The Relevance of Silver in a Global Multi-Asset Portfolio
This study examines whether silver should be viewed as a distinct asset class that warrants a strategic investment allocation within an efficient multi-asset portfolio.
In recent years, institutional investors have shifted substantial parts of their portfolios outside of core holdings of equities and bonds, with many now having exposure to non-traditional asset classes including commodities and gold. Silver is often overlooked in these asset allocation decisions in favour of gold, however, despite its return characteristics being sufficiently different from gold to possibly warrant investing in it separately.
This report analyses the investment performance of silver to determine whether it could play a role as a portfolio diversifier that provides value to investors. Building on this analysis, we examine whether silver should be viewed as a distinct asset class that warrants a strategic investment allocation within an efficient multi-asset portfolio. We find that investors would benefit from an average 4-6 percent silver allocation within their portfolio, significantly higher than current holdings of silver by most institutional and individual investors.
About the team
Our macro consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Lloyd Barton
Associate Director, Macro Consulting
Padmasai Varanasi
Senior Economist, EMEA Macro Consulting
