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Silver prices have ranged from $15.785 an ounce to $18.31 in 2015. This is the norm for silver. Last year it was as high as $21.965 and low as $15.315. It can be hard as an investor to stomach that kind of volatility. But even with all these violent price swings, the reasons that make silver a good investment still hold true.
At today's price of around $15.73, silver is undervalued. The markets will take note of silver's current undervaluation… eventually. That's why savvy silver investors buy at lows. Secondly, silver serves as a crisis hedge. Stocks will still drive the bulk of your portfolio growth. But silver, like gold, provides a backstop against major portfolio losses.
One bullish sign for silver in the near term is the amount of investing interest in silver right now. Just look at the holdings of popular silver ETF iShares Silver Trust (NYSE Arca: SLV).
"Investors have maintained remarkable interest in SLV, given the wild price gyrations of silver over the past four years in particular," Money Morning Resource Specialist Peter Krauth said. "That means investors like to buy and hold their silver. They're very willing to hang on to both their physical holdings and ETF shares."