Silver has shown a very impressive performance when we look at its history in the last 25 years. In Indian rupee terms, silver has given a 10.8% compound annual growth rate (CAGR).
This means that if someone had invested in silver around 2000, the total gains would have been about 1268% by now. Around 65% of those years were positive, showing that silver has held its ground well against inflation and other asset classes.
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Phases of Ups and Downs
Like every asset, silver has not been free from challenges. There were tough years in 2013, 2014, and 2015 when prices did not perform well. Again in 2021, silver went down by 10%. But even after such years, it managed to bounce back. The last two years showed gains of 25% and 30%, proving its ability to recover strongly.
Beating Inflation and Bank Returns
A return of 10.8% over the long term is much better compared to what one usually gets from bank deposits. Silver has also done better than inflation, making it a reliable store of value for those who held it patiently. For investors looking at it as a “hard asset,” silver has provided steady growth over decades, despite some periods of stagnation.
Volatility in the Short Term
While silver has rewarded long-term holders, it is also known for its high volatility. For short-term traders, this asset can be difficult to manage as the price swings can be sharp. But for long-term investors, silver has delivered good and consistent results. Even if it had phases of lull, such as between 2013–2015 or 2021–2023, it has still given an average return that is far from disappointing.
Silver’s Global Performance
Silver has not just been strong in India but across many global currencies. In US dollar terms, it has given a CAGR of 7.8%. In Japan, the number stands at 9.4%, while in the UK it is around 8.6%. On average, across different currencies, silver has given about 7.9% CAGR. This makes it a globally reliable performer and not just an India-specific story.
Final Thoughts
Silver’s journey shows that patience is rewarded when it comes to this asset. Over decades, it has beaten inflation, performed better than bank returns, and provided global investors with healthy returns. Despite its volatility, long-term holders have found silver to be a strong addition to their portfolios.
