Full Article Link: https://www.cbsnews.com/news/is-silver-investing-too-risky-in-retirement-heres-what-experts-say/
“Investing in silver, especially for retirees, is more of a speculative diversifier than a true investment. In retirement, a lot of people are looking for consistent and predictable cash flow, and silver doesn’t provide that.”
—Evan Mills, Financial Advising Analyst at Scholar Advising
Key Takeaways
- Silver doesn’t generate income. Unlike stocks or bonds, silver produces no dividends or interest. For retirees relying on portfolio income, that makes it a supplemental holding rather than a core strategy.
- Volatility can create real risk in retirement. Silver has experienced dramatic run-ups and sharp drawdowns over short periods. Retirees with shorter time horizons may not be able to wait out large price swings.
- Liquidity matters. Physical silver can come with dealer markups, bid-ask spreads and timing challenges. Selling during a downturn can lock in losses if cash is needed quickly.
- Diversification is the real purpose. Silver can serve as a hedge against inflation and provide exposure to industrial demand, but it should function as a diversifier, not the foundation of a retirement portfolio.
- Position sizing is critical. As Mills suggests, keeping silver to a single-digit percentage allocation helps ensure it supports the portfolio without driving overall risk.