5 Reasons for Adding Silver to Your Investment Portfolio

Silver could be the market-leading precious metal in 2023, with multiple catalysts set to push prices higher. We go into detail on five key reasons we Australian investors should add silver into their portfolios this year. Read this info in PDF version here.

Outperformance in precious metal bull markets

Silver tends to outperform gold in precious metal bull markets. This can be seen in the chart below, which shows the five largest precious metal bull markets of the last five decades. While gold prices more than doubled in these environments, the price of silver rose by almost 500% on average.

Source: LMBA, ABC Bullion

The best precious metal to hedge inflation

In high inflation environments, gold has delivered average annual gains of 15%. For silver, the number is 18% per annum, with protection against rising prices a key reason to include silver in a portfolio.

Correlation to rising stock market

Silver has varied sources of industrial demand. This means silver often performs well when the economy is growing, and the stock market is rising. This can be seen in the chart below, which shows the performance of stocks, gold, and silver, in years the stock market goes up.

Market indicators suggest silver remains undervalued

The Gold to Silver Ratio (GSR) measures how many ounces of silver are needed to equal an ounce of gold. The lower the GSR, the more expensive silver is relative to gold, while a higher the GSR indicates silver is undervalued relative to gold. The GSR ended 2022 at 76, suggesting silver remains extremely undervalued today.

Trade flexibility

Because silver is cheaper than gold, it’s easier to spread a large sum of money across multiple products. For example, as at end of December 2022, 1-kilo of gold was worth just over $86,000, while 1-kilo of silver was worth just over $1,100. This also provides greater flexibility when it comes to eventual resale.

Products to Choose From

1kg ABC Bullion Silver Cast Bar

Our signature cast bar and best seller, 1kg ABC Bullion Cast Bars come with individual serial numbers and assay certificates, guaranteeing metal weight, purity and origin.

5kg ABC Bullion Silver Cast Bar

The largest investment grade cast bar in the ABC Bullion product range, these bars are particularly popular with those looking to make a large investment into precious metals.

ABC Bullion Silver Coins

ABC Bullion offers a wide range of investment grade silver coins, from our very own Eureka range, to Maple Leafs, Brittanias and Krugerrands. Perfect for those wanting to own precious metals in coin form.

Exciting Opportunity

ABC Bullion's Gold Saver is a fully automated physical bullion accumulation plan, suitable for investing in both gold and silver. It is the perfect choice for those wanting to build savings by purchasing physical gold and silver on a regular basis. The ABC Bullion Gold Saver is akin to a savings account where you deposit money each week, fortnight or month.

Save in gold and win!

To celebrate the success of the ABC Bullion Gold Saver, we are offering customers who set up a Gold Saver product between now and the 15 February 2023 the chance to go into the draw to win $1,000 worth of gold, which will be credited to the winner's Gold Saver account.

Current Gold Saver users will automatically be entered into the draw, with the winner set to be notified personally on 16 February 2023 by telephone call, and failing that, via email.

See Terms and Conditions here.

ABC Bullion Australia

Disclaimer: This document has been prepared by Australian Bullion Company (NSW) Pty Limited (ABN 82 002 858 602) (ABC). The information contained in this document or internet related link (collectively, Document) is of a general nature and is provided for information purposes only. It is not intended to constitute advice, nor to influence any person in making a decision in relation to any precious metal or related product. To the extent that any advice is provided in this Document, it is general advice only and has been prepared without taking into account your objectives, financial situation or needs (your Personal Circumstances). Before acting on any such general advice, we recommend that you obtain professional advice and consider the appropriateness of the advice having regard to your Personal Circumstances. If the advice relates to the acquisition, or possible acquisition of any precious metal or related product, you should obtain independent professional advice before making any decision about whether to acquire it. Although the information and opinions contained in this document are based on sources we believe to be reliable, to the extent permitted by law, ABC and its associated entities do not warrant, represent or guarantee, expressly or impliedly, that the information contained in this document is accurate, complete, reliable or current. The information is subject to change without notice and we are under no obligation to update it. Past performance is not a reliable indicator of future performance. If you intend to rely on the information, you should independently verify and assess the accuracy and completeness and obtain professional advice regarding its suitability for your Personal Circumstances. To the extent possible, ABC, its associated entities, and any of its or their officers, employees and agents accepts no liability for any loss or damage relating to any use or reliance on the information in this document. It is intended for the use of ABC clients and may not be distributed or reproduced without consent. © Australian Bullion Company (NSW) Pty Limited 2020.