The Silver Series: Silver as an Investment (Part 3)
The Silver Series: Silver as an Investment (Part 3)
Silver has had double digit gains in 7 of the last 10 years. In this infographic, we look at the investment properties of silver as well as its chief differences with gold. Highlights include a study on silver correlation, volatility, performance against the US Dollar and money supply, and portfolio diversification.
Enjoyed the Silver Series?
Check out our series on Gold:
Great infographic; I would be curious to see how the mining shares have correlated to the USD and debt levels– it seems at times that there is huge divergence between the price action in the metals and the stock in the actual companies that dig the stuff up. Insight appreciated, gratzi
Bernank
Hi Bernank,
This is an interesting point. It’s something that is very easy to do with gold by using something like the Gold Bugs index. However, while doing the research for this infographic, we realized that there isn’t a ton of great datasets out there like there are for gold. We even had to manually map out the silver price data from daily London fixings to get the weekly numbers.
Of course the biggest challenge is that most silver is actually produced as a by-product of base metals. The concept of a “primary silver producer” is relatively new. That said, one could combine the primary producers into an index – it just probably wouldn’t be able to go back very far in time. Maybe this is something that we can do for our next “Market Intelligence” infographic.
Thanks for the feedback – cheers!
Hi,
These infographics are invaluable! Very easy, fun and effective way to become updated of facts and figures in a very composed way!
Will you update these with new infographics yearly regarding the gold and silver market?
I think there will be a big demand in that!
I myself have printed these and hung them on my wall and it would just be so fantastic to follow up with future infographics to be able to see the trends in a very easy way and to have stored historical data!
Fantastic work!
Tack!
PrivE
This is great, if there is any way you could send me these graphics to print out for my exhibition about Silver I would be obliged
Thanks
Adnan
Nice visualisation. But you might want to proofread it.
E.g. at the Silver EFTs:
“ETFs have management fees and commission fees for each buy and sell.
Some ETFs also have liquidity issues or could in the future.”
Could in the future WHAT?
or wait… I see now how that might work grammatically… never mind.
Silver has another nice feature: you can mint your own rounds – as I have – for some occasion, some person… This year my siblings & parents all got Christmas 1oz rounds (as minute store of value, if nothing else). I have made some Ayn Rand rounds (www.reardenmedals.com) that I am selling.
If / when SHTF, I’d rather trade a silver round than a gold round for a tank of gasoline!
Interesting,
Where can I buy the metal??
gr. yillen
Hello yillen,
We have an excellent program in which to invest in silver & gold, have a look at the 7 part presentation videos here http://www.aruma4u.com/roadking, its free to join also.
If you have any questions please don’t hesitate to contact me.
Kind regards
Helena
highwayfreedom4u61@gmail.com
Excellent infographic – one glaring omission that would tell a lot, is the number of ounces of Au and Ag produced worldwide over the past ten years – surprised that this was not included.
This has been covered separately in the Supply and Demand infographic for Silver:
http://www.visualcapitalist.com/portfolio/the-silver-series-supply-and-demand-part-2
and also the Gold Supply infographic here:
http://www.visualcapitalist.com/portfolio/gold-series-mining-supply-part-2
But you are right – we haven’t compared them directly here.
Great infographic! I would take issue with one small component:
“… there are alternatives to physically obtain silver bullion such as silver certificates and allocated/pooled accounts.”
To offer that much info with no mention of counter-party risk seems like a mistake to me.
This is a very fair point, Randy. Silver bullion is one of the only assets that is not simultaneously someone else’s liability.
Its also a very safe money-parking ; no matter what happens to the markets, you silver will remain the same. It will not shrink in size or become “bankrupt”.
Very nice approach / concept, and information… congrats!
Minor disappointment… the three investment (the “hook” in the story) strategies are less than earth shattering (would anyone reading this not be quite familiar with them?). I (for one) was looking for something new… as in, sectors with heavy industrial use in order to diversify a metals focused portfolio (maybe next time).
Thanks!
Your visual aids are excellent for explaining the pros and cons of silver as an investment. I especially appreciate the chart depicting the positive correlation between money supply and the silver spot price. An increase in the money supply typically results in an increase the price of silver. This relationship is truly an important attribute.
Thanks,
Lee
Well Done….Great 3 part series…..I will keep it simple….Take the information onboard……Keep stacking yourself…….Tell others…Like family & friends…..Then go back and do the same again and again & again. One day soon Silver will shine Brighter than the Sun……Oh what a day that will be……