Investing in gold or silver is not for the faint of heart since both are extremely volatile commodities. But if you’re going to invest in one, which is better gold or silver?
According to a December 2013 article from Financial Sense, wholesale London gold tumbled more than $20 per ounce in the quiet trade. Investor, fund manager, and best-selling author Jim Rogers said that one of the main factors that is causing gold prices to take a dip is because India, which has been the largest buyer, has reduced its gold purchase. When asked which one is better to buy, Rogers answered: “I’m not buying either gold or silver, but if I had to buy one today, I’d buy silver because it certainly has gone down more than gold.”
Traditionally, gold has been considered the better investment since it is the only precious metal that has consistently increased in value every year for the past decade. Silver began to challenge gold by tripling in value from June 2009 to April 2011 to an all time high of $49.82 per ounce. However, those who are interested in investing in silver needs to be wary that this commodity has fallen to $35 per ounce from its high in April. Despite these figures, silver still had a bigger move than gold. According to Adrian Ash, research head at Bullion Vault, silver-coin demand amongst private investors continues to hold strong, despite 2013’s sharp drop in prices and high dealing costs.
The Silver Advantage
Because of its contributions in technology, silver consistently performs well in the precious metals market. It is currently used in the manufacture of automobiles, eyeglasses, batteries, electronics, solar panels, water purification systems, mirrors, window panels, photographs, cutlery, and even NASA spacecrafts. It is also a well-known growth inhibitor for bacteria and viruses, and it can also catalyze the production of new cells for wound and bone healing and the regeneration of lost skin. Silver is becoming more and more valuable in our growing techno generation.
Because of silver’s rising demand, its supply is becoming much more limited. The estimated supply of silver in London and Zurich fell from approximately 350 million ounces to a mere 50 million ounces for the past 20 years. Being priced lower than gold, many people debated that silver will have greater appeal on the general market. Because of its higher highs and lowers lows, investing in silver is generally for risk-takers. Although the silver has been at its lowest low for a while, its prices will climb faster than gold during bullish times.
The Gold Advantage
Gold’s enduring value is proof enough of its worth as an investment. It can also safeguard you from inflation. Since the dollar’s value has been low for nearly a decade now, investors trade in some of their cash for gold to protect their dollar’s basic value. If you are looking for stability, gold is a more secure investment. Its value is generally on the rise, and its occasional dips tend to be limited.
Both commodities have their advantages and disadvantages. If you are a steady investor, gold is right for you, but if you are the adventurous type, silver will yield unlimited potential for you. You may also split up your investments between the two to earn a share of the advantages of each.
When you’re weighing up investment opportunities, it’s important to explore every avenue and not become blinkered to one possible path. Recent technological advancements and web-based services have seen a huge surge in the number of people monitoring trading signals online, which can provide you with a number of helpful tools and constantly updated information about all manner of different markets that you can invest in, gold and silver includ