Silver prices have soared to their highest since 2012, climbing over 20% this year. Investors are eyeing this affordable precious metal as a hedge against economic turmoil. Here’s why silver is stealing the spotlight in personal finance.

Affordable Diversification

With gold hitting $3,400 per ounce, silver offers a cheaper entry point. CBS News highlights its ability to diversify portfolios without breaking the bank. Silver’s price surge, driven by industrial demand for solar panels and electronics, makes it a dual-purpose investment: a safe haven and a growth asset.

Industrial Demand Drives Growth

Silver’s industrial uses are boosting its value. Demand for green tech, like solar panels, is skyrocketing. This trend could turn silver’s recent gains into a long-term pattern. Investors see it as a cost-effective alternative to gold, especially with trade war uncertainties looming.

Portfolio Protection

Economic instability, from tariffs to inflation, has investors seeking protection. Silver hedges against inflation, much like gold. Its recent rally has drawn attention from both retail and institutional investors. Investing.com notes rising futures positions in silver, signaling growing confidence in its potential.