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Gold prices have had a serious run-up over the last few years. With stubbornly high (but now cooling) inflationgeopolitical turmoil, stock market volatility and economic uncertainty, many consumers have flocked to the precious metal, both for a safe-haven investment and a smart way to diversify their portfolios.
But what about gold’s lighter-hued counterpart? Is silver experiencing the same type of gains? Here’s what experts say you should know about silver pricing — and what investing in the precious metal could mean for your portfolio today.
Find out more about adding precious metals to your portfolio now.
Has silver’s price also been rising? What experts say to know now
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Silver prices are certainly up over the last year. The current price sits at about $33 per ounce, up from just under $27 per ounce a year ago.
“Silver is up 25% from a year ago and has room to run higher, with many analysts predicting $40 per ounce by end of year,” says Brett Elliott, director of content at precious metals marketplace APMEX. “This is roughly a 20% gain from current levels, which would be an excellent return if price action follows the expected path.”
Historically, though, the $35 mark has been “a key resistance level” for silver, and it could be challenging to see prices get over that initial hump, Elliott says.
“The wildcard is going to be the economy,” Elliott says. “Silver does not perform well when the economy is not performing well. If tariffs have a dramatic impact on GDP or global trade, it’s possible that silver reacts adversely and that could show up as price weakness in the second half.”
How the Federal Reserve proceeds at its June and July meetings will play a big role, too, says Steven Conners, founder and president of Conners Wealth Management.
“If the Federal Reserve bank cuts the federal funds rate — the overnight lending rate in the U.S. — then silver may have some good appreciation,” Conners says. “The main reason is that interest rate investments will pay less, and since silver doesn’t pay interest, it could make it more appealing for other investors.”
Learn more about the benefits of gold and silver investing today.
Is silver a good investment alternative right now?
Whether silver is a good investment depends right now on your goals. If you’re hoping for big returns, for example, it’s likely not your answer.
“Depending on the dates chosen within the last 40 to 50 years, the compound annual growth rate of silver ranges from 3% to 4.12%,” says Ronnie Gillikin, president and CEO of Capital Choice of the Carolinas. “Silver prices have historically been very volatile. The risk of volatility is too high for the assumed rate of return.”
If you’re looking for a hedge against market volatility, though, silver can be smart, but it wouldn’t do much good at this very moment, Conners says.
“Silver is not a good investment right now, primarily because the stock market is rising,” Conners says. “However, as we have seen this year in particular, stock prices have been very inconsistent. When stock prices decline, silver rises.”
Gold can serve a similar purpose, offering your protection against fluctuations in other asset classes. And while you can technically buy both as a safeguard, keep in mind that “silver and gold tend to correlate,” so doing so may be unnecessary.
The two major reasons you might want both? First, silver is more affordable. You can buy into silver on a smaller budget and get protection without giving up a lot of capital. On top of this, the two metals have different uses, which could impact supply and pricing depending on where the economy goes.
“Gold is the best hedge against inflation; however, silver has industrial properties,” Conners says. “Should the economy accelerate from current levels, silver may outperform. Industrial uses include photovoltaic solar panels, mirrors, circuit boards, and batteries to name some major uses.”
The bottom line
At the end of the day, silver prices are volatile and hard to predict, and that could put you at risk if you invest too much into the metal.
“Precious metals should comprise between 5 and 10% of a portfolio,” Conners says. “There should also be major inflationary trends in place before increasing lower percentages of a particular portfolio.”
If you’re not sure if silver — or how much of it — is right for your portfolio, talk to an investment professional. And, if you opt for physical silver or goldgo in with a plan for storing and insuring it. This will help protect your investment in the long haul.
Silver Prices On the Rise: Is silver a Good Investment in Today’s Economy? An Expert Weighs in
Time.news Editor: Welcome, everyone, to Time.news. Today, we’re diving into the world of precious metals, specifically silver.With all the economic uncertainty and market volatility, many investors are looking for safe havens.But is silver the right choice? To help us navigate this complex topic, we have Dr. Evelyn Reed, a seasoned financial analyst with over 20 years of experience in precious metal markets. Dr. Reed, thank you for joining us.
Dr. Evelyn Reed: It’s my pleasure to be here.
Time.news Editor: Dr. Reed, the big question on everyone’s mind: Has silver’s price been rising? And is now a good time to consider investing in[[silver bullion]?
Dr. Evelyn Reed: absolutely. Silver prices have indeed seen a notable uptick. Over the past year, we’ve witnessed a surge from around $27 per ounce to the current levels around $33. That’s a substantial increase, and many analysts predict it could climb even higher, potentially reaching $40 by year’s end. So, yes, there’s been a positive movement in[[silver prices].
time.news editor: That sounds promising. But is it all smooth sailing? are there any potential roadblocks to this upward trend?
Dr. Evelyn Reed: Not necessarily. historically, the $35 mark has proven to be a significant resistance level for[[silver investing]. Overcoming that initial hurdle might be challenging. Furthermore, the overall economic climate will play a crucial role and current[[market volatility]needs to be understood. Silver’s performance is closely tied to the health of the economy. If tariffs, as an exmaple, have a negative impact on GDP or global trade, it could adversely affect silver prices, potentially leading to weakness in the second half of the year.
Time.news Editor: So, economic factors are a key factor. What about the Federal Reserve? How do their decisions impact[[silver prices today]?
Dr. Evelyn Reed: The Federal Reserve’s actions are absolutely critical. Specifically, their decisions regarding interest rates. Should the Fed decide to cut the federal funds rate, we could see further appreciation of silver prices. This is as lower interest rates make interest-bearing investments less attractive, increasing the appeal of non-yielding assets like silver. In this instance that creates[[investment opportunities].
Time.news Editor: That makes sense.Now,let’s delve into the core question: Is silver a good investment choice right now? The article suggests it depends on yoru goals. Can you elaborate?
Dr. Evelyn Reed: Exactly. If you’re chasing fast, substantial returns, silver might not be your best bet. Historically, silver has been quite volatile, and its compound annual growth rate, depending on the timeframe, has ranged from about 3% to 4.12%. The risk associated with that volatility might be too high for the expected return. Before considering[[investing in precious metals].
Time.news Editor: So, not necessarily for aggressive growth.What about as a hedge against market volatility? Is silver a good[[safe haven investment]?
Dr. Evelyn Reed: Silver can be a useful hedge, but its effectiveness is debatable when the stock market is already performing well.Typically, when stock prices decline, silver tends to rise. This year, we’ve seen a lot of stock market inconsistency, highlighting silver’s potential as a safe haven during those turbulent times.
Time.news Editor: The article also mentions gold. Should investors consider both gold and silver? is there a good[[gold vs silver ratio]?
Dr. Evelyn Reed: Gold and silver frequently enough correlate, so investing in both might seem redundant. Though, there are valid reasons to consider both. First, silver is more affordable, allowing you to buy in on a smaller budget. Second,they have different uses. Gold primarily serves as an inflation hedge, while silver boasts industrial applications, such as in solar panels and electronics. If the economy accelerates, demand for silver’s industrial properties could lead to outperformance. It’s really based on a investors personal[[investment strategy].
Time.news Editor: You’ve touched on industrial uses – this is significant right? Many see gold as purely a store of value whereas[[silver investing]also benefits from industrial use.
Dr. Evelyn Reed: Yes absolutely,the demand and[[price of silver]is heavily driven by its use within vital,growing industries like the solar panel and battery industries. This provides greater potential for long term performance compared to Gold.
Time.news Editor: What’s the bottom line for our readers? If they are considering investing in silver, what advice would you give them?
Dr. Evelyn Reed: I would emphasize that silver prices are inherently volatile and unpredictable. Avoid over-allocating to silver. Precious metals,in general,should ideally comprise between 5% and 10% of your overall portfolio. Also, consider increasing your allocation to precious metals only when there are strong indications of major inflationary trends.
Time.news Editor: Any last words of wisdom about[[investing in silver]for our readers?
Dr.Evelyn Reed: Before making any decisions,consult with a qualified investment professional. Also, if you choose to invest in physical silver, have a secure plan for storing and insuring it. This will protect your investment in the long run.
Time.news Editor: Excellent advice, Dr. Reed. Thank you so much for sharing your invaluable insights with our audience today.
Dr. Evelyn Reed: My pleasure.
Time.news Editor: And that concludes our discussion on silver prices and whether silver is a good investment right now. Stay tuned to Time.news for more expert insights on navigating the world of finance.
