When investing in precious metals, you have four choices; gold, silver, platinum, and palladium. But gold and silver are head to head among the four choices. In the precious metal industry, there are times that gold is better than silver, and there are instances that silver is a better investment choice.
There are still many investors who have a hard time deciding which fits best their investment goals. The choice between gold and silver will usually depend on three factors; wealth, risk tolerance and economic status. Let us look at the difference between these three factors and learn how they affect the precious metal investments.
The price of gold today is $1,300 per ounce. But looking back, 100 years ago, the gold price was at $20 per ounce. If you think about it, great investment right? However, it’s most expensive for most people. Not all investors have enough spare money to spend $1,300 for an ounce of gold. But then, they also wouldn’t be interested to buy a small piece of gold that be easily lost or stolen. For those who are short of funds, choose the next best alternative, silver. Today, the spot price for silver is at $17.55. Cheap and affordable for most people. Silver will be worth even more 100 years from now.
Gold and silver move in the same direction when talking about price changes. However, silver is more volatile compared to gold. This means that the silver spot price change rapidly. This metal can be good and will be at its worst during bad times. It’s too risky. But gold’s price movement is more stable.
Both gold and silver are good ways to store your wealth. Gold is much pricey compared to silver but has a lower chance of losing profit. On the other hand, silver is a better way when you are still building up your wealth since there are instances that its price can shoot up quickly. Investors who are just starting are turning to silver since its more affordable than gold.
The Economy and Precious Metal Markets.
The economy status is a very good factor to consider when you buy silver bars or gold bullion. The demand for these precious metals is based on the jewelry, investment, as well as the demand in the industry and these, will a different effect on gold or silver.
In choosing what to invest in the precious metal industry, consider all these factors. Don’t be tempted easily by the profit that you can gain. Weigh your options and test the waters. It is better to start small and see if this investment is right for you.