Investing in Silver in 2019 | Will You Achieve A Good Return? | Anna Hilberry

Investing in Silver in 2019 | Will You Achieve A Good Return? | Anna Hilberry


Hi, I’m Anna Hilberry with National Bank Financial it’s July 4th, 2019 Gold prices over the last six months have gone up ten percent while silver has gone down about 60 basis points. This has investors asking if now is a good time to invest in silver. But how has silver treated investors over the long term? For that, I have a story for you. My great-grandfather had a PhD in Economics. He had a tenured position at a university in the state of Maryland. Now for people who don’t know where that is that’s located in the United States and all prices I’m going to give you henceforward are in the US dollars. Now in 1971 the US government went off the gold standard There was the Arab Oil Embargo inflation rates were taking off and the stock market had not been giving very good returns at the time. This left My great-grandfather feeling concerned about his financial future. He decided to invest in 51 ounce pure silver ingots. They were a Bicentennial collection issued by the Hamilton Mint. Now he purchased them in 1978. They were originally originally issued in 1976 for a price of $12.50 per ingot. He bought them at 5.40 cents in 1978. 41 years later my father has inherited the ingots. As of Friday’s close the price of silver for 1 ounce Ingot is worth $15 and 28 cents. How did that work out for a return over the last 41 years? My grandfather’s investment made 2.55% annual rate of return. Ouch Not very good. Compared to inflation over the entire period of an annual rate of 3.39% Now what if the person had invested in the S&PTSX Composite Index Total Return? Meaning invested their money and reinvested all of their interest and dividend income received. The total return over that period on an annualized basis would be 11.85%. In dollar values the difference as My grandfather had held a collection, from a $290 original purchase, could have sold it today on eBay for just over $1,400 dollars. But had he invested it in the stock market that same $290 dollars would be worth over $29,000 dollars today The difference is massive. Very clearly in this case Investing in silver was not in the investors best Interest. if you have any questions or comments, and you want to reach out to me, I’d be happy to talk to you. I’m Anna Hilberry. Thank you for listening

Be the first to comment

Leave a Reply

Your email address will not be published.


*