Silver is often referred to as an investment alternative of gold. However silver’s market is not completely similar to gold’s market – there are a lot of different background factors affecting silver’s price.
(Differences between gold and silver are highlighted in the 5 year gold-silver comparison charts.)
Silver’s 10 year history covers the entire financial crysis and 1-2 years preceeding it. Today it is cca. 30$ below its peak (cca. 48$ vs $18). Long term trend is questionable.
The unit of silver above is 1 oz / 1 troy ounce = 31.10348 g (Troy ounce = 1/12 troy pound. Its a measure of precious metals.).(Prices are in US dollars)
People often say that long term investments carry less risk than short term ones.
- Silver price has grown from $14 to $17.96 throughout the past 10 years which equals only 5.1% annual profit.
- 5 year yield curve spends majority of time on the positive domain.
- 3 year yield curve seem more volatile than the 5 year one.
What can you see on the chart?
You can calculate silver’s 1 month return from silver’s price today and silver’s price 30 days ago. You can also do the same calculation for yesterday and silver’s price 31 days ago etc. If you do this calculation for each days, you will get a curve of silver’s 1 month yield. The same applies to other yield periods from three months to five years.
This chart shows each yield curve in the past 10 years. It helps you to highlight how stable profits were.
Treshold marked with red shows 0% return.
This chart shows silver’s relative change against the US customer price index in the past 10 years.
There was only a short period when silver has been underperforming the US customer price index.
*charts have been created by using Chartoasis Sesame. If you feel like analyzing silver’s historical prices, you can do that for free at www.chartoasis.com/sesame . You can download silver’s historical data using this step-by-step guide.