Is Silver a Good Investment Now?

Silver as an investment?

When people talk about investing in precious metals, it seems as if gold is the first thing that comes to mind.  The run up in gold prices a few years ago brought this metal back up into the minds of everyday folks.  It seemed like some folks even started allocating a portion of their portfolio to gold, viewing it as a timeless store of value.

What about silver?  It’s almost like the secondary precious metal, kind of like a sidekick to gold.  Gold is like Batman, Silver is like Robin.  When something is a sure thing, or amazing, some might say it’s “golden”.   Do we ever say, “that’s great – we’re silver”.  No, not really.  Gold is where the glamor is.

However, could this be a time to consider silver?  In other words, is silver a good investment right now?

A previous article discussing whether or not there was a silver bubble was published here well over a year ago, and it was right at the time when silver was at around $47 per ounce.  At the time, compared it to the Dow, and noted that the ratio of Dow averages to Silver was only at 265 – down from over 2,000 ten years earlier.  In other words, silver prices had increased at a rate far outpacing the markets over that decade.

Well, just a few weeks after that article was published, the silver bubble did actually burst. As of this writing, it’s at $32.58 per ounce as of this writing.  Comparing this to the Dow, the ratio is back up to 391.  Now, there has been a bit of instability in the markets of late, but people seem to be wondering where things are headed.  Looking at the current price of silver, it might get one asking if silver a good play at this point? There are different ways people might approach it, from owning physical silver like bullion or coins, to investing in silver-related companies – or maybe even dealing with futures.

I actually saw a television ad for investing in silver, which is not something I recall seeing in the past.  Perhaps other such ads have been there for a while, but I don’t recall.  Anyway, it got me thinking about the idea that people might be looking at silver again.  Now, I’m not an investment professional and am not giving direct advice.  Just getting the topic revisited, and presenting some information to consider and discuss.

I’m curious what you think of silver.

My Questions for You:

Have you ever bought silver as an investment? Or alternatively, do you own any in other forms (jewelery, coins, etc)?

What do you think of silver (or other precious metals) for investing purposes?

Comments

  1. says

    I have considered silver, but never jumped in. I have also looked at an ETF that contained a basked of precious metals (gold, silver, platinum, copper, etc) so you would have a more diverse metal exposure in your investments.

  2. says

    I own quite a bit of silver but it is not an investment. In fact I own an (sterling silver) antique candelabra I plan on auctioning off when silver hits a high again.

    • Squirrelers says

      krantcents – I think that’s probably the case for a number of people: they hold silver but not specifically for investment purposes. That said, it can be a nice fallback.

  3. says

    Personally, I’m not a fan of commodities investing as they are extremely volatile and pricing is based solely on supply and demand. I prefer going for a diversified approach of broadly based index equity and REIT funds.

  4. says

    The nice thing about silver is that it’s possible to jump in for very little money. Thirteen or fourteen US dollars will get you an old pre-1964 Franklin half-dollar piece (let’s stop to think about currency devaluation for a second… ;-) ). Personally, I’d rather think of silver as a store of value or an asset class rather than an investment. Buying stock in a silver miner, on the other hand, is not even an investment, it’s pure speculation!

    • Squirrelers says

      101C – I can see that as far as being a store of value, this is what people have thought of gold for quite some time. There is no cash flow thrown off by such assets, so the line between store of value and investment might be blurred for some.

    • Squirrelers says

      Kathleen – I just found one not long ago, it just looked a bit different and when I checked, it was silver! Those are fun to find.

  5. says

    I believe that silver is a good investment at this time. I believe that it will become more valuable in the future as the demand for silver goes up, and the supply of new silver goes down. I believe that it has more actually functions in a useful way than does Gold… so, based on that alone, i can see silver becoming more precious than silver in the future.

    We shall wait and see what the future holds!

  6. Leslie says

    I believe that the last price quoted by MONEX for an ounce of .999 pure silver last Friday
    was $21.94, and not the $32.00per ounce noticed here a little while ago. If it is at $32.00
    then, that a good sign it may be on it’s way back to $47.00 1n 2011 when it was a good time to sell.

  7. says

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