Is it too late to invest in silver? Precious metals experts weigh in

Silver has had tremendous growth over the last year. The precious metal's price has jumped by approximately 200% in just the last year, and now sits at nearly $100 per ounce — a number virtually unheard of. 

For many investors, the run-up poses quite the conundrum, however. On the one hand, the price jumps mean the possibility of big returns. On the other hand, they also signal more risk — and more loss should the market reverse course.

So what do experts think? Is there still upside to buying silver, or is the risk too great with this precious metal right now? Below, we'll break down what you need to know before getting started.

Protect your portfolio with silver before the price rises again.

Is it too late to invest in silver?

Not sure if now is the right time to get invested in silver? Here's what to consider to better inform your next steps:

It's pretty popular right now

There's no hard-and-fast answer as to whether silver's big price days are numbered — but being more informed about the metal and its performance can help you make the best decision for your portfolio and goals.

One thing to note about silver right now is that it's wildly popular. Demand for the precious metal has skyrocketed over the last 12 months, alongside its more expensive counterpart, gold. This helps support current prices and potential price growth.

"Gold and silver certainly are overbought, but that can happen when much of the investment community decides at the same time that they want in," says James Cordier, founder and head trader at OptionSpreaders.com. "We see some of the buying as fear of missing out and also bulls doubling down on what has certainly been a very profitable investment."

While the growing demand is good for price growth, it also means you'll have competition. This could make it hard to buy in, at least with physical bars and coins. Just ask Nick Fulton, managing partner of USA Pawn Stores of Mississippi. His shops have seen silver purchases soar in recent months.

"In the last few months, our average bullion silver sales have gone from $500 to around $7,000 per customer," Fulton says. 

Get started with a silver investment online here.

It has strong industrial demand

Silver isn't just popular with investors and consumers these days. It's also a much-needed component for countless products and electronic items, which also drives up demand and supports strong pricing as well. 

"Lithium-ion batteries, solar panels, health care and electronics are just a few examples of why silver's more than just jewelry," Fulton says. 

When you throw in that silver is limited in supply and quantity, that points to continued price growth, potentially long-term.

As Hiren Chandaria, managing director at Monetary Metals, explains, "Silver combines monetary characteristics with growing industrial demand, giving it a different and potentially more dynamic growth profile [than other precious metals.] Persistent supply deficits, alongside rising demand from solar panels, electrification, and electronics, create a supportive long-term backdrop."

It's high-risk, high-reward right now

At the end of the day, there's no predicting where silver might go, so for consumers, it's a matter of understanding what you want out of your investments — and what you'll risk to achieve those goals.

Compared to other precious metals options, "Silver likely offers stronger return potential," Chandaria says. "Its smaller market size, tighter supply-demand balance, and growing industrial relevance mean that investment inflows can drive larger percentage gains compared to gold."

But that bigger upside also comes with more volatility, he says, so you'll need to be able to tolerate price swings if you opt to buy in. "Silver is often described as 'gold on steroids,'" Chandaria says. "That leverage works in both directions — amplifying gains and drawdowns."

Consider both gold and silver

If you're not sure about buying silver amid the recent run-up — or you just want to temper the risk a bit, experts say mixing gold and silver investments can be a smart approach to take. 

"From a big-picture perspective, a combination makes sense for many investors seeking both protection and growth," Chandaria says. This can mean buying physical gold and silver, opening a silver or gold IRA, or buying gold or silver stocks or ETFs.

"Gold offers stability, liquidity, and diversification," he says. "Silver adds growth potential. It's more volatile than gold, but that volatility can work in investors' favor when supply-demand dynamics tighten."

Talk to an investment advisor or financial pro if you need more guidance on your investment strategy. They can point you toward the right asset classes and help you time your investments properly for your goals.