5 Reasons for Adding Silver to Your Investment Portfolio

Silver could be the market-leading precious metal in 2023, with multiple catalysts set to push prices higher. We go into detail on five key reasons we Australian investors should add silver into their portfolios this year. Read this info in PDF version here.

Outperformance in precious metal bull markets

Silver tends to outperform gold in precious metal bull markets. This can be seen in the chart below, which shows the five largest precious metal bull markets of the last five decades. While gold prices more than doubled in these environments, silver rose by almost 500% on average.

 
Source: LMBA, ABC Bullion

The best precious metal to hedge inflation

In high inflation environments, gold has delivered average annual gains of 15%. For silver, the number is 18% per annum, with protection against rising prices a key reason to include silver in a portfolio.
 

Correlation to the rising stock market

Silver has varied sources of industrial demand. This means silver often performs well when the economy is growing, and the stock market is rising. This can be seen in the chart below, which shows the performance of stocks, gold, and silver, in years the stock market goes up.
 

 
 

Market indicators suggest silver remains undervalued

The Gold to Silver Ratio (GSR) measures how many ounces of silver are needed to equal an ounce of gold. The lower the GSR, the more expensive silver is relative to gold, while a higher GSR indicates silver is undervalued relative to gold. The GSR ended 2022 at 76, suggesting silver remains extremely undervalued today.
 
 

Trade flexibility

Because silver is cheaper than gold, it’s easier to spread a large sum of money across multiple products. For example, as at end of December 2022, 1 kilo of gold was worth just over $86,000, while 1 kilo of silver was worth just over $1,100. This also provides greater flexibility when it comes to eventual resale.
 
 
 

Products to Choose From

 
 

1kg ABC Bullion Silver Cast Bar

Our signature cast bar and best seller, 1kg ABC Bullion Cast Bars come with individual serial numbers and assay certificates, guaranteeing metal weight, purity and origin.

5kg ABC Bullion Silver Cast Bar

The largest investment-grade cast bar in the ABC Bullion product range, these bars are particularly popular with those looking to make a large investment into precious metals.
 

ABC Bullion Silver Coins

ABC Bullion offers a wide range of investment-grade silver coins, from our very own Eureka range to Maple Leafs, Brittanias and Krugerrands. Perfect for those wanting to own precious metals in coin form.
 

Exciting Opportunity

ABC Bullion's Gold Saver account is a fully automated physical bullion accumulation plan, suitable for investing in both gold and silver. It is the perfect choice for those wanting to build savings by purchasing physical gold and silver on a regular basis. The ABC Gold bullion Saver is akin to a savings account where you deposit money each week, fortnight or month.
 
 

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