January 14, 2013 Precious Metals 18 Comments

The Silver Series: Silver as an Investment (Part 3)

The History of SilverSilver Supply and DemandSilver as an Investment

Silver as an Investment - The Silver Series Part 3

silver-ed-endeavour

The Silver Series: Silver as an Investment (Part 3)

The History of SilverSilver Supply and DemandSilver as an Investment

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:

18 Responses to “The Silver Series: Silver as an Investment (Part 3)”

  1. bernank says:

    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

    • Jeff says:

      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!

  2. PrivE says:

    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

  3. Adnan says:

    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

  4. George Margaris says:

    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?

  5. egoist says:

    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!

  6. Crash says:

    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.

  7. Randy says:

    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.

    • Jeff says:

      This is a very fair point, Randy. Silver bullion is one of the only assets that is not simultaneously someone else’s liability.

  8. RE says:

    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”.

  9. SRV says:

    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!

  10. Lee says:

    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

  11. David Kookaburra says:

    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……

  12. Eve Silber says:

    Wonderful sheets, compliments for the graphics! As soon as you have sheets with the 2013 data included we would be happy to use them…

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