Comparative Analysis

Comparative Analysis: Silver vs. Stocks and Other Commodities

When evaluated against stocks and other commodities, silver exhibits superior diversification benefits due to its low correlation with traditional markets. Equities, often vulnerable to corporate earnings cycles and market sentiment, have shown high volatility in 2025, with the S&P 500 experiencing fluctuations tied to tech sector corrections.

In contrast, silver maintains a moderately weak positive correlation to stocks, bonds, and broad commodities, enabling it to act as a portfolio stabilizer during downturns. Historical data underscores this: over the past century, silver has delivered annualized returns of approximately 3.5% adjusted for inflation, outperforming the broader commodities index at 1.24% while gaining an average of 15% during major recessions.

Compared to other commodities like oil, which are prone to demand shocks from geopolitical events, silver's industrial backbone provides greater resilience. For instance, while oil prices have swung wildly due to supply chain issues, silver has benefited from consistent demand growth, outpacing its commodity peers in the first half of 2025.

Relative to gold, silver offers higher volatility for potentially amplified returns, with experts recommending allocations of up to 15% in silver versus 8% in gold for balanced growth in 2025. This comparative edge makes silver an attractive option for investors seeking both protection and upside in a diversified strategy.