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

Gold vs Silver – Which is it?

Is it gold or silver – gold vs silver, which is a better investment for you? If you are following the current trends in the investment market, this is a question you must have asked yourself. Silver is climbing the investment market quickly and is attracting many potential investors towards it but how profitable it really is? Gold is the classic precious metal and most preferred one by a lot of investors but is all that glitters really a good investment for you?

Investments are crucial for everyone, they are done after a lot of deliberating and if you are confused about these two metals, trust us when we say, you are not the only one. A lot of investors are in a confusion regarding these two metals. Despite what is traditionally perceived as a huge difference between the two, somehow, in current times the lines are blurring and both seem to glitter at the same rate. However, not all that glitters is gold, but it can sometimes be silver. To find out what is best suited for you, here are few points to consider before investing in either of them.

  1.       Consider what you can buy more easily when considering gold vs silver

When investing in gold vs silver, the most important thing to consider is the profit that is made in an optimal and efficient way. You can buy approximately 3 times more silver than gold at the same price, if not more, but is more the merrier? There is a huge price difference and that can affect the returns you get on both differ greatly too. You may invest in a lot of silver but it may not get you as many returns as the returns on a smaller quantity of gold. What we are trying to say is, consider what you can buy in your budget and how long is your investment period. Gold works great for long term investments whereas silver, being cheaper works better if you are the kind who invests for a shorter amount of time.

  1.       Consider the market value

While it is a common fact that silver is much more affordable than gold, it does not mean it is cheap when in the market. Confused? Let us elaborate. When investing in precious metal, the most crucial aspect to consider is how its market value changes. Silver’s value is much more volatile than gold’s. As the market trends shift, the change in silver’s price is more rapid in its rise and fall whereas gold’s value can remain the same for longer periods of time. Silver in that sense can get a bit risky and subsequently requires a lot of patients. The trick is to not sell your silver on the first instance of the price drop, chances are it can rise just as fast. A lot of planning and patience is required when investing in silver whereas gold is a safer bet with fewer fluctuations to take care of.

  1.       Consider how you will store them

You are done investing but that is not where the worries end rather it is where it actually starts. When it comes to gold vs silver, storage and durability is an important factor and it comes at a cost which must be considered while investing. Gold does not take much storage space usually due to its less density, with silver it is quite opposite – the higher density makes it take more space in storage. It also should be noted that silver overtime tends to tarnish and hence cannot be stored for a very long without proper maintenance gold ironically, in this instance is a low maintenance metal easier to store.

  1.       Consider the metal’s demand in an economy

When you buy a metal, how well it sells depends on how much demand it has in the market or well, the economy of the country you are planning to sell it in. Silver is a popular metal, often used in various industries. Its practical use is much more than gold which makes it a more sought-after metal. However, how profitable it depends on whether the economy is in a state of inflation or recession. During a recession, industries do not produce much hence the value of silver depreciates while gold’s remain is fairly constant throughout. In a booming economy, silver is a great option, however, otherwise gold is a much a better choice.

Both metals have their own set of pros and cons, when it comes to gold vs silver –  it totally depends on your purpose when it comes to which is a better investment.


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