Is silver a good investment?

[charlie]

I’ve been thinking about adding silver to my portfolio, but I’m unsure if it’s actually a smart move. Some people say it’s a great hedge against inflation and cheaper than gold, while others argue the price is too volatile and slow to grow. For those who invest in silver, do you see it as a reliable long-term investment, or more of a speculative asset? Curious to hear real experiences and opinions.

 

[denjoshep]

Silver may be a good investment, however, it is all about your financial goals and risk tolerance. Here's the rundown:

• Hedge Against Inflation: Silver has been considered as a hedge against inflation and devaluation of currency just like gold. Paper money is usually battered in uncertain periods and precious metals such as silver tend to remain constant and hence it is regarded as the safe haven.
• Reduced Barrier to Entry: Gold has a high price compared to silver and thus it is less available to ordinary investors. You can purchase the physical silver in the shape of coins or bars, or you can purchase the silver via ETFs or mining stocks.
• Volatility: Silver is generally more volatile as compared to gold, and this implies that its price can change significantly. It can be a two sided sword: you can gain more and at the same time you can suffer losses, particularly when you are investing in silver futures or stocks which depend on silver.
• Industrial Uses: Silver finds major industrial uses especially in electronics, solar panels and medical equipments. This is capable of pushing the demand and the price. But it is also dependent on such factors as any change in technology or the slowdown of economic conditions that can impact the industrial production.
• Long-Term Growth: In the long-run, silver has been shown to increase in value, however, it is a slower and less predictable increase than other investments such as stocks or real estate. It is more of a store of value, not necessarily a growth investment.

Silver in brief can be a good investment in case you need to diversify, have a long-term perspective and you can afford the volatility. It is always good to diversify it with the rest of the assets to avoid risk. When you are not very familiar with precious metals, perhaps you can invest just a bit of your money, and see how that fits your investment plan.

 

[tonny]

Silver is not always bad investment, particularly not a short term profit game, but rather a long term hedge. It is inexpensive, physical, and applicable in the industry, yet it is also heavy, unstable, and does not make a profit. Good, as a diversification.i.e., not something to gamble on.

 

[rajivkumar]

Silver can make a good investment, yes but it has to be depending on what you want to do. Here’s a quick view:

The reason behind the silver being a good investment.

• Affordable compared to gold
• Hedge against inflation
• Electronics, solar-panels industrial demand is high.
• Easy to buy and sell

Why it may not be ideal

• Prices can be volatile
• Physical silver storage expenses.
• None of the passive income (as with stocks or real estate).

Best when: Diversifying over the long term, inflation, and low investment budget precious metals.

 

[Rick_Grimes]

If you're looking for a longer-term, safer investment that guards against market volatility and inflation, silver might be a good choice. Although it has strong industrial demand and is less expensive than gold, its price can fluctuate more in the near future. It should not be your sole investment; rather, it should be a part of a diversified portfolio.

 

[Jarwish]

Silver can be a reasonable investment for diversification. It often hedges inflation and has industrial demand, but its price is volatile and influenced by economic cycles. It’s best used as a small part of a broader portfolio rather than a primary investment.