Recent Release | 29 Sep 2022

The Relevance of Silver in a Global Multi-Asset Portfolio

Macro Consulting Team

Oxford Economics

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
Lloyd Barton

Associate Director

+44 (0) 1865 26 8927

Lloyd Barton

Lloyd Barton

Associate Director

Oxford, United Kingdom

Lloyd Barton is an Associate Director in the EMEA Macroeconomic Consultancy division. His areas of specialism include macro forecasting & scenario analysis, international trade, banking & financial markets, real estate, and commercial advisory for infrastructure transactions. Lloyd has managed large-scale economic consulting projects across the world for a broad variety of clients, including HSBC, Prudential Financial, AustralianSuper, Baker McKenzie, The Maersk Group, Accenture and EY.

Prior to joining Oxford Economics in 2009, Lloyd worked as a Principal Researcher in the Financial Stability Department of Canada’s central bank. He has also previously worked as a Senior Economist at the UK’s Financial Services Authority, as well as the economics practice of PricewaterhouseCoopers. Lloyd holds degrees in Economics from the Universities of Cambridge and Warwick.

Padmasai Varanasi

Senior Economist

+44 (0)186 526 8922

Padmasai Varanasi

Senior Economist

Oxford, United Kingdom

Padmasai is an Economist within the EMEA Macro Consulting team, based in the Oxford office. Since joining Oxford Economics in July 2019, she has contributed to a range of projects with a focus on economic forecasting, international trade and issues relating to the financial sector. She is also the country economist responsible for Pakistan.

Before joining Oxford Economics, Padmasai worked as an Economist in the Research and Public Policy division at the World Federation of Exchanges in London where she undertook research on global stock and derivatives exchanges and the wider economy.

She holds an MSc in Economics from University College London (UCL) and has also passed the CFA Level 1 exam.

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