Is Silver a Good Investment Compared to Gold and Other Assets?
While silver may not be as valuable as gold, it has a wide range of uses and has been considered a store of value for centuries. It is also favored by investors like Robert Kiyosaki, who believes in its potential along with gold and Bitcoin. However, when it comes to comparing silver with other assets, such as gold or stocks, its investment potential becomes more uncertain.
How Much Has Silver Gained Since 1999?
In order to fairly compare silver with gold, Finbold decided to calculate the returns on a $1,000 investment in silver made in 1999. While 1999 wasn’t a significant year for silver, it provides a basis for comparison.
- Silver’s low in 1999 was $4.88 per ounce.
- As of March 22, the price of silver stood at $24.59 per ounce.
This means that a $1,000 investment in silver made in 1999 would have grown to $5,038.93 by March 2024, resulting in a return of 403.89%. While this growth is impressive, it falls short compared to the 770.25% return that gold would have provided over the same period.
Silver vs. S&P 500
Interestingly, both silver and gold outperformed the S&P 500 index over the same timeframe. A $1,000 investment in the S&P 500 in 1999 would have grown by 332.40% to $4,324.02, which is significantly less than the returns from silver and gold.
Hot Take: Is Silver Worth Investing In?
While silver has shown growth and has been a reliable store of value, it may not be the best investment compared to other options like stocks or cryptocurrencies. Here are some key points to consider:
- Silver has diverse uses in industries such as medicine, water treatment, textile manufacturing, and electronics.
- Investors like Robert Kiyosaki see potential in silver as a long-term investment.
- However, silver’s growth since 1999 falls short compared to gold.
- Both silver and gold outperformed the S&P 500 index over the same period.
Ultimately, the decision to invest in silver depends on your investment goals and risk tolerance. While it may not provide the same level of growth as other assets, it can still be a valuable addition to a diversified portfolio.
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