What Are Investors Saying About Silver in 2024?

Gold and silver have rebounded from the post-election dip. Silver fell 5.2% in November after advancing 4.3% in October and rallying 7.9% in September. It’s up 36% in 2024!

What’s driving precious metals prices back up now is geopolitical conflict as tensions heighten in the Middle East, particularly after the Assad regime in Syria was toppled earlier this week. China has also resumed central bank gold buying after a 6-month pause. And, we can look for this upward price momentum to continue…the Fed is widely expected to cut interest rates for the third time this year next week. This would be bullish for gold.

Western investors are just starting to get into this bull market, and the bull has a long way to run from here.

AND… that aligns incredibly well with our clientele. In a recent survey we conducted, you all overwhelmingly stated you are believers in owning gold and were inclined to buy more gold in the next few years. You can read part one of the survey results on gold here. But how did silver fare in the polls?

Here’s what clients had to say about silver…

Out of those surveyed, 82.4% currently own silver. As with gold, this is not surprising given that we are a precious metals firm and many who would be willing to participate are already loyal clients and believers in hard assets.

Our goals for the survey were to get a pulse on buying habits and market sentiments. Silver has yet to tap the previous bull market high of $50 an ounce, but it has certainly begun to move upwards over the past 5-6 years. Silver is a more thinly traded market than gold, and is driven more strongly by industrial demand, but investors often own silver along with gold. Silver is favored for its lower entry price point, divisibility, and profit potential.

In the beginning of October when we ran the survey, silver was roughly at the same price level that it is at today. Most who were surveyed guessed that silver would continue to go higher. Since then, silver has dipped and then rallied, but it may be some time before we see silver prices back at all-time highs.

About 5% percentage believed that current silver spot prices are too high, but most investors appear to be reading key technical signs that the bull market will continue to drive spot prices even higher.

We also wanted to get a pulse on silver buying habits over the next few years.

We looked at two different time periods… over the next six months to year period, and beyond a year from now.

A majority expressed plans to buy more silver in the next 6-12 months, and over half expressed interest in continuing to add to their position even beyond that period.

For those who answered maybe, we were deeply curious as to why.

The reasons they gave for why were surprising. Not because they were unusual, but because there was such a broad diversity in the answers.

Based on the variety of responses, we know that no matter how essential precious metals are for a portfolio, the reasons for buying are highly personal and unique to the investor.

• Same reasons as buying gold!
• Profitability
• U.S. Dollar weakness
• Fear of government debt and instability
• Saving for retirement
• Security/Safety
• Speculation
• Diversification
• Wanting to buy gold, but not able to afford it
• Savings plan
• Low prices

We were also curious about what short term drivers prompted them to make a purchase. What triggers did they look for when buying?

• Same as gold
• Having spare cashflow
• Market dips
• Advice from industry news sources
• Gold-Silver Ratio extremes
• Industrial supply/demand projections

A few responded that they accumulate on a regular schedule, but most seemed highly reactive to market conditions. We also had several who are coin collectors and buy when they find unique and interesting numismatic offers, but most tend to fall into the category of bullion investors.

It is also interesting to note how many identified their silver buying habits and triggers in relationship to their gold buying habits rather than seeing silver as a standalone asset.

These findings tend to align with what we know anecdotally about the clients we speak to when they buy from us, or at conferences and events, but these insights really drove home that investors are not a monolith. Because the reasons for owning and buying silver are so diverse, it reinforced that client need a broad range of options for when they are ready to buy.

The largest percentage of clients preferred to take delivery and store their gold at home, although many do also seem to take advantage of depository services.

A surprising amount preferred to own ETFs over physical bullion. In an increasingly digital world where most investors are familiar with equities and securities over hard assets, perhaps it should come as no shock, yet it betrays that investors may be unaware that owning a stock or ETF is not the same as owning a hard asset. While there is a correlation, a silver ETF simply does not play the same role in a portfolio as stacking physical silver.

But what did those surveyed have to say about portfolio allocation?

According to most financial experts, a typical allocation for silver in an investment portfolio would be between 5-10% of your total portfolio, with this percentage being part of a larger precious metals allocation that includes gold; however, the exact amount depends on individual risk tolerance, investment goals, and market conditions.

We hypothesized that most clients would have a more conservative allocation towards silver than gold, which was accurate. Compared to gold’s 15.7%, roughly half of participants thought silver should make up 5% or less of their total portfolio. A larger percentage of survey participants also advocated for gold allocation well above the recommendations, while a smaller percentage desired a higher allocation in silver.

With silver well below all-time highs, we hypothesized that some clients who bought silver at the highs may want to sell silver at a loss for tax advantages, and that looking further out, some may want to take advantage of rising silver for profit potential looking further out…

It turns out, most planned to hold onto their silver. As the market continues to heat up, we expect to see more profit-taking, but for the time being, most surveyed plan to hold onto their silver allocation.

Conclusion

Thank you again to those who responded to the survey.

Regardless of where you fall on the spectrum of answers, we believe that silver at current price levels is a steal. With gains over 30% for the year, a strong positive trend has been established for silver and all indicators point to a continued rise from here. It is not a question of if, but when, silver will rally to previous bull market high. Some analysts are predicting silver spot prices could go as high as $90 an ounce before the bull market cycle wraps up.

2024 has had a silver lining and silver looks inclined to shine in 2025 and beyond. It is an exciting time to own silver, particularly for investors looking for profit potential.

If you have any questions, or are ready to buy or sell silver, give us a call at 1-800-831-0007. Or visit www.assetstrategies.com to buy direct online!