Gold vs Silver

Gold vs Silver: What bullion products should you invest

Benefits of gold

1) Gold is regarded as less risky than silver

• Market for gold is larger and more liquid than silver market.
• Gold prices are less volatile than silver.
• Gold is better known than silver.

2) When the dollar collapses, gold will be the new “safest” investment

The gold/silver ratio is likely to head higher (maybe around 100) and then slowly fall over next two years as the dollar panic subsides (to under 50). Of course, this isn’t guaranteed, as silver is undervalued in relation to gold.

3) Portability

You can pack a lot more into a small space which makes hiding gold a lot easier than hiding silver. At current prices, an investment in silver bullion results about fifty times the bulk and weight than the same investment in gold bullion. Large investments in silver bullion create storage and handling challenges for most people.

Gold Bars and Coins

Benefits of silver

1) It is very cheap

Right now, silver is worth $17 per ounce. (In 1980, when adjusted for inflation, silver was worth about $122 per ounce.) By contrast, gold is worth over $1100 per ounce.

2) Silver requires a minimal time investment

Unlike other investments such as stocks, businesses, index funds, or real estate, you do not have to dedicate much time to silver. With silver you just have to buy it, and hold it. You don’t need to research it any further. You don’t need to manage it. You simply hold onto it.

3) Greater percentage increase

Silver has always generated a greater percentage increase than gold during precious metals bull markets.
Silver vs Gold

Silver Bars and Rounds

4) Silver is in demand

Unlike other precious metals like gold, silver is consumable. Various industries use and require silver. It is used in electronics, cutlery, jewelry, tableware, electrical applications, rear window defrosters, etc.

5) The amount of silver in the world is limited

Silver stockpiles are decreasing. Thus, under basic principles of supply and demand, the less silver there is, the higher its demand and the higher its price.

6) The public is still oblivious to silver and its value

Most investors are not familiar with gold/silver ratio, and don’t realize that silver is undervalued.

7) Warren Buffett loves silver

The Greatest Investor of Our Time–Warren Buffett–apparently holds an enormous amount of silver. Enough said.

Gold vs Silver: Conclusions

You should invest in gold and in silver at the same time. It depends on how much you want to invest. For additional information please read my investing tips.

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