Top 12 Must-Know Different Types of Investments
7. Silver
Definition: Silver is a precious metal used both as an industrial commodity and a store of value. Investors can invest in physical silver, silver ETFs, or mining stocks. It is often seen as a more affordable alternative to gold.
Pros:
- Hedge against inflation and economic instability
- Industrial demand can drive price growth
- Lower cost compared to gold, making it accessible
- Offers portfolio diversification
Cons:
- Volatile prices due to industrial usage fluctuations
- No income generation (no dividends or interest)
- Storage costs for physical silver
- Risk of price depreciation during stable economic periods
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