I do not recommend buying silver as part of a portfolio. My research indicates that, depending on the dates chosen within the last 40 to 50 years, the compound annual growth rate ranges from 3% to 4.12%. Silver prices have historically been very volatile. The risk of volatility is too high for the assumed rate of return.
The firms that sell silver out of fear for reasons or scenarios such as the potential “collapse of the dollar” are eager to sell you the silver in exchange for dollars! If they believe the dollar will soon collapse, why are they aggressively selling it to clients in exchange for the dollar? I have heard silver and/or gold promoted as “real currency” and as a form of protection in the event of a stock market or dollar collapse. Suppose we ever find ourselves in a scenario where the dollar is worthless and all 300-plus companies in a good mutual fund have gone under. In that case, I do not believe anyone will be interested in selling you the things you will need most for a metal. If that scenario scares or concerns you, I would suggest having adequate food, water, and shelter, as well as a way to defend your necessities.
I have spoken with people who have paid a commission when buying silver and then had to pay a percentage to sell it.
I have also spoken with clients who already own silver and have some challenges in knowing how and where to store it.
If a radio show host or podcaster recommends a company for buying silver or gold, be aware that there is a good chance the host is earning a commission on the sale. They can provide commissions to the host through a special affiliate link or code. The host may influence the sale through doomsday stories and scenarios, causing the buyer to act out of fear and trust the host's credibility.
I know some people enjoy buying silver coins as a hobby.
I recommend doing detailed and unbiased research on the historical price of silver and the CAGR, or compound annual growth rate. Never invest out of fear or greed, but make informed and rational decisions based on what you understand.
If a person wants a small portion of their long-term portfolio to be invested in precious metals, that is their right, but please make an informed investment decision.
