Silver Stumbles but Still Beats Gold, Equity in 5-Year Returns

Silver has dropped 48% from its peak in January but remains the top performer among major asset classes over the past five years, according to a report by 1 Finance Research. The metal delivered a 5-year compound annual growth rate (CAGR) of 27%, outperforming gold's 25% CAGR and midcaps' 17% and smallcaps' 16% returns.

Despite concerns over higher US interest rates, which have weighed on silver prices, the metal still enjoys strong tailwinds. Demand from sectors such as solar energy, electric vehicles, and electronics remains robust, while supply-side constraints support its constructive medium- to long-term outlook.

Fund managers suggest a staggered accumulation strategy may be more prudent for investors, allowing them to balance silver's higher return potential with the need for risk management. Experts point out that corrections after a sharp rally are natural and do not weaken the long-term bullish outlook for precious metals.