Silver as an asset for investment diversification

[free-bit.co.in]

IMO diversification is a bad idea if you know what's good. Diversification is for people unsure of the things that want to hold. Like when you don't know if you can handle spicy food, you want some spicy and some mild, right? I know what I like, I know what I want, so why would I buy silver right now if I can have bitcoin?

The deal is, if you don't own bitcoin and gold, you should buy bitcoin. If you already own bitcoin and really want to diversif, just buy more bitcoin I really don't believe that in the long run silver will ever appreciate more than gold and bitcoin.

I somewhat agree with you that diversification is not always a good idea in all cases.

If we have a large amount of capital, diversification is necessary and mandatory to minimize risk. Because the risk of investing is not only in price fluctuations in the market but also in theft, attacks, hacking or forgetting private keys...

But if we have only a small amount of capital, diversification is not a wise idea in this case. Because that could cause our profits to drop significantly as each asset will have different growth rates. Focusing on a single investment like bitcoin will yield better returns than diversifying into less volatile assets like gold or silver.

[Cheema02]

The price of silver increases relatively less, due to which investors do not show much interest in investing in it. However, this time, due to the sudden increase in the price of gold at a very fast pace, the price of silver has also increased a lot. So now investors are also showing interest in silver and are buying a lot of silver and stocking it. Because now everyone has started thinking that since the price of gold has increased a lot and is constantly increasing, not everyone can afford to buy a lot of gold, so now there is an opportunity to buy a lot of silver and hold it, then a good amount of profit can be generated from it in the future. So silver can be a good investment.

Your point is valid Silver often lag as compared to gold and its price moves slowly as compared to gold. In few days prices of gold goes up sharply and continuously increased and investors change their minds because they thought that silver is much more stable and effective asset and a efficient alternative of High prices gold. And now silver is a well stabel and more affordable price's and aslo silver is a metal and have long term value. So price's will may fluctuated so the main thing is demand pay off .So at the end the learning point is that investors  may revert to Silver minning and investimg in it instead of gold becaus   gold has more worth keep high prising and so many people don't purchase it so they revert to Silver minning and investment.

[DrBeer]

And then silver comes to mind. First, there are many “hints” that the metal is currently undervalued. Second, it is quite affordable today.

How do I put this nicely, silver is the shitcoin of metals. There is absolutely no reason to have any exposure to silver. There are many other and better ways to diversify your holdings. I know even people who forfeit their gold holdings into silver a few years ago because they recognized the alleged opportunity for similar reasons for which you wrote here. Yes you have read that right, they sold gold to not buy Bitcoin but to buy silver. Do you want me to ask them how they are doing because the answer won't be pretty? 
...

If we talk about the specific situation “here and now,” over the past six months, silver has risen in price from approximately $32/ounce to $58/ounce. This is a total increase of approximately 80%.
But let's compare the annual dynamics (December 2024/December 2025):
Prices in December 2024
-Gold: approximately $2,606.7 per ounce (as of December 31, 2024).
-Silver: approximately $28.94 per ounce as of December 31, 2024.
-Bitcoin: according to data for the end of December 2024 — approximately $94,000–99,000 (depending on the date) — for example, December 28, 2024: ~$94,160.

Prices now / at the end of 2025 (approximately):
Gold    ~ $4,235–$4,240 per ounce
Silver    ~ $53–$56 per ounce
Bitcoin    ~ $85,000 per 1 BTC

About your friends — perhaps they didn't assess the market very well LAST year? It happens Some, for example, bought Bitcoin at $125,000. Ask them how they assess their actions now

And most importantly, there is no such thing as a perfect investment asset! Some are good for the long term (such as gold), while others have their own characteristics. For example, we don't know what will happen to Bitcoin; it may turn out to be just another “bubble,” and silver will probably be replaced by a cheaper alternative!

[Dogedegen]

The general advice is not to put any more than 5% of these more "exotic" assets, in this case all precious metals, into your investment portfolio - but if you felt like silver really had a strong future then you could make a personal decision to override that to maybe reach 10-15%.

Gold and silver are not exotic assets. Most people would do well without any percentage limitation on gold. Most people don't have anything other than fiat, so this advice is also misplaced. It depends on who you are talking to and what their goals are.

If we talk about the specific situation “here and now,” over the past six months, silver has risen in price from approximately $32/ounce to $58/ounce. This is a total increase of approximately 80%.
But let's compare the annual dynamics (December 2024/December 2025):
Prices in December 2024
-Gold: approximately $2,606.7 per ounce (as of December 31, 2024).
-Silver: approximately $28.94 per ounce as of December 31, 2024.
-Bitcoin: according to data for the end of December 2024 — approximately $94,000–99,000 (depending on the date) — for example, December 28, 2024: ~$94,160.

Prices now / at the end of 2025 (approximately):
Gold    ~ $4,235–$4,240 per ounce
Silver    ~ $53–$56 per ounce
Bitcoin    ~ $85,000 per 1 BTC

You just picked a specific time frame in which silver looks good whereas it looks terrible in every other point in time. Ask those who bought the last 2 ATHs how their investments are doing. They are down somewhere between 50 to 90% depending on which ATH they bought in at after you factor in for inflation. If you want to make a comparison then do it fairly, otherwise don't try. The people who I know and invested in silver are ranging between full cope and crying over the mistake that they have committed.

And most importantly, there is no such thing as a perfect investment asset! Some are good for the long term (such as gold), while others have their own characteristics. For example, we don't know what will happen to Bitcoin; it may turn out to be just another “bubble,” and silver will probably be replaced by a cheaper alternative!

If you don't believe in Bitcoin you are in the wrong place. Why are you here? Go to some shitcoin or junk metal forum instead.

Gold went up massively this year but silver is doing even better. If you know anything about the silver market
you know it is hugely undervalued based on the demand, and is likely to surpass $100 (double in price) IMO within

The demand for silver is not that high. From the jewelry side of thing, people who can't afford gold end up buying silver as a compensation. It is not because they demand silver, it is because they are too poor for the real quality thing. 

Your point is valid Silver often lag as compared to gold and its price moves slowly as compared to gold.

According to you, silver will crash soon. 

[DrBeer]

IMO diversification is a bad idea if you know what's good. Diversification is for people unsure of the things that want to hold. Like when you don't know if you can handle spicy food, you want some spicy and some mild, right? I know what I like, I know what I want, so why would I buy silver right now if I can have bitcoin?

The deal is, if you don't own bitcoin and gold, you should buy bitcoin. If you already own bitcoin and really want to diversif, just buy more bitcoin I really don't believe that in the long run silver will ever appreciate more than gold and bitcoin.

I am proceeding from a different idea—part of my assets are in dollars and stablecoins. What is happening today in the US (as the issuer of the dollar) and in the world as a whole creates risks of significant depreciation of dollar assets, although, let's be honest, they have excellent liquidity. I also have Bitcoin, but a 25+% loss over the last month and no guarantee of stability going forward suggest that I need to make some changes to my assets. At the same time, I understand perfectly well that silver as an asset is only suitable for the medium/long term.

PS I am also adding a small amount of Bitcoin to my reserves.

[philipma1957]

Hello, everyone!
I read a lot about markets, cryptocurrencies, of course, but also other assets, such as metals, precious metals, of course. Gold, platinum, palladium are good options, but the entry price is quite high, which means that not everyone can afford to buy them in significant bars. And then silver comes to mind. First, there are many “hints” that the metal is currently undervalued. Second, it is quite affordable today.
The essence of the question is this: there is an idea to diversify part of the stablecoins into something that will not be subject to inflation, such as the dollar value of stablecoins, and has the potential to grow in value in the same dollar.
The question is: what do you think?
I'm interested in your assessment of both the idea itself and the idea of silver.

PS: as a last resort, cast bullets and shoot the evil spirits

I have 11 or 12 kilos of it.

a kilo is now over 1800 usd

do you want some.

I own more value in silver than I do in gold.

I had a lot of copper but I sold all of that.

Btc = no1
Silver = no2

my top choices are above.

It's nice to hear the opinion of a practical investor with a good diversification concept!
I also started to shift some of my investments into silver about two to three months ago. I am confident that this will be a good move in the medium term.
Plus, market information confirms my predictions.
Question: are you accumulating large 1 kg bars, or are you also adding smaller 100-250-500 g bars to your reserves?

No I had 23 kilos at about 700 a kilo

but it is in the form of

usa silver dimes     90%
usa silver quarters 90%
usa silver halfs       90%  this is bitcointalk listing https://bitcointalk.org/index.php?topic=5567229.0
usa silver dollars    90%

1   oz bars ----------------------------sold
1   oz rounds -------------------------sold
5   oz bars----------------------------very few left
10 oz bars---------------------------- 1 left

a sterling silver  flatware set. serving for 8 left  this is ebay listing  https://www.ebay.com/itm/157511144060


So I have not listed

 500 dimes
 400 quarters
 200 dollars
 20 oz in bars

I sold about 180oz in rounds and bars

I do not do kilos as they are worth faking (over 1800 usd a kilo means fakes are worth making)

[DrBeer]

Silver is on a roll!

The price of silver has reached a historic high, exceeding $60 per ounce (according to Bloomberg https://www.bloomberg.com/news/articles/2025-12-09/silver-holds-above-60-as-traders-weigh-rate-cut-tight-supply)
On Wednesday, December 10, the price of the white metal rose 1.3% to a record $61.48 per ounce.
Gold rose slightly to $4,209.62. Platinum and palladium fell.
According to the publication, the rapid growth of silver in recent days has been supported by speculative bets that the US Federal Reserve will cut interest rates by a quarter of a point at the end of its meeting on December 9-10. Lower borrowing costs are usually a tailwind for unprofitable precious metals.
“Silver has a large retail and speculative base. Once you have momentum, it tends to bring in more money,” explained David Wilson, director of commodity strategy.
Silver has more than doubled in price this year and has risen faster than gold. Prices surged after a historic shortage of the metal in October. Although that crisis has eased as more metal flows into London vaults, borrowing rates remain elevated, signaling continued tightness.

[abhiseshakana]

Silver is on a roll!

The price of silver has reached a historic high, exceeding $60 per ounce (according to Bloomberg https://www.bloomberg.com/news/articles/2025-12-09/silver-holds-above-60-as-traders-weigh-rate-cut-tight-supply)
On Wednesday, December 10, the price of the white metal rose 1.3% to a record $61.48 per ounce.
Gold rose slightly to $4,209.62. Platinum and palladium fell.
According to the publication, the rapid growth of silver in recent days has been supported by speculative bets that the US Federal Reserve will cut interest rates by a quarter of a point at the end of its meeting on December 9-10. Lower borrowing costs are usually a tailwind for unprofitable precious metals.
“Silver has a large retail and speculative base. Once you have momentum, it tends to bring in more money,” explained David Wilson, director of commodity strategy.
Silver has more than doubled in price this year and has risen faster than gold. Prices surged after a historic shortage of the metal in October. Although that crisis has eased as more metal flows into London vaults, borrowing rates remain elevated, signaling continued tightness.

The current rally, even with prices reaching historic highs, reflects a combination of short-term market tensions rather than long-term structural changes. Bloomberg's argument suggests that the current silver rally is driven by short-term cyclical factors, such as speculation about a Fed rate cut, which is driving risk-on in high-beta commodities, momentum from retail and speculative traders, a thin market that easily triggers price movements, and a short-term physical shortage that causes a supply squeeze (a mixed demand structure: industrial + investment). When compared to the long-term fundamental rallies in gold and Bitcoin, the differences are stark.

The silver rally can be interpreted as the market pricing in Fed monetary leeway and increasing demand for anti-dilution assets. Therefore, the bullish sentiment is not just for silver but for all stores of value outside of fiat. While prices are volatile, they are also vulnerable to declines. Furthermore, despite the price explosion, the long-term fundamentals remain unchanged, with silver's structural weaknesses being high storage and transport costs, low per-unit value, making it inefficient for storing large amounts of wealth, its lack of utility as a monetary base, and its industrial dependency making prices highly cyclical. Bitcoin and gold do not face these issues. Although they can outperform tactically, they rarely outperform structurally.

[DrBeer]

Silver is on a roll!

The price of silver has reached a historic high, exceeding $60 per ounce (according to Bloomberg https://www.bloomberg.com/news/articles/2025-12-09/silver-holds-above-60-as-traders-weigh-rate-cut-tight-supply)
On Wednesday, December 10, the price of the white metal rose 1.3% to a record $61.48 per ounce.
Gold rose slightly to $4,209.62. Platinum and palladium fell.
According to the publication, the rapid growth of silver in recent days has been supported by speculative bets that the US Federal Reserve will cut interest rates by a quarter of a point at the end of its meeting on December 9-10. Lower borrowing costs are usually a tailwind for unprofitable precious metals.
“Silver has a large retail and speculative base. Once you have momentum, it tends to bring in more money,” explained David Wilson, director of commodity strategy.
Silver has more than doubled in price this year and has risen faster than gold. Prices surged after a historic shortage of the metal in October. Although that crisis has eased as more metal flows into London vaults, borrowing rates remain elevated, signaling continued tightness.

The current rally, even with prices reaching historic highs, reflects a combination of short-term market tensions rather than long-term structural changes. Bloomberg's argument suggests that the current silver rally is driven by short-term cyclical factors, such as speculation about a Fed rate cut, which is driving risk-on in high-beta commodities, momentum from retail and speculative traders, a thin market that easily triggers price movements, and a short-term physical shortage that causes a supply squeeze (a mixed demand structure: industrial + investment). When compared to the long-term fundamental rallies in gold and Bitcoin, the differences are stark.

The silver rally can be interpreted as the market pricing in Fed monetary leeway and increasing demand for anti-dilution assets. Therefore, the bullish sentiment is not just for silver but for all stores of value outside of fiat. While prices are volatile, they are also vulnerable to declines. Furthermore, despite the price explosion, the long-term fundamentals remain unchanged, with silver's structural weaknesses being high storage and transport costs, low per-unit value, making it inefficient for storing large amounts of wealth, its lack of utility as a monetary base, and its industrial dependency making prices highly cyclical. Bitcoin and gold do not face these issues. Although they can outperform tactically, they rarely outperform structurally.

I agree that today's sharp rise in the price of gold (x2 for 2025) is due to a number of factors. But among these factors there are both subjective and objective ones.
Subjective factors include, for example, the Fed's rate cut, which devalues the dollar, meaning that speculative sentiment will seek a “safe haven.”
Objective factors include the real imbalance between silver production and consumption, and the projected consumption of silver by the industrial sector.
So, most likely, the rate of increase in the price of silver will slow down, but the growth itself will not stop. But that's just my personal opinion

[Jateng]

The price of silver increases relatively less, due to which investors do not show much interest in investing in it. However, this time, due to the sudden increase in the price of gold at a very fast pace, the price of silver has also increased a lot. So now investors are also showing interest in silver and are buying a lot of silver and stocking it. Because now everyone has started thinking that since the price of gold has increased a lot and is constantly increasing, not everyone can afford to buy a lot of gold, so now there is an opportunity to buy a lot of silver and hold it, then a good amount of profit can be generated from it in the future. So silver can be a good investment.

International gold prices are increasing too much. it is inaccessible to the middle class Gold is not only used in trade or in investment but it is also a status symbol and form of wealth but it's prices increase, what you do you think that people will shift their investment on silver. Its economic theory if the price of Superior commodity rises it pushes inferior commodity out from the market. Same the applies here. Although price of gold increases but its value and liquidity make it more attractive for the investor. Silver is cheaper but it doesn't have same perception. It  is affordable but cannot able to replace the gold. It is not  appealing to the investor because its selling is not an easy. gold has global market demand chance of getting higher profit and due to liquidity people used to prefer gold over silver.

[headingnorth]

Silver is up 120% this year and just hit another ATH last night at $66.

I feel sorry for anyone not holding gold and silver at this point. Both are up massively this year but silver has outperformed
even gold by at least double and still going higher while bitcoin keeps dropping.

The industrial demand for silver is far exceeding supply which explains why it has outperformed everything else this year.
Everything from data centers and AI computer chips, electric vehicles, cell phones, nuclear power stations, medical devices,
solar panels, computers, and of course jewelry all require silver.  The modern world basically would not exist without it.

From an industrial demand point of view silver is far more important than bitcoin or even gold.
The modern world and high-tech industry can exist without bitcoin, but it absolutely cannot exist without silver.

[DrBeer]

I recently read that if we disregard the technological growth in demand for silver, its price is inversely proportional to the weakening of the dollar. In other words, silver rises when there are “problems with the dollar.” Unfortunately, I don't have any long-term statistical data — if anyone has any, I would be grateful if they could publish it here!
But if this is the case, and taking Trump's policies into account, we can say that silver will continue to rise for a long time to come!

[OgNasty]

Silver was one of the first things I began stacking as a way to save value. I like that you can physically hold it in your hand. I don’t consider it part of my investment portfolio.

It does serve a purpose every 20 years as a hedge to inflation destruction and I think for the folks who were stacking below $20/oz, we have reached an attractive point in time to benefit from that purpose.

[STT]

First basic thing to point out that does matter is to buy and hold silver is without a yield hence I classify it as a commodity purchase.   Investment to me is when you are actively in a business or yielding asset of some kind, I think definitions now ignore this distinction so perhaps its just me but the difference matters.

  As seen in the last year commodities can rise in price gigantically, things like chocolate mix are also a tradable commodity apparently and can outperform markets I've read in the past but it cant pay me an income meanwhile only in usage.
  To store commodities usually costs something hence I try to keep a note of the different behaviors I expect from these varied assets but I rate silver long term along with many commodities over the next decade.

[Rengga Jati]

According to data from Top Assets by Market Cap, silver is a top 4 asset globally. Naturally, this high ranking makes it a desirable investment. However, it's important to understand what silver is like.

Its estimated market cap is currently $3.74 trillion, just below Apple's assets and certainly higher than Bitcoin.

So, it depends on our choice whether or not to include silver in our own investments or assets.

data from: Top Assets by Market Cap)

[pliego]

According to data from Top Assets by Market Cap, silver is a top 4 asset globally. Naturally, this high ranking makes it a desirable investment. However, it's important to understand what silver is like.

Its estimated market cap is currently $3.74 trillion, just below Apple's assets and certainly higher than Bitcoin.

So, it depends on our choice whether or not to include silver in our own investments or assets.

data from: Top Assets by Market Cap)

That market cap is massive ngl XD still moves like it takes naps compared to BTC LOL

[Dogedegen]

Silver is on a roll!

Well if you view a short time frame things do look like that, but in the perspective of its long term performance things do not look so good. Check the gains in the last decades and also factor in inflation and you will see that it has been quite under performing for a long time. A doubling of the price or tripling in 10 to 15 years is not really good performance, it does not include the inflation at all. If it did the gains are almost nothing.

International gold prices are increasing too much. it is inaccessible to the middle class Gold is not only used in trade or in investment but it is also a status symbol and form of wealth but it's prices increase, what you do you think that people will shift their investment on silver.

This is not really true, there is an extreme difference in what constitutes a middle class person depending on the country. For example if you compare the income of someone who is considered middle class in the USA to someone in some less developed African or Asian country. Gold remains quite accessible for many middle class people in many countries, but not all.

Its economic theory if the price of Superior commodity rises it pushes inferior commodity out from the market. Same the applies here. Although price of gold increases but its value and liquidity make it more attractive for the investor. Silver is cheaper but it doesn't have same perception. It  is affordable but cannot able to replace the gold. It is not  appealing to the investor because its selling is not an easy. gold has global market demand chance of getting higher profit and due to liquidity people used to prefer gold over silver.

The theory you mentioned here has nothing to do with what is happening, in reality it is actually the opposite of what you wrote. To make it worse it seems to me that you are trying to cite Gresham's law and apply it to a commodity which is always invalid. Because of that you have made a catastrophic error and your whole last part collapses. I repeat again Gresham's Law can not apply on things that are not money.

The rising of prices of some commodity does not push out other commodities. What it often does is increase the demand for substitutes. As gold prices increased, the demand for silver has increased accordingly there is just some delay between these activities. The exact time in which this will happen can not be foreseen, but usually it should happen and that was demonstrated with this recent surge. As the price of silver has now increased too, something else will rise as well afterwards. There is no pushing out in free markets like this, things coexist and how they stay relevant depends on many things. Liquidity, preferences, volatility and such stuff.

[lornadane]

imo silver makes sense only as diversification, not as a main hedge. it’s cheaper to enter than gold, easy to stack slowly, and has industrial demand which gives it some upside. but it’s also more volatile and doesn’t protect value as cleanly as people think. converting a small portion of stables into silver is reasonable, going heavy is risky.

[gibrab16]

Interesting idea, and honestly a reasonable line of thinking.

Silver does make sense as a partial hedge. Compared to gold, the entry barrier is much lower, liquidity is decent, and it has both monetary *and* industrial demand, which gives it some upside if inflation, energy transition, or manufacturing demand picks up. The “undervalued” argument has been around for a while, but that also means you’re not buying into hype.

That said, silver isn’t a perfect inflation shield in the short term. It’s volatile, can lag for long periods, and doesn’t move in a straight line like people expect. Storage, security, and resale spreads are also things to consider if you go physical.

Using stablecoins as dry powder and rotating *part* of them into hard assets like silver is a balanced approach, as long as it’s diversification—not an all-in move. Think of silver as insurance with optional upside, not a moonshot.

And yeah… worst case scenario, you’ll at least have something solid in your hands when the ghosts show up 😄
 

[Smartprofit]

Silver, in my opinion, is a very interesting investment asset. In the past, I invested in silver (in the form of a bullion account at a commercial bank). For me, it was an alternative to an interest-bearing deposit account.🙋

Overall, I was pleased with the results… There is a correlation between gold and silver price movements. Moreover, silver prices can rise faster than gold prices (it should be noted that they also fall faster during bear markets).

Unlike gold, silver is not held in central bank reserves. Central banks do not buy silver. However, there is a theory that silver is undervalued relative to gold. This theory is based on the historical correlation between gold and silver prices. Personally, I would not rely on this theory when making an investment decision…🤷

If you plan to invest in physical silver, you need to consider that your savings will weigh tens, and possibly hundreds, of kilograms. In this regard, silver is significantly inferior to gold.  For example, in ancient times, pirates wore earrings and rings made of pure gold. This allowed them to carry their savings with them at all times. This is impossible with silver; such savings would be too heavy and cumbersome...

The biggest drawback of investing in silver, in my opinion, is that it doesn't generate interest, dividends, or any other recurring income (you can only count on potential appreciation, which may or may not occur).

P S.

I don't have any silver investments right now. As usual, I sold everything before the price really started to rise.🙍