Is Silver the New Real Estate? Comparing Perth’s Silver Bullion Market to WA Property Growth

Over the years, Australians have been investing in property, particularly in Western Australia, as a means to create wealth. And it is easy to understand why, with the record performance of Perth in 2024-2025. The prices are skyrocketing, and investors are getting one of the best returns in terms of rental in the country.

However, with the increase in property, there is another movement that is taking slow but sure hold on how individuals consider long-term wealth: the rise of silver as a store of value.

In this article, we discuss the purchasing power of silver in relation to real estate in WA, why investors are reassessing their strategies, and what the statistics indicate about future possibilities.

Why Compare Silver and Real Estate?

The majority of investors assess performance in dollar returns. The issue is that the dollar is continuously fluctuating in value due to the increase in money supply by the governments and an upsurge of inflation, increasing asset prices.

Examining purchasing power, which is the amount of one asset that can be exchanged for another, provides a more precise picture of long-term value. That is why analysts occasionally value houses in ounces of silver, rather than dollars. And when you do so, a long-term curve is evident.

• The following are some of the key forces behind this trend:
• Money growth tends to inflate precious metals more than property.
• With silver, physical supply boundaries cannot be constructed, as is the case with property.
• Increasing industrial demand, particularly in the solar, electronics, and healthcare sectors.
• Reduction in the supply due to the depletion of government-held stocks of silver.

Additionally, silver is subject to much stricter supply limitations than real estate, which has a practical implication for buying power during the economic cycle.

How Perth’s Real Estate Boom Fits into This Picture

The long-term purchasing power of silver is a strong narrative; however, in the short term, Perth tells a very different, though equally significant, story.

The property market did not merely expand in 2024-25, but it burst out in WA.

Perth Leads Australia in Growth

• Prices of houses have been up 14.3 percent in the year, as opposed to 3.8 percent in the whole country.
• The median house price has been pegged at $757,750, which is 22.2% higher than the preceding year.

Fast-Selling Homes

• Properties in Perth are also selling fast. The average time it takes to sell a home there is 19 days. This is the fastest of any capital city in the country.

Highest Rental Growth

• Rents are also rising, increasing by 6.7% annually. Currently, Perth is one of Australia’s leading investment destinations, with rental yields reaching 4.3%.

A Premium Market Emerging

• In 2024, WA saw 37 new suburbs enter the "Million-Dollar Club," bringing the total to 100, the first time this has happened since 2006-07.

Investors are therefore optimistic about the real estate with this momentum.

Silver vs. Perth Property

The two markets are currently strong, but for different reasons. It compares your short-term growth, long-term purchasing power, and risk protection.

1. Short-Term: Perth Property Is Winning

The price increase in Perth, the rental returns, and the demand by buyers cannot be compared in the entire country. Whether you purchased property recently in the last two years, you likely enjoyed good returns on capital and increased rental returns.

Silver, on the other hand, has been smooth but not booming.

2. Long-Term: Silver’s Purchasing Power Advantage

Silver is more attractive when viewed from a distance. The supply of silver is limited, industrial demand is increasing, and governments no longer have large reserves that can enter the market. Silver tends to gain purchasing power relative to real estate during times of:

• inflation
• currency debasement
• and asset bubbles

These conditions are recurring with the world debt at unprecedented levels and with the economies of the major world powers devaluing their currencies simultaneously.

3. Risk Protection: Silver Offers What Property Cannot

Property brings in revenues and capital growth in the long run, but it will come with:

• high entry costs
• debt exposure
• low liquidity
• ongoing maintenance

Silver, on the other hand:

• It is low-cost to buy.
• has no maintenance
• can be sold instantly
• is not dependent on house cycles.

Many investors prefer to hold some silver in addition to their real estate. It serves as a safeguard, particularly when interest rates rise or the markets become unstable.

Could Silver Outperform Real Estate in the Next Cycle?

There have been indications that point that way:

Global Conditions

• Purchasing of high gold reserves by central banks.
• The increased demand for industrial silver outpaced its supply.
• The affordability of houses is plunging in most countries.
• Easing of policies, which is not causing a drop in the mortgage rate.
• Several asset classes (stocks, bonds, and property) have bubble properties.

What This Means for WA Investors

You don't need to take sides. Some of the most intelligent investors tend to move in and out of assets where value is.

A Balanced Strategy Might Include:

• Holding Perth property, since rental yields and long-term growth remain appealing.
• Accumulating silver during affordable periods—to enjoy future purchasing power changes and mitigate against economic turbulence.
• Watching “exchange ratios”—Over time, you can gauge the number of ounces of silver it would cost you to purchase a home in Perth. The drop in the ratio can be an indication of when to trade silver for real estate and vice versa.
• Using silver as a low-cost diversification tool—especially beneficial to investors seeking to have exposure to the mining-based opportunities of WA and avoid the risks of owning individual stocks.

Conclusion

Silver can be one of the most significant assets of real estate in the future. Perth’s property market is delivering outstanding returns today. However, silver, with its constrained supply, growing industrial demand, and record performance in times of monetary stress, could bring forth significant purchasing power amplifications in the forthcoming cycles.

Knowing both markets and their relative movement would offer significant long-term opportunities to the investors of WA. Contact Perth Bullion Exchange today for expert silver investment guidance!