Is silver a good investment? A beginner’s guide to silver and the role it can play in your portfolio

Is silver a good investment? A beginner’s guide to silver and the role it can play in your portfolio

Gold tends to get all the glory in the investing world “” it's the go-to people think of when they want an alternative investment to traditional stocks and bonds. But from time to time, the financial spotlight falls on silver, and it shoots up in price, even outperforming its yellow-metal cousin in the market. 

For example, in early February 2021, traders on Reddit's WallStreetBets forum sent silver prices spikingto an eight-year high. Back in 1979-80, a pair of billionaire brothers, the Hunts, tried to corner the global silver supply, sending its per-ounce price from $11 to nearly $50.

But what about when the metal isn't being manipulated by traders? Is silver a good investment? 

The short answer is, it can be “” both as a cheaper alternative to gold and also for some intrinsic qualities of its own. But silver also comes with unique considerations and risks that investors need to consider.

Why invest in silver?

Like gold and other natural resources, silver is classified as a commodity “” a publicly traded, tangible asset. Tangible assets' prices generally move in the opposite direction from stocks and bonds. 

For this reason, many investors turn towards commodities like silver when the stock market has a poor outlook or