Afternoon everyone....
There is a great debate out there about precious metals and whether they are an investment or just a hedge against inflation.
Why can’t they be both????
And I’m going to prove to you why right now.
Yes, historically most financial advisors consider precious metals a hedge against inflation and not an investment.
But what I am about to share with you will debunk that theory 100%.
To keep this easy to follow and keep it current as well. We will look at the last three years of silver price.
I am not using the highest price of silver for the year, nor the lowest price of the year either. The numbers being used for all three years are the closing price of silver on December 31st. of each year.
The closing price of silver on December 31, 2018 was $15.49.
The closing price of silver on December 31, 2019 was $17.86. That’s an increase of 15.38%. Not a shabby return by any means.
The closing price of silver on December 31, 2020 was $26.38. That’s an increase of 47.70% over the previous year.
That means for every $1000 worth of silver you bought in 2019, it’s now worth $1447. Not bad for a hedge against inflation....
While I know there will be people saying well look at the last ten years or more and try to debunk my analysis. But you can say the same exact thing for stocks, real estate, or any other investment even cryptos.
So for those of you that think silver is not an investment. You might want to check the increase on investment before you put precious metals down.
I’m am not a financial advisor, nor am I giving you advise. I’m merely pointing out that precious metals are more then a hedge against inflation and are an investment as well.