Gold vs Silver: Which Precious Metal Should You Invest In?

Gold vs Silver: Which Precious Metal Should You Invest In?

should you buy gold or silver so you’ve decided to invest in Precious Metals but which one should you choose maybe you’re thinking more gold bug than silver stacker do you even have to choose should you buy both let’s find [Music] out gold or silver bullion which is the best one for your portfolio that’s the question we’re answering today with gold hitting new alltime highs this year and silver facing production issues it can be confusing to work out which one is going to be the best one for your portfolio they are both monetary metals and they both have industrial roles to imagine life on this planet without either of them is near impossible so how do you work out which one to own well first of all let’s clear up the big question should you own precious metals at all yes yes you should and why are gold and silver often lumped together when we talk about precious metals investment after all it’s not like they’re interchangeable when it comes to their industrial roles or if you were buying jewelry for example so let’s look at their similar ities they are both long-term Investments both gold and silver have been used as stores of wealth and currency for thousands of years their intrinsic value durability and tangibility have long made them favorites as long-term stores of value and this ties in with the next similarity they are both monetary Metals as said before gold and silver have long been used as currency both were used as early forms as far back as 5,000 years ago and this still continues today with the mints of sovereign Nations producing legal tender made from these two precious metals this is a clear indication that gold and silver are still considered to be forms of money the ultimate currency in terms of Economic and political uncertainty and they are both safe havens many people describe gold and silver as borderless currencies they exist outside of the Fiat banking system the populace is not reliant on the central bank for the Metal Supply demand or price we would still be able to trade using the metals even if Sovereign Nations didn’t mint them this allows gold and silver to act as both Safe Haven Investments and Safe Haven currencies they are both a hedge gold and silver bullion are invested in by individuals and large Banks alike as a hedge against a number of factors uncertainty inflation deflation macroeconomic geopolitical systemic and monetary risk and there is no third party risk currently if you hold a $20 note in your hand or $22,000 in your bank account it would account for very little if the Central Bank decided to debase the US dollar however a gold or silver coin marked $20 or $2,000 worth of gold or silver in a Secure Vault would continue to go a very long way in the event of the Central Bank destroying the currency even in less extreme events this sovereignty that comes with gold and silver is a crucial Advantage when you own either metal either in bars or coins then it is yours and only yours its price is subject to market demand and Supply but it cannot be taken from you the amount of metal cannot be diluted and you you are not at risk of someone making your wealth suddenly disappear they both play key diversification roles physical gold and physical Silvers unique properties demand that they be part of a diversified portfolio that carries other assets such as stocks shares and property they act as an insurance in times when other assets find their value has dropped or financial woses elsewhere have impacted various assets use or desirability and finally they are tangible unlike many asset classes gold and silver are tangible when you choose to buy gold and buy silver bullion you may do so so that you can hold it in your hands or to place it in Secure Storage you can choose to buy bars or coins making both Metals extremely accessible with attractive entry points for new investors the similarities between gold and silver might lead one to conclude that it does not matter which you choose to invest in but the differences between them are not insignificant and so should be considered before you make your decision first up their roles in Industry whilst gold is an extremely useful industrial metal and the use cases for it are climbing silver is known to be the indispensable metal over 50% of demand for silver comes from industry compared to Gold’s mere 10% this makes silver a double-edged sword as it is also a currency and a safe haven and this means it should perform well when economies are booming as it will be in demand for industry but it is also likely to perform well during downturns due to its monetary role one of silver and Gold’s attractions is that it could be used as phys physical money in times of extreme geopolitical Strife they are borderless and so could be used as money should you find yourself in need if you were to buy a 1 oz gold coin then this is worth significantly more than a 1 oz silver coin so it is far more practical to spend in silver coins due to their relatively low value to weight silver is a byproduct in mining the majority of new silver Supply comes from mining for other metals such as zinc and copper this means that a change in demand either from industry or investors or an increase in price is unlikely to push up Supply gold on the other hand is produced because of gold mining and so it is relatively easy to affect gold production but gold is less volatile in some environments silver investment is not for the faint-hearted gold is far less volatile in both bare and bull markets than silver and reasons for Silver’s volatility compared to Gold are varied but the two main ones are that it has a much smaller Market than gold and it has an industrial metal role which means that the price can fluctuate more more based on both demand and supply side factors for industry it is more expensive to store silver in a high Security Vault than it is gold consider how much more gold is than silver currently and then the fact that the yellow metal is a lot more dense so in short it takes considerably more space to store silver than it does gold and when it comes to recycling unlike the more expensive gold it is hard to justify recycling the small amounts of silver that are used in so many devices around us phones laptops televisions hearing aids this means that the supply of silver is depleting at a faster rate as so much is destroyed during the Industrial process and finally taxes both are treated differently in different jurisdictions when it comes to the tax you pay both when buying them and selling them so it’s crucial you investigate that further before you make a decision so there you have it the similarities and differences between gold and silver and where does that leave you which one should you invest at the time of recording both are experiencing a pullback as part of a larger Bull Run silver has lagged behind Gold’s performance but this is a very common occurrence if you believe as we do that the gold ball Market has much further to run much further then silver is likely to play catchup I believe both should be held as part of a balanced portfolio I think Silvera is a great way to start investing in Precious Metals for example I buy silver branas once a month for my children but I also invest in gold on a regular basis I treat it as a savings account and it comes down to personal preference so to help you with the next step check out one of these two videos to help you

#Gold and #silver, both are precious metals and both have a role to play in your portfolio. So how can you decide which one to invest in? Should you choose gold bars or silver coins? Or invest in silver bars and gold coins? Maybe you shouldn’t have to choose. We compare the two metals, looking at the similarities and differences between them.

Did we miss any? Let us know in the comments below.

If you’re looking to buy gold or silver coins or bars, GoldCore currently has good stocks available visit the following website to learn more:
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UK – https://www.GoldCore.co.uk
Ireland – https://www.GoldCore.ie

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