Silver Futures | Is Silver a Good Long-Term Investment?

Gold & Silver Ratio

Silver Futures | Is Silver a Good Long-Term Investment?

June 8, 2024 477 view(s)

All four metals did well for the week, with gold up 3.2% to $2,400, silver up 7.5% to $29.72, platinum up 8.5% to $1,072, and palladium moving up 5.8% to $1,056.

 

From a year ago today, gold is up 19%, silver moves to the top spot, up 23%, platinum is up a fraction, and palladium is down 31.5%.

 

A few weeks ago we did a video discussing how the law of averages favors gold. Today I would like to discuss the question, “Is Silver a Good Long-Term Investment?”, and see if the law of averages favors silver as well.

 

When evaluating an investment, people often look at 1, 5, 10, and 20-year periods (when available), to help determine the likelihood of investment success. Silver has a 20-year average performance of 8.04% per year, and a 10-yr average of 4.29% per year. The law of averages indicates that silver is due several years of higher performance, to overcome the lackluster performance of the last 10 years. Keep in mind, “lackluster” is relative, as the average interest rate on bank deposits the last 10 years is around 1%.

 

The 5-year average is verifying the law of averages for silver, up 14.51% per year for the last 5 years. Continued good performance for silver is likely for the next several years. Another good indicator is the gold/silver ratio, which we will dive into next week.