Long-Term Silver Returns in USD
Silver has shown very interesting performance when we look at its returns in US dollars over the last 25 years. If someone bought silver on the first day of any month and held it till now, the returns tell a clear story. (see the image below)
In recent years, the performance has been very strong, especially for people who invested in the last three to four years. Many of these returns are in strong double digits, which shows silver has done very well in this period.
A Tough Phase Between 2006 and 2014
There was a long phase when silver did not perform well. Between 2006 and 2014, the returns came down to single digits for many people, even if they held their investment till today. Anyone who bought silver during those years has not seen double-digit returns yet. This shows that silver can go through long flat periods where growth is slow or even close to zero.
Silver Needs a Longer Holding Period
Silver can give strong long-term performance, but the holding period needs to be much longer. In comparison with gold, silver shows more ups and downs. It takes more patience to get solid returns. For example, someone who stays invested for 15 to 20 years may see good results, but a shorter period like 5 to 10 years can be risky. In some cases, returns may not be very exciting even after a decade.
Benefits and Risks of Silver Investment
Silver is not only about returns, it also comes with price movement and uncertainty. There are times when silver goes very high, but those peaks are often followed by long periods of flat movement. This is why strong returns may not always continue. Silver has a history of long stagnation phases, where prices stay stuck for many years. Nobody can be sure if such phases will come again, but they have happened before.
Short-Term vs Long-Term Approach
Silver may work better as a short-term trade for people who can identify good price movements. If the goal is long-term, then planning needs to be very clear and very patient. Buying silver at high prices without long-term thinking may not give satisfying results. In the long run, silver can perform well, but in the medium term, it may not always match expectations.
