Silver prices have seen a slight dip this morning, with the precious metal trading at $49.04 per ounce at 6:45 a.m. Eastern Time. This marks a $1.22 decrease from the same time yesterday, though it remains 96 cents higher than it was one year ago. Over the past month, silver has dropped significantly, falling 19.28% from $60.76 per ounce.
Despite its recent volatility, silver is often viewed as a stable asset that can help preserve purchasing power, especially during inflationary periods. However, its performance over the long term has lagged behind traditional equities, underperforming the S&P 500 by roughly 96% since 1921. Compared to gold, silver is more volatile due to its industrial uses, which can lead to more pronounced price swings.
Investors have several options for adding silver to their portfolios, including physical ownership of bullion or coins, or investing in silver exchange-traded funds (ETFs). Silver bullion and coins must meet the 99.9% purity standard to be considered investment-grade. Advisors typically recommend allocating no more than 10% to 15% of a portfolio to silver, keeping total precious-metals exposure at or below 20%.
While silver's price has climbed more than 150% over the past year, reaching levels not seen in over a decade, whether it's the right time to invest depends on individual outlook. Some analysts predict further upside, potentially driving silver to record highs, while others caution about its volatility and long-term underperformance compared to equities.