If you’re new to investing in precious metals, you might wonder which of the two most popular, silver or gold, are best to invest in. In this post, we’re going to break down the pros and cons of each so you can make an informed decision.
Silver Pros and Cons
Right off the bat, silver is much more volatile than gold. This can be a turn on or a turn off for investors. Some might enjoy the potential for better profits, while others are more risk-averse.
The reason is, there simply isn’t as much silver to go around as there is gold. This makes it rarer and more expensive at times. If more is discovered, the price suddenly fluctuates.
Interestingly, that volatility can also make silver a cheaper investment than gold. The latter’s price might be more stable, but it usually sits at a higher level than silver prices. If you’re new to investing or don’t have as much to put in, silver might be the metal for you.
However, it’s worth noting that silver is used in many more things than gold. For instance, automobile companies, electronics, and even batteries utilize silver. This means it can be harder to access and to find. It also means the asset will never go out of vogue, so take that how you will.
Finally, if the economy tanks, investors have historically sold silver and invested in gold as a safe haven. That lack of long-term stability can be off-putting to some, especially in today’s uncertain times.
Gold Pros and Cons
Gold is one of the most popular assets in the world, but that doesn’t make it a perfect one.
In fact, the metal is expensive to acquire and store, often having a ton of fees on top of the base price. But, there’s no changing that gold is a stable investment. If you don’t want to deal with risk, those extra fees might be worth it to you.
This precious metal is used by many as a safe haven in the case of economic uncertainty, meaning it will always have value. That’s a factor both gold and silver share, actually. Gold is much easier to acquire, though, as there is simply much more of it in existence. Again, though, that’s why gold is such a stable asset.
If you’re looking for more of a long-term investment, gold’s stability will lend itself to you. Silver’s volatility certainly makes it a better short-term one.
Also, note that gold can be much harder to sell at a profit than silver. Because it’s so stable, you might be holding onto gold longer than you initially planned. This could cost you extra in monthly storage fees, too, so take that into account.
Is Gold or Silver the Better Investment?
With all of those pros and cons in mind, silver or gold being a better investment is all up to your investment personality. Regardless of which you choose, know that either one shouldn’t make up more than 10% of your investment portfolio.
That, and note that both metals are solid investments in the long run. They’ve both been around for such a long time that the risk is much less than, say, Bitcoin or another new investment.
Each metal also has various methods of investment. You can invest either physically, via an online exchange, through a cryptocurrency, or derivatives. Both are also fairly easy to sell when you’re ready to profit, too.