Silver Prices Surge as Gold Hits $3,700—Collectors Take Notice
UPDATE: The price of gold has skyrocketed to $3,700 per ounce, doubling in value over the past two years, prompting many collectors to pivot to silver as a more affordable option. As of this week, silver is priced around $43 per ounce, making it a viable entry point for novice collectors seeking to invest in precious metals without breaking the bank.
With gold’s relentless ascent, the fear of missing out (FOMO) is palpable among investors. The latest surge in gold prices has ignited interest in silver, which has also been rallying, albeit with greater volatility. This year alone, silver’s price has jumped by 47%, outpacing gold’s 39% increase, according to data reported on Friday.
James Steel, a precious metals analyst at HSBC, noted, “Gains in gold attract ancillary buying in silver, possibly by investors who have not taken full advantage of the gold rally.” With gold expected to reach $4,000 by year-end, as predicted by market veteran Ed Yardeni, more collectors may see silver as an accessible way to engage in the precious metals market.
The high cost of gold—equivalent to the price of a used car—has deterred some potential investors. Collectors are now turning to silver, which is easier on the wallet and offers a similar investment trajectory. “I’m not going to be able to carry a suitcase full of silver around,” one collector shared, highlighting the practical considerations of investing in precious metals.
However, investing in silver comes with its own risks. “Silver is more volatile, typically both up and down, so it’s a wilder ride,” warned Stefan Gleason, CEO of Money Metals Exchange. He advises against viewing silver as a short-term investment due to its connection to industrial demand, which can fluctuate based on economic conditions.
Despite the risks, silver remains an attractive option for many. Gleason added, “Silver very much acts like a leveraged play on gold,” meaning it tends to gain more when gold prices rise, particularly in the latter stages of a bull market.
As the market adjusts, some collectors are using the current high prices of both gold and silver to cash out, increasing supply. Gleason confirms, “We’re actually doing more buying of metal back from our customers and from the public than we’ve ever done,” indicating a shift in market dynamics.
For those new to collecting, the journey involves more than just purchasing metals; it requires consideration of storage, insurance, and future resale options. However, these lessons can be learned at a fraction of the cost with silver compared to gold.
As the precious metals market continues to fluctuate, the spotlight remains on silver as a compelling alternative for investors. Whether to mitigate risk or to take advantage of rising prices, many collectors are now weighing their options—making this a pivotal moment in the world of precious metals.
Stay tuned for further updates as the market evolves.
