silver | Makri Finance

Jan 31, 2024

Silver Lining: Why Investing in Silver Is a Smart Financial Move

Welcome to the world of silver – a precious metal that shines bright with potential! While gold often steals the spotlight, consider the allure and benefits of investing in its shiny sibling. There are many types of precious metal investments, and silver bar is one of them. In this blog post, we will explore why investing in silver is a smart financial move. Silver has everything from acting as a hedge against inflation to its industrial demand and potential for appreciation. So, grab your pickaxe (or maybe just your laptop) as we delve into why adding glittering silver to your investment portfolio could be your very own “silver lining.”

Hedge Against Inflation

In a world where the value of paper currencies can fluctuate wildly, having a hedge against inflation is crucial for any savvy investor. This is where silver comes into play. Unlike cash, which loses value over time due to inflation, silver has historically proven to be a reliable store of wealth. When inflation rears its head and erodes the purchasing power of your hard-earned money, owning physical silver can help protect your wealth. As the cost of living rises and prices soar, the value of silver tends to follow suit. In fact, throughout history, during periods of high inflation or economic uncertainty, investors have turned to precious metals like silver as a safe haven.

Industrial Demand

One of the main reasons why industries highly seek silver is its exceptional conductivity. It has the highest electrical and thermal conductivity among all metals, making it essential for electronic devices such as smartphones, computers, and solar panels. Silver also possesses antimicrobial properties that make it ideal for use in healthcare settings. It is widely used in medical equipment like catheters and wound dressings due to its ability to inhibit the growth of bacteria. Furthermore, silver is extensively used in the automotive industry to manufacture components such as catalytic converters and sensors. Its durability and corrosion resistance make it an excellent choice for these applications.

Potential for Appreciation

The potential for appreciation is a key factor that makes investing in silver an attractive financial move. Unlike many other investments, silver has the potential to increase in value over time, providing investors with a significant return on their investment. One of the main reasons why silver has the potential for appreciation is its scarcity. While gold often steals the spotlight as a safe-haven asset, silver is actually much rarer. It is estimated that there are only around 17 times more gold reserves than silver reserves worldwide. This limited supply and growing industrial demand create a perfect environment for price appreciation.

Store of Value

When it comes to investing, finding assets that can retain their value over time is crucial. One such asset that has stood the test of time as a reliable store of value is silver. Silver has been used as a currency for centuries and holds its worth in today’s modern economy. Silver maintains its intrinsic value regardless of market conditions, unlike paper currencies, which can be easily devalued by inflation or economic instability. Investing in silver gives individuals a tangible asset they can physically hold and own. This physical presence gives investors peace of mind, knowing that their wealth is not dependent on the performance of financial institutions or digital systems.

As always, when considering any investment decision, do your own research! Consult with financial advisors who specialize in precious metals, if necessary, before making any significant financial moves. By understanding the benefits offered by investing in this timeless metal – hedging against inflation pressures, benefiting from industrial demand and potential appreciation, and having a reliable store of value – investors can make informed decisions about adding silver to their investment portfolio.…

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Jan 1, 2024

Guide to Tax Implications When Investing in Silver

So you’ve just started investing in silver. Now, you may be wondering what’s next. One important aspect to consider when investing in silver is the tax implications that come with it. Like any investment, silver can have different tax implications depending on how it is bought and sold. But what exactly are the tax implications of investing in silver? Here’s your guide to understanding the potential taxes you may face when investing in silver.

Capital Gains Tax

When investing in silver, you may only focus on the silver spot price. But there is one thing you shouldn’t overlook. That’s the capital gains tax. This is the tax you pay on any profit you make when selling your silver investments. The rate basically varies depending on how long you hold onto your silver before selling it. If you owned the silver for less than a year, it’s considered a short-term gain and will be ultimately taxed at your ordinary income tax rate. On the other hand, if you held onto the silver for more than a year, it’s classified as a long-term gain and may qualify for lower tax rates.

Short Term vs. Long-Term Capital Gains

Short-term capital gains apply when you sell your silver within a year of purchasing it. These gains link to ordinary income tax rates, which basically range from 10% to 37% depending on your tax bracket. So, if you make a profit from selling your silver within a year, be prepared for potentially higher taxes. On the flip side, long-term capital gains come into play when you hold onto your silver for more than a year before selling it. The advantage here is that these gains are taxed at lower rates than ordinary income. Factoring your taxable income and filing status, long-term capital gains may be subject to either 0%, 15%, or 20% federal tax rates.

Reporting Gains and Losses

Moreover, reporting these financial transactions accurately is crucial to staying compliant with the IRS guidelines. To accurately report your gains and losses from silver investments, keep detailed records of each transaction, including purchase date, sale date, cost basis (the price paid), proceeds from the sale, and any expenses incurred during the process. Additionally, if you have experienced a loss from selling silver investments within a given year (either short or long-term), you may be able to deduct that loss against any capital gains realized during that same year.

Tax-Advantaged Accounts

Utilizing tax-advantaged accounts when investing in silver provides unique opportunities for reducing taxable income or potentially even eliminating taxes on future gains. By exploring options such as IRAs or employer-sponsored 401(k) plans, investors can take full advantage of the various benefits available through these specialized accounts while building their wealth through silver investments.

Being aware of the various tax implications involved in investing in silver is crucial for maximizing profits and minimizing unnecessary taxes paid out-of-pocket. By staying informed about current laws and seeking professional advice when needed, you’ll be better equipped to navigate this exciting realm of investment opportunities.…