Given current stock market volatility, investors may be considering alternative asset classes as a way of diversifying their portfolio. While gold bars is a more popular choice for investors, silver bars may also provide a safe haven during economic turbulence, in addition to a potential hedge against high inflation rates.

Inflation erodes the ‘real’ value of money over time, meaning that $50 today buys you less than it did 50 years ago. Silver is a real physical asset that holds its value, whereas inflation reduces the value of ‘fiat’ currencies such as the British pound or US dollar. Investing in silver can therefore help to protect the ‘real’ value of your wealth against erosion from inflation. As a result, investors may revert to holding silver in times of high or rising inflation, with rising demand pushing up the price of silver. However, silver is a poorer hedge against inflation than gold. Although gold has some commercial uses, it is mainly bought for investment purposes and demand tends to rise in times of high inflation. But if high inflation is accompanied by an economic recession, a decline in manufacturing may mean an overall reduction in the demand for silver.

In addition to cash, shares, property and bonds, silver can help to diversify investment portfolios across a variety of different assets. Diversification helps to protect against one type of asset, such as shares, underperforming. However, unlike gold, the price of silver has not shown an inverse relationship to stock markets. In other words, the price of silver has not typically increased when stock markets have fallen.

The value of a currency is impacted by economic policies on interest rates and the supply of money, however, the value of silver is a function of supply and demand. As a result, silver tends to be a popular ‘safe haven’ in times of geopolitical and economic volatility. Silver prices soared by 140% in the three months from March to August 2020, as investors sought a sanctuary from the impact of the pandemic on global stock markets. There was also a 10% increase in price in the two weeks following Russia’s invasion of Ukraine.

Since 2022, SIFG has been producing sets of silver bars minted under the issuer of the Solomon Islands. They are an excellent investment option in silver.

In 2022, 5 different sets were released, with the nomination of each $ 20 bullion and the image of Queen Elizabeth II. 2 sets belong to the Famous people of Great Britain series and 3 sets from the Royal Houses of Europe series:
British Commanders of World War II
Great prime ministers of United Kingdom
House of Glücksburg Danish branch
House of Hanover
House of Nassau-Weilburg

In 2023, 6 different sets were released with the nomination of each $ 20 bullion and the image of King Charles III. 4 sets belong to the Royal Houses of Europe series, 2 sets of Great Naval Battles and Campaigns and battles of Napoleon I:
House of Savoy
House of Valois-Angoulême
House of Wittelsbach
House of Bourbon French branch
Great Naval Battles of England
Campaigns and battles of Napoleon I