Which is Better Between Gold and Silver Investing?

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Gold and silver investing is considered as the first alternative to investments involving paper money. Gold and silver investing has advantages compared to paper money. Paper money gets devalued over time. But worth of gold and silver only increases steadily. Some qualified investors considers gold and silver as superior alternative to paper money. In this article we will solve a bugger riddle. Which is better between gold and silver investing. This debate between gold and silver has continued since time immemorial. The fact is, gold has beaten silver in all fronts.

US has been heavily buying precious metals mainly silver. When big economies like America and Europe buy gold and silver, developing countries follow the same path. There is always a tussle between gold and silver investing. It confuses many that which is better. After 2008 debt crisis in US, the world bought heavily both gold and silver. This had caused a dramatic increase in the price of silver and gold between 2008 and 2013. The price of silver rose to nearly $45/ounce. Now it looks like that at least the silver bubble has fizzed out. Gold still continues to shine.

Experts asks investors to maintain 5% gold and silver in their investment portfolio. Imagine profits of those investors who accumulated gold and silver and booked profit before 2013. It must be truly fantastic.

gold vs silver investment

There is also governments involvement to keep the prices in control. This is also also done to keep a balance between gold and silver reserves. To maintain price and reserves government either imports to boost demand, or they impose taxes to curb demand.

Geologists think that compared to gold silver is the first metal to get extinct. This is going to happen not very soon. But silver may bet extinct by 2030. Hence silver mining will only get costlier day by day. Consequently the market price will go higher. If investors are confused between gold and silver investment then silver can be the right choice.

In recent times, post 2011, we have seen a gradual decline in price of silver. I personally feel that this is only a temporary fall and eventually this fall will stabilize. The are two reasons for this fall, one as because the price levels in 2011 was completely overvalued. Government kept on buying silver incessantly and this took market price of silver above the sky. For sure this price level was not sustainable, so it is falling now. Second reason is, governments all across the world is also shelving out part of its reserves and this has a dramatic effect market price of silver. But for sure this selling is not going to continue for long. I personally feel that this falling silver prices is only giving us an opportunity to buy more. I will suggest, wait for few more months, and then start accumulating more of this precious metal.

Gold and Silver Investing

The comparison between gold vs silver investment is a favorite topic of investors. Silver is not only a precious metal for investors its other application has also found several use in industries like glass, electric conductors, normal lead acid batteries, solar panels, mobile hand-sets, computers etc. You will be pleasantly surprised to know that till date we do not have an alternative of silver in our industry. Moreover silver is also used in several life saving medicines as well. The point I am trying to make is, silver is getting scarce and its applications are increasing. Starting from investment, to industries, to medicine, every body seems to be in desperate need of silver. This is one good reason for investors to accumulate silver vs gold as an investment option.

India, China, US all are making big publicity of gold vs silver investment. People are encouraged to consider silver and gold bullions as their preferred investment options.

Silver is considered as a poor man’s gold, because as compared to gold which is currently traded at $1400 per ounce, silver trades at just $25 per ounce. Gold is purchased by investors or nations for the sake of accumulating/hoarding alone, but silver has several other industrial and medical applications apart from investment. Now, if we compare gold vs silver investment,  then silver is found to be a better utility metal than gold. Each and every ounce of gold ever mined has either been stored in the central banks of the world or in our personal lockers. Gold finds no use in industry and even negligible in medicine. The price of gold has always been trading at exorbitant prices due to huge imbalance of demand and supply. The global trend and golds brand name have also contributed to its exorbitant pricing. But compares gold vs silver investment and we find that silver is still traded at very economical price. Even small investors can go ahead and start investing in silver very easily. Even champion investors like Warren Buffett was said to have bought $130 million ounce of silver.

gold vs silver investment

Since President Bush became the US president till today, he has managed to bring a thoroughly thriving nation forma a surplus reserves of $230 billion to a deficit of $13 trillion. Even Mr. Obama stands charred trying to manage this growing debt. It is said that in next five years (2015) the debt will cross $20 trillion mark. This is one of the biggest reasons why people have begun to shift their focus away from paper money to a more reliable hard asset like investing in gold and silver. In other words we can say that faith in paper money is going down and increased investing in gold and silver is just the confirmation of this shift. I will advice my readers not to stop accumulating gold and silver due to recent price declines as highlighted in the charts.

Conclusion

Investors shall not get confused between gold and silver investing. Instead, extra money shall be converted into silver or at least gold. The timing today is just about right as prices are falling. A delayed start will make silver and gold even costlier. Truly speaking the actual price surge is still to come, not now but in next 10 years. But do not believe the speculators, the surge in prices that we say in 2009/10 does not get repeated often. But seeing the current behavior of paper currency, I foresee that such tends will happen once is a decade now. So wait for that time to come and till then go on accumulating as much gold and silver as possible.  We see minor corrections in near future. Wait for that correction and put you money in silver or at least gold.


Comments:4

  1. As you point out, the industrial demand for silver has been picking up strongly. It is an excellent conductor and will feature strongly in the manufacture of mobile phones, solar panels etc.

    As for which is a better investment: silver or gold? Well, silver has more upside, but is also more volatile. Both metals look a good bet for the next 2 years, at least.

  2. Thank you for the suuggestion. But how fast do you think that the price of silver will rise. Does silver ornaments come with the KDM facility. Please reply.

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