Is silver a good investment? What to know before you buy

Investors buy silver for several reasons. Some want protection when markets drop. Others worry about inflation eating away at their savings. But recent price headlines won’t tell you if the precious metal belongs in your portfolio.

So, is silver a good investment? It can be. Silver can act as a store of value and portfolio diversifier, but it also tends to be more volatile than gold and doesn’t generate income like stocks or bonds.

Understanding what drives silver prices and how it compares to other investments can help you decide if it’s right for your goals.

Whether silver is worth the investment depends on your goals, risk tolerance and time frame.

Buying silver can make sense if you want to add diversification to your portfolio or want to invest in precious metals at a lower price point than gold. Silver can also act as an inflation hedge, and can store value during inflation.

However, silver's prices fluctuate much more than the price of gold, so short-term risk is higher. If you invest in physical silver, it can also be harder to sell than stocks or bonds if you need to liquidate quickly.

So is silver worth the investment? It can…

Original source: https://www.usatoday.com/money/