver and gold investing options online now.
5 reasons to invest in silver bars and coins right now
There are a few reasons why you may want to add silver bars and coins to your portfolio right now. These include:
There’s a limited supply of silver
Unlike many other commodities, the supply of new silver is quite constrained. Most of the world’s silver supply comes as a byproduct from mining other metals like copper, gold and zinc. And, with few primary silver mines in operation, the supply cannot easily ramp up to meet potential spikes in demand.
This supply inelasticity could amplify future silver price increases if demand outpaces available supply, allowing investors to benefit from the increase in value. So, if you’ve been on the fence about adding silver bars or coins to your investment portfolio, now may be an opportune time to do so.
Find out how the right silver and gold investments could benefit your portfolio here.
There’s increasing industrial demand
Silver is also a highly useful industrial commodity. For example, it has numerous applications in sectors like electronics, solar panels, batteries and automotive manufacturing due to its excellent electrical conductivity and other properties.
And, as clean energy initiatives accelerate and electronic device usage proliferates, the demand for silver is poised to surge. In turn, the rising industrial demand could support higher silver prices over time, so adding silver bars or coins to your investment mix now, while silver prices are low, could be a smart move.
Silver can hedge against inflation
In times of economic turmoil and high inflation, investors often flock to hard assets like precious metals to preserve wealth. That’s because silver and gold have intrinsic value beyond fiat currencies and cannot be inflated by central bank policies. Their limited supply also helps protect against debasement.
And, given that we’re still dealing with inflation-related issues, investing in silver could be a wise choice. While inflation is down from its recent peak of 9.1% in June 2022, it remains stubbornly high at 3.2%. That, in turn, is causing the dollar to lose purchasing power. But by putting some money into tangible silver, like bars or coins, you may be able to hedge against the loss of value caused by inflation.
The gold/silver ratio is high
Silver has historically traded at much lower prices than gold on a per-ounce basis, making it more accessible than gold in terms of price. And, that’s particularly true right now, as gold prices are currently hovering above $2,000 an ounce while silver prices are just under $25 an ounce.
That means the gold/silver ratio is above 80, indicating that gold is about 80 times more expensive than silver. The gold/silver ratio has a long-term historical average in the 50s, so a ratio this high could be a sign that it’s the right time to buy in at an opportune price.
Silver can be used for portfolio diversification
Investing in silver also provides valuable diversification benefits for your overall portfolio. That’s because silver prices do not move in perfect correlation with other assets like stocks and bonds, so adding an allocation to silver can help reduce overall risk and volatility. And, by holding physical silver bars and coins in your investment portfolio, you have direct ownership of a tangible asset outside of the banking system.
The bottom line
Whether it makes sense to invest in silver, and how much of your portfolio you allocate to silver, will depend on your financial situation, goals and risk tolerance. However, given silver’s status as a critical industrial material, a safe-haven asset and a potential hedge against currency devaluation and inflation, it merits consideration right now as part of a well-diversified investment strategy.
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In the third quarter of 2023, U.S. mortgage holders collectively held $17.2 trillion in home equity, according to the November 2024 ICE Mortgage Monitor report. This includes $11.2 million in “tappable” equity, or equity homeowners can borrow against without dropping below an 80% loan-to-value ratio.
For homeowners, this translates to an average of $319,000 in total equity and $207,000 in tappable equity. Rising home prices provided this big pot of accessible cash and, for some, using it to upgrade their space could increase home values further — especially now that home equity loan and home equity line of credit (HELOC) rates have dropped steadily since their post-pandemic peak and are expected to fall further in the coming months.
Taking out a home equity loan or a HELOC to fund improvements allows you to borrow at an affordable rate, and both HELOC interest and home equity loan interest may be tax-deductible if funds are used to improve a qualifying primary or second home. If you’re thinking about using some of your equity to improve your living quarters, though, there are some home improvement projects in particular that experts say could boost your home’s value.
Compare today’s top home equity borrowing options online now.
3 strategic home projects that can boost your home’s value in 2025
The following home projects could pay off by boosting the value of your home in the new year:
1. Build an accessory dwelling unit
If you’re hoping your home could bring in some extra cash, or if you want to make room for extended family and household help, adding an accessory dwelling unit could be the ideal upgrade for you.
Andrea Saturno-Sanajna, a broker with Coldwell Banker Warburg, says that many localities are enacting legislation or creating programs to encourage the building of ADUs to create more affordable housing. In some cases, these programs even come with government funding to help cover the costs. However, even without this bonus, Saturno-Sanajna believes this is a project worth thinking about if it’s allowed in your area.
“The ADU could be rented out for additional income or used for aging parents or college students to be near family while maintaining some autonomy, for au pairs, exchange students or carers, or even for income-generating, short-term holiday accommodation where permitted,” Saturno-Sanajna says.
MyHome by Freddie Mac reports that ADUs increase your home’s value by as much as 35%, but they must fulfill certain requirements including having a kitchen, bathroom, and separate entrance. If you have the space and the equity available to create this type of dwelling, the payoff could be substantial.
Learn what your best home equity borrowing rates could be today.
2. Increase your energy efficiency
With the growing threat of climate change and the rising cost of electricity, projects that improve your home’s energy efficiency should be top on your list in 2025, says Michael C. Weiner, an agent at Coldwell Banker Warburg.
“Infrastructure changes that improve energy efficiency aren’t just helpful in boosting value but also can start paying for themselves from day one,” Weiner says.
His suggestions included upgrading your windows, adding insulation or installing a smart thermostat.
Weiner also recommends switching out older appliances with newer, more energy-efficient ones that can both give your home an updated look and reduce your utility bills for a double payoff. With the Department of Energy reporting that a new Energy-Star-certified fridge could save you more than $220 during its 12-year lifetime, this upgrade alone could be worth making.
3. Invest in wellness
The COVID-19 pandemic brought a renewed focus on maintaining good health, so incorporating wellness features in your home could be an upgrade worth considering in 2025.
Broker Sean Adu-Gymafi of Coldwell Banker Warburg advises installing upgrades like whole-house water filtration systems and air purification systems throughout the home.
“Water filtration systems will provide better water quality and are better for the environment as they can reduce the amount of bottled water used,” Adu-Gymafi says. “Similarly, installing air purification systems throughout the home can also add value. As more people prioritize health and their well-being, these features are becoming very desirable.”
The bottom line
These upgrades could help you to improve your financial situation immediately as you bring in rental income, improve your health and lower your monthly bills. They may also make your property more desirable to future buyers. Tapping into equity to complete them could be a smart financial choice in the new year, especially if you shop around for loans at competitive rates and take advantage of new, more affordable borrowing opportunities.
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