Investment in gold and silver are slowly making their way into the mainstream, and investors are increasingly confident about taking their chances with these precious metals. The USA is seeing so much of deficit spending now, that investing in these metals is becoming a refuge for many. There is always a debate about which is a better investment option, gold or silver. Here are a few things to note while choosing what’s suitable for you.
Both gold and silver have been hitting highs, but both are very different investments. Silver, as a precious metal as well as industrially, depends on industry trends, where as gold, definitely trades more on expectations regarding printing of money, and of course, inflation. Gold does stand the test of time, which, money does not.
In the precious metals bulls market, silver investments do provide greater percentage gains, as opposed to gold. In addition to this obvious advantage, there is the fact that silver has a lot of demand industrially. This can only mean that investing in silver does promise good long-term returns. Silver is often regarded as the “poor man’s gold”. While there is nothing “poor” about it in actuality, it does mean masses can invest in it. Masses do tend to have more aggregate money, when compared to the fewer number of people who are wealthy.
Another important factor to consider is liquidity. While silver does provide great short-term returns, when it comes to liquidity, gold has a very definite edge over silver. As for storage and transport, gold gets the thumbs up since you can much more easily pack more dollars worth of gold than silver in a safe for storage.
Speaking of markup value, you will want to buy the precious metal as close to the value of its content. For e.g., numismatic coins are priced at heavy markups, where as bullion coins have much more pure gold content and are priced significantly lower than numismatic coins.
While silver and gold are both great investments, and you can be sure you won’t be “stuck” with either, it is important to keep the above factors in mind while choosing what’s right for you. Think about your affordability, your need for liquidity, and find a good source or retailer, and then take the leap.