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 in April 2011, 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 we look at silver now, 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. Is silver a good play at this point? There are different ways people might approach it, from owning physical silver 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?