At the beginning of 2024, the price of gold was slightly above $2,000 per ounce, but it has been soaring ever since. Currently, the price has reached around $3,400 per ounce, and there is widespread speculation in the market that it may soon break the $4,000 mark. This is double the price compared to January 2024.
Amidst this environment, many investors may have overlooked the advantages of other precious metals, especially silver, which has also been on the rise. According to data from American Hartford Gold, the price of silver has surged from $28.92 per ounce in January to $37.12 per ounce this week. While this may not seem significantly high at first glance, it marks a substantial 28% increase in just over six months.
Due to strong demand for industrial purposes like solar panels, this upward trend in silver prices may soon transition from a trend to a sustained pattern. This has led some investors to consider whether silver is now a more worthwhile investment compared to gold. CBS News has published an article exploring this topic.
Amidst the backdrop of soaring prices, is silver a more attractive investment than gold?
Ideally, investors should diversify their portfolios with various precious metals, including gold, silver, palladium, and other metals, typically limiting the sum of these metals to within 10% of the portfolio. While silver may not necessarily be “superior” to gold at the moment, it could be more appealing to certain investors for the following reasons.
In summary, unless purchasing scrap gold or using dollar-cost averaging, the entry point for potential gold investors is currently at historical highs. In contrast, despite recent price surges, the price of silver remains significantly lower and more affordable for a broader range of investors. While silver may not offer the quick sell-out and substantial profits that gold does, it presents the dual advantages of being an affordable investment in a rising asset.
Gold is a reliable hedge against inflation as it maintains value when the purchasing power of the dollar is eroded by inflation. For the same reasons, silver can also offer similar advantages.
If diversifying a portfolio and seeking an affordable way to achieve this is a key consideration for investment, silver can be of help. After all, a diversified investment portfolio is safer and better equipped to withstand economic fluctuations. If over-invested in stocks, bonds, or real estate, diversifying with alternative assets like gold and silver is a wise move.
While gold may have a higher reputation as a diversification tool, silver can serve the same function at a lower price.
Currently, there is no clear superiority of investment value between silver and gold; it typically depends on individual investors and their budgets and goals. However, with the rising silver prices, the likelihood of sustained high demand, its inflation-hedging and portfolio diversification advantages similar to gold, and its significantly lower price point, investors may find silver worth reconsidering.
(This article is for general informational purposes only and does not constitute any recommendation. The Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or any other personal finance advice. For specific investment matters, please consult your financial advisor. The Epoch Times does not bear any investment responsibility.)