While investors typically view silver as a safe haven in times of inflation, it is also known for its volatile prices and vulnerability during economic slowdowns. But with the demand for silver growing drastically, many investors are wondering if they should incorporate it into their portfolios. To help investors learn more about this precious metal, the Financial Post turned to Sightline Wealth Management for insight.
“The price of silver has a tailwind driving it forward,” says Sightline Senior Investment Advisor Paul de Sousa. “Silver is an increasingly important metal component in industrial inputs because of green initiatives by all countries around the world.”
With silver being essential in producing both solar panels and electric vehicles, as the desire for these sustainable products grow, silver typically grows with it. “I would say to an investor to look for industrial demand (for silver) to grow,” says de Sousa, pointing to the fact that the demand for silver is already more than the current supply.
Now, as the United States officially signs the Inflation Reduction Act into law, which will grant billions of dollars in tax credits for companies to manufacture solar panels and clean vehicles, the demand for silver could reach new heights.
However, if an investor is thinking about incorporating silver into their asset allocation mix, de Sousa believes it is important to speak with an experienced investment advisor to see if the precious metal is a suitable investment for their portfolio.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors.
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