Doing some calculations in buying Silver and what I would get investing in a local index fund.
Index fund has "Assumed investment growth: 9%" (On a 3 year minimum investment).
In my local currency (Rand, ZAR) investing R10,000 per month with a R40,000 initial investment will make me a millionaire in 6 years. Not sure if it includes their fees.
However, if instead, I purchased R42,000 worth of Silver in 2020, which would allow me to purchase 100 1oz coins, I would be worth over a million in 5 years. In fact it would take 7 years for the index fund to equal or exceed this amount. Considering that this is assuming I won't continuously buy more silver coins every month, it seems that Silver would be the far better option. At R9100 I can buy 7 oz of Silver every month. Had I done that since 2020 I would be worth well over 3 Million.
Obviously no one could have predicted the pandemic and the subsequent affects on commodities. So should I be investing in an index fund or precious minerals such as Silver/Gold/Platinum?