Silver Vs Stocks: Comparing Performance During Recessions

Silver has historically been a good alternative to stocks and bonds.

The recent spate of

bank failures

Many investors are seeking the metal due to rising interest rates.

prices jump

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Has silver helped investors to weather past recessions?

Below is an infographic.

via Visual Capitalist's Bruno Venditti,

Use data from

Macrotrends

Silver's price changes during recessions are compared to the S&P 500.

Silver Price during Recessions

Silver's value is derived from its scarcity, as it is a precious metal. Silver is used more in industrial applications, including electronics, medical devices, batteries, and solar panels.

Silver is also a more volatile investment than gold because the market for silver is smaller.

In 1980, the metal's price dropped by over 56%.

Hunt brothers

After a rise in the margin requirements,, who owned over half the privately-owned silver in the world, were forced to sell their stock after failing to corner the market.

Silver prices fell again during the 1990s depression before recovering steadily. This culminated in a record high in 2011, three year after the Financial Crisis of 2007-2008.

In the past five decades, only three out of eight recessions have seen silver perform better than the S&P 500: 1973, 1981, and 2007.

Silver nominal price is down 6.1% in March 2023 compared to the S&P500, which is down 3.3%.

Silver Price in 2023

Silver demand will likely increase in the coming months, which should support the price. According to the, silver's industrial market may be boosted by further gains in vehicle electricification and governments' increasing commitment to green infrastructure.

Silver Institute

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Silver may be affected by the economy if industrial users reduce their production.