What to know about silver investing this June

Amid all the talk in recent years about gold investing and a surge in the price of the precious metal, it would be understandable if investors overlooked alternative precious metal investments. But that could be a costly mistake, especially for those who are attracted to the stability precious metals can offer but don’t want to pay an elevated price to secure it. 

For these investors, in particular, a silver investment could be the right choice for their portfolio. While not as well-known or as newsworthy as the yellow metal, silver currently offers investors an attractive mix of affordability and security, if invested in the right amount. As with the case with any precious metal investment, however, the approach here needs to be strategic to avoid overcrowding other income-producing assets in your portfolio. 

To that end, there are some silver items investors should consider this June to boost their chances of success. Below, we’ll detail three of them.

Start protecting your portfolio with a silver investment now.

What to know about silver investing this June

Here are three important things prospective silver investors should know about silver investing now:

The price is rising

While not nearly as robust as gold’s surge, the price of silver has also been rising and is likely to continue to in the weeks and months to come. At $37.78 per ounce, as of June 9, according to American Hartford Gold, it’s far from the $3,300-plus gold has been selling for recently. But it’s on the rise nonetheless, underlining the importance of buying in now before you get stuck paying for a higher entry price point.

“Silver is up 25% from a year ago and has room to run higher, with many analysts predicting $40 per ounce by end of year,” Brett Elliott, director of content at precious metals marketplace APMEX, recently told CBS News. “This is roughly a 20% gain from current levels, which would be an excellent return if price action follows the expected path.”

Invest in silver before the price spikes here.

It’s a cost-effective alternative to gold

Silver has industrial properties that demand could increase for, keeping the value of the metal elevated. At the same time, since it has similar abilities to diversify a portfolio and hedge against inflation, it could be the cost-effective alternative to gold that you’re looking for. With gold just down from a recent record price of $3,400 and the potential for the yellow metal to surge to $4,000 or higher, investors looking for an affordable precious metal may be well served by exploring their silver investments instead. Just understand that the price difference between the two exists for a reason and, thus, some of the quick-profit earning opportunities gold offers investors now may not be as prevalent with silver.

Investing should remain limited

With gold prices continually breaking new price records in recent years, it may be tempting to overinvest to take advantage of any new price elevations. And with silver prices also rising, albeit at a much lower cost, it may be tempting to buy large amounts of the metal to potentially earn a quick profit. But both temptations should be ignored and investors should instead keep the metal portion of their portfolio limited. 

While most experts recommend capping it at 10% of your overall portfolio, that should be divided into two if considering both gold and silver (5% each), approximately. Still, this is general guidance, applicable to a wide investing audience. For your specific portfolio, you may be better served by speaking with a gold investing expert or a company that can help you better determine the right amount of metals to invest in for your situation.

The bottom line

Precious metal investing is booming right now and investors have multiple ways to take advantage. For many, that could mean investing in silver now, thanks to a price that’s both increasing but still much more affordable than gold. Still, the investing threshold for either metal remains the same and should generally be abided by to both exploit today’s rising prices while also allowing other, non-metal assets to perform as intended. With a balanced and strategic approach, investors can benefit from a variety of assets in their portfolio, both this June and over their full investing horizon.