{"id":83848,"date":"2023-09-05T10:29:53","date_gmt":"2023-09-05T10:29:53","guid":{"rendered":"https:\/\/kinesis.money\/?p=83848"},"modified":"2023-09-05T10:30:10","modified_gmt":"2023-09-05T10:30:10","slug":"five-common-myths-about-silver","status":"publish","type":"post","link":"https:\/\/kinesis.money\/tr\/blog\/silver\/five-common-myths-about-silver\/","title":{"rendered":"5 Common Myths About Investing in Silver"},"content":{"rendered":"\n

At the time of writing, the current market capitalisation of silver – that\u2019s the price multiplied by the amount of the asset in the circulating supply – is around $1.3 trillion dollars<\/a>. <\/p>\n\n\n\n

That makes it over twice as valuable as the most popular cryptocurrency, Bitcoin, and megacorporations like Meta.<\/p>\n\n\n\n

Silver often plays second fiddle to gold, but is in many ways just as viable an investment due to its nature as an asset with intrinsic and extrinsic value, along with its history of use as money and a store of value. <\/p>\n\n\n\n

As a result of this long history, various myths about the precious metal have sprung up, and we\u2019ll debunk five of the most common myths in this article.\u00a0<\/p>\n\n\n\n

Myth 1: Silver is Just a \u2018Poor Man’s Gold\u2019<\/h2>\n\n\n\n

Experienced investors know that diversifying their precious metals portfolio is a good idea: you can own silver<\/a> and <\/strong>gold, but some beginner investors might only have the capital to invest in one or the other and choose gold due to the stigma surrounding silver.\u00a0<\/p>\n\n\n\n

In the short term, at least the lower entry price of silver<\/a> means that it often enjoys higher percentage gains.\u00a0<\/p>\n\n\n\n

Silver is more abundant than gold, which gives it retail use cases, but also high-demand industrial use cases such as in solar panels and electric vehicles (EVs). This results in a supply deficit whereby silver cannot be created in quantities vast enough to satisfy industrial demand. This economic scenario usually drives price levels upwards.\u00a0<\/p>\n\n\n\n

Myth 2: The Silver Market is Easily Manipulated<\/h2>\n\n\n\n

The silver investment market has the potential <\/strong>to be manipulated, but to state that it is without examining the evidence would be irresponsible.<\/p>\n\n\n\n

There are a number of reasons for this. First, the silver market is relatively liquid, meaning that there is often a high level of trading volume, which makes it easier for large investors to move the market price by buying or selling large amounts of silver.<\/p>\n\n\n\n

Second, the silver market is heavily influenced by speculation. This means that investors are often buying and selling silver based on their expectations of future prices, rather than on the underlying fundamentals of the market. This can lead to volatile price movements that are susceptible to manipulation.<\/p>\n\n\n\n

In 2021, there was a social media-driven “silver squeeze<\/a>” that led to a sharp increase in silver prices. Some investors believe that this squeeze was the result of manipulation by large investors.<\/p>\n\n\n\n

Whether or not the silver investment market is actually manipulated is a matter of debate. However, the potential for manipulation is there, and investors should be aware of this risk before investing in silver.<\/p>\n\n\n\n

Here are some tips for investors who are concerned about silver price manipulation:<\/p>\n\n\n\n