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Should I Invest In Gold Or Silver? – What’s Best For You?

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Gold or Silver for investment. What's best for you?The question: should i invest in gold or silver is a very common one within the precious metals community.

Have you been thinking about putting aside some of your money into precious metals but can’t really decide if you should buy silver or gold?

Then this article is for you.

We will be discussing the main differences between owning silver and gold so that you will be able to make an educated decision after this article.

In the end I will also share with you what my strategy is.

This article will be kept at a beginners level so that no matter if you have been investing in precious metals for 10 years like me or you are just starting off, you will understand the topics we are talking about.

Are you ready? Great, let’s start of with the similarities between gold and silver first because that is very important to understand.

Similarities between gold and silver – Are they that much different?

By just looking at the metals we can obviously directly see that they are different by their color. But there are also a lot of things that the two metals have in common.

Both has been seen as a store of value and money for thousands of years. Gold and silver has always played a huge role in our monetary system.

Until 1971 our paper dollars were backed up by physical gold stored in the vaults. We were on a gold standard, meaning that you could take you $20 note and walk into any bank and ask to redeem it for physical gold.

Our coins also used to contain pure silver.

Why has gold and silver been seen as money?

A quick reason why is because gold and silver are resistant to time. The people of the world has tried a lot of different things to represent wealth and money throughout history.

For example in the Roman Empire, salt were used as money at one point. But because salt goes bad after a while (especially if you live by the coast like the Romans) they quickly realized that salt is probably not the best store of your wealth.

Gold and silver doesn’t go bad over time. The same gold and silver that was used in trade by the Egyptians 5000 years ago is still with us today. It still shines as bright as it did then and it still purchase something.

Old Egyptian gold coins used in trade thousands of years ago.

There are 4 metals that are resistant to time in the periodic table: Gold, Silver, Platinum and Palladium.

All 4 of these metals have a lot in common when you talk about investing. They are all a great hedge against inflation, they are all seen as a safe haven and real assets with intrinsic value that people turn to in rough economic times.

If you invest in any of these 4 metals you are investing in precious metals. They all have a lot more in common from an investing standpoint than they differ.

In short; it doesn’t really matter if you purchase gold or silver (or platinum, palladium). You still get all the benefits of investing in precious metals.

Please leave a comment below if you have any thoughts or input on why gold and silver is money.

Of course there are some things that differ between gold and silver though. That’s what we will be looking at now.

Should I invest in gold or silver? – What’s the difference?

Thank you for reading through the similarities of gold and silver. It’s a very important concept to understand. That all precious metals are giving you safety from economic rough times and inflation.

They have also been seen as the number one store of wealth for thousands of years and will be doing so for thousands to come.

When you have decided that you want to invest in physical precious metals you have already made the big decision. Now you just need to decide what type of precious metals you would like to invest in.

The most popular is gold and silver, so let’s have a look at what’s the biggest difference between them.

Do you want to own a lot or a small amount of precious metals?

lots of silver and gold bullion

You will get more metals if you invest in silver than gold.

This may sound like a stupid question. I mean of course everyone wants to own a lot of precious metals, right?

Well, that’s not really what I meant with this heading.

Silver is a lot cheaper for every ounce (28.3 grams) than gold is. That means that if you invest say $5000 in silver you will get a lot more metal than if you would invest the same amount in gold.

The two piles are still worth $5000 each but the silver pile is much larger than the gold pile. Makes sense right?

The fact that silver is much cheaper than gold has both it’s pros and cons.

Obviously you have to store more metals if you decide to invest in silver. This can lead to higher fees at a storage facility or just that you have to make more room for it at home.

It all depends on how you want to store your coins and bullion.

Because silver is so much cheaper per ounce than gold it’s one of the biggest reasons that people choose silver instead of gold.

Because silver is cheaper it’s easier for you to start purchasing precious metals

At the time when I’m writing this article one ounce of gold costs around $1400 to buy and an ounce of silver around $22.

It goes without saying that most people don’t have $1400 that they can just peel off and go and purchase an ounce of gold, but everyone can afford $22.

This is why a lot of people choose silver instead of gold. You can start investing in precious metals through silver without a lot of money.

If you want to start investing in gold but you do not have enough money to go out and purchase full ounces you should start a free gold bullion savings account.

You can purchase gold by the grams and as little as 1 gram a month. This way you can slowly and steadily accumulate wealth in physical gold without changing your lifestyle.

Gold has monetary use and silver has industrial use

Although gold and silver both is seen as money and therefore have a monetary use, gold is almost only have monetary use.

Yes, gold is a great conductor of electricity which is why you can often see gold plated cables and so on in high end products. But because gold is so expensive most manufacturers don’t use gold in their products. Or if they do, it’s in a very small amount.

guy picking silver from a circuit board

Silver has a huge industrial use.

Silver has a huge industrial use.

Same as gold, silver is a great conductor of electricity. This is why there is silver in almost all electrical products today.

Your computer, phone, microwave, dishwasher, cars, cameras, medicin and everything else that you can think of contains a lot of silver.

By the laws of supply and demand the more demand there is for something the higher the price of that thing will be, right?

Think about it. There is only a limited amount of silver in the world today and a very limited amount getting mined every year. But each and every year our society is creating more and more electrical products.

Where is all this silver going to come from?

When there is no more silver to put in our electronics (or a short amount) silver will become even more scarce than it is today. This means that if we want more iPhones, computers and other electronics there will be an even bigger demand for silver.

With there not being that much silver in the world the price of it will skyrocket on this increased demand.

Here are some more examples of where silver is used in everyday life today.

As an example: solar power consumes around 16% of the worlds silver production today. And with countries like China saying that they will expand solar energy this number will continue to rise.

Then there is still all the consumer electronics that takes up a lot of silver production as well. At the same time as a lot of third world countries are starting to get access to things like phones and computers.

We can say it like this: If you think that there will be more things needed in the future that have silver in them than today, then silver will go up in price in a big way.

Please answer that question in the comments below. Would love to hear your view.

What’s a good balance between gold and silver then?

old scale

Find your own balance for how much gold and silver you will have in your portfolio.

I hope you have understood that there isn’t that much difference between gold and silver through an investing point of view.

They are both precious metals and gives you all the great advantages like a hedge against inflation, safety and a true store of wealth.

Silver may have a bigger upside potential because it has a huge industrial usage. The more electronics the world creates, the more silver is needed. The more silver that is needed the higher the price will go.

If it becomes almost impossible to get a hold of silver in the future the price can be astronomical.

What’s a good balance for your portfolio then?

This is very individual and I can just tell you what balance I’m having. I like to keep around a 50/50 balance between gold and silver.

Whenever I purchase more precious metals I put half of that money into buying gold and the other half into buying silver. Maybe you want to go another route? It’s all up to you.

As long as you keep transferring your declining paper dollars into hard physical precious metals you are doing the right thing.

If you have any questions or inputs please leave a comment below. I would love to help you or to discuss any topic related to precious metals.

I hope that we have answered the question: should I invest in gold or silver by now. At least got you started on the right path for doing your own research.

If you want to purchase some gold and silver right away I suggest you check out where I invest in gold and silver by clicking the button below.

Click Here To Find Out Where I Invest In Gold And Silver

Where Should You Invest In Gold And Silver


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18 Comments

  1. I’ll definitely be saving this for future readings to improve my financial status in my future. This is all so new to me and right now I feel like I’m going through information overload. Thanks for the article though.
    Thanks so much for this article. Though I’m still confused in the subject possibly because “investing” is still a new thing to me and I’m still young with almost nothing to invest with or in.

    • Hi Jaylin and thanks for your comment.

      Investing is something that you should start as early as possible in my view. I understand that when you are young there are so many other things that you rather buy and you don’t have a big income.

      But when you start getting some money I recommend you to start saving for your future. The people that start saving early will have a huge advantage in the future on the people that don’t.

      Have a look at a free gold bullion savings account where you can save as little as $50/month into gold. Or start purchasing silver which is a lot cheaper right now than gold.

      Thanks,

      Marcus

  2. Hi Marcus
    Great article, I have been thinking about buying gold myself but the price for me is restrictive. I have been looking into different ways to invest smaller amounts that can build up over time like a traditional savings account. I was just wondering on your thoughts about programs like GoldMoney (formally bitGold) or the Eric Sprott silver ETF’s that are supposed to be fully backed by physical metal. Are these just scams?
    Would I be better off just sticking with my own “hands on” physical metal?
    Thanks
    Dom

    • Hi Dominic and thanks for your comment.

      Yes the biggest issue about buying gold is that it’s a bit expensive to start with it. That’s why silver can be an option instead. I will soon do a review in goldmoney but I know that this is not a scam.

      A very serious person in the gold industry (Peter Schiff) has just been a shareholder in goldmoney as well making it even more legit. And the fact that they are a public company is great because then you can see for yourself that they have all the gold that they claim they do.

      If you want to start a savings account with physical gold I could also recommend a free gold bullion savings account from Karatbars. There you can save as little as $50/month into physical gold. Eric Sprott is a very famous guy within the precious metals community as well so me gut feeling is that his ETF is backed up, although I haven’t done any thorough investigation on it.

      It’s a great idea to stick to the hands on metals as well as setting up a gold savings account. Because you have to remember. You’re not really buying anything when you invest in gold. What you do is transfer for example $100 worth of paper dollars into $100 worth of gold. At the end of the transaction you still have $100 worth of goods.

      Keep transferring your declining paper dollars to gold and silver in the pace that you feel comfortable with.

      Please let me know if you have any other questions.

      Thanks,
      Marcus

  3. That was a good site and on a subject that is dear to me. I’m a gold investor. I like your site because it teaches the theory and historical popularity of gold with some good pictures of the subject. It’s a clean, well organized site that’s easy to navigate with informative reading.

    Thanks for the info!!

    • Thanks for the nice comment.

      Great to find another gold investor out there. Yes I love the historical part of gold because gold has been money for over 5000 years.

      It has seen wars, empires fall, natural disasters and all other things you can think of and still kept it’s purchasing power. Gold is the only true money in the world.

      If you think that a piece of paper that is backed by nothing is true wealth you will soon find out that you’re wrong. History always repeats itself and the only way to protect your wealth in a economic system that we have right now is through gold and silver.

      Thanks,

      Marcus

  4. This is a very informative and useful article, particularly for us here in the UK where interest rates are appauling for savers and the so called wonderful ISA savings account program is now a bit of a joke with interest rates so low, you may as well stash your cash under the mattress!
    A few years back we sold a 1oz krugerrand coin when gold was at its highest and got £800+ for it. We could have bought so many more when we bought it at only £74 in about 1993.
    I think gold and silver is a great investment. Unfortunately the price of gold is so inhibitive but silver is a great alternative and investing 50:50 in both precious metals is a great compromise and somehow makes saving much more exciting! Ches

    • Hi Ches and thansk for your comment.

      Yes almost all over the world the interest rates are so low right now. The reason why is so that the world can pay the interest on the enormous amount of debt that we have today.

      So to borrow money a low interest rate is great but for savers, especially retirees, the interest rates are the worst thing.

      Because just as you say you might as well stuff your cash under the mattress today.

      Imagine buying krugerands for maybe £800 in 1993 instead and selling them at the “high”. I do think that we will visit this same highs very soon. People will say in 20 years “If I just had bought more gold in 2016”.

      On a long term scale the gold price is going straight up, and the silver price too. Investing in silver now is a great way to get exposed to some precious metals without having to change lifestyle.

      Marcus

  5. Hi I have learned a lot from your website today. I think that the content within your article about gold and silver was worth reading. Could you explain to me what you mean by declining paper dollars? I think I have an idea of what it means but I just want to make sure that I’m correct. Why should people start investing in precious metals such as silver and gold? Is money actually losing it’s value?

    • Hi Scott and thanks for your nice comment.

      The reason that our paper dollars are declining in value is because we print more and more of it every day. This is what’s called inflation. For example, say that two people have $10 each and they are bidding on something that they really want. The price for that thing will most likely be $10 right. Now say that they have $20 each instead (by printing more money). Now the price of that thing is probably going to be $20 instead right?

      The thing haven’t changed. But because they both have more paper dollars in their pockets the price of that item went up. Same thing is happening in the real world today.

      Have you noticed how much more expensive food is getting year by year? How much more the price of gas is today compared to 10 years ago? The reason why is not because our food or gas has gotten better. The reason why is because our dollars are worth less and less every year meaning that they will buy less and less food and gas every year.

      You should look at my article of why gold is a good hedge against inflation where I talk more in dept about this issue and why gold will protect you from this.

      As a comparison. 1 gram of gold bought the same amount of bread 20 years ago as it does today. So if you would have had your money in gold instead of paper dollars the “price” of the bread wouldn’t have changed.

      Marcus

  6. Hey there, Very intriguing post you have here. I do believe that it would be smart to invest in some form of physical wealth in the form of precious metals. Gold is highly sought after around here. I feel like every day another gold exchange opens up nearby. With that said i’d probably lean more towards silver due to it being less expensive and easier to attain. Giving me some things to think about in regards to my future investments outside of RRSPs and Mutual Funds. Thank you!

    • Hi Patrick and thanks for the comment.

      I think that reason you talk about is exactly why silver will go up a lot in price. It’s easier for the masses to get into silver because it’s cheaper to attain.

      Gold will soon be almost impossible for people to attain if you’re not super wealthy.

      I think that you should try to keep around 10-20% of your assets in precious metals. Not just have it in paper assets.

      Thanks for proving my point?

      Marcus

  7. Hi Marcus!!

    This is a question that I’ve been thinking about for a long time. A lot of people say that you should only invest in gold and a lot of people say that you should only invest in silver.

    There is not that many people that say that you should invest in both of them.

    Super interesting to know that silver is used in basically everything today. Had no idea about that.

    I’ve heard something that there is not that much more silver today than there is gold. Could you maybe explain that a bit further?

    • Hi Chanan and thanks for your comment.

      I really do think that there is a great investment opportunity in both which is why I’m suggesting that you should have some gold and also some silver.

      Because we are using so much silver today and have been using so much silver there are some people that say that there is almost as much silver as gold out there today.

      Historically there is around 12 times as much silver as gold. Meaning that the silver price is around 1/12 of the gold price (historically).

      So one ounce of gold gave you 12 ounces of silver. Simply because of supply and demand.

      Right now you get around 60 ounces of silver on every ounce of gold. That means that if the supply and demand should be any reason for the price there should be 60 times as much silver getting mined every year than gold.

      That’s not the fact. This is what a lot of people are saying.

      That if the price of silver should be based on the supply of gold/silver the price of silver should be around 1/12 or 1/10 of gold. So one ounce of silver should be around $100.

      This is why I believe that we will see a big spike in silver prices as well. Once the price of gold and silver is set by try supply and demand market forces again.

      Thanks for the great comment,

      Marcus

  8. Fantastic explanation of investing in gold and silver. I have always been interested in investing, but I have been hesitant about who to get information from and what exactly to invest in. This article helped me understand the difference in investing and Gold and Silver and I can’t wait to take the next step towards my future investment, thank you.

    • Hi Danielle and thanks for your nice comment.

      To start investing in gold and silver is definitely not an easy task so I’m glad that you found some good information here.

      It’s way easier than investing in stocks and bonds and so on in my view though. I suggest you to read my post of why you should invest in gold.

      Knowing the differences between gold and silver is a great way to start. Please let me know if you have any questions and I will gladly try and help you.

      Have a look at starting a free gold savings account where you can start saving as little as $50/month into gold bullion.

      Marcus

  9. Yes, Marcus, I agree with you that there are not much differences besides their colors and intrinsic values. But in my personal opinion, I don’t think industrial use demand can dictate silver’s value. It’s because if silver’s value become expensive, the industrial players will easily find alternatives for this metals/conductors. I don’t buy this idea that the scarcity silver will become more obvious just because of the demand in industrial use. Given that the manipulation in the investing world and suppression of the current silver market price, I personally don’t think that 50/50 is a wise investment decision for me. Think about this… how many years this silver has been use for indusrial use, and how long the price of silver had come to this level, only $22 an ounce and the price fluctuate even greater than gold. Great informative article by the way, Marcus. Thanks for putting your effort and time to write and try to help people to kick start making educated precious metal investing decisions. Cheers~

    • Thanks for the great comment Kiev.

      I don’t really agree with you though. They have tried for so long to find conductors that are better or the same as gold and silver and they haven’t found one.

      For example Apple just bought a lot of silver and stored it in the Alps. They know that they will be using silver for a long time and they need to secure the fact that they can create their phones etc with silver in it.

      Yes there is a lot of manipulation in the precious metals markets right now. There has been a few banks that have had to pay a fine for manipulating the price of precious metals.

      Historically you have gotten 12 ounces of silver for one ounce of gold. Right now it’s like 70 ounces of silver for one ounce of gold. If this ratio comes back to their historical values we will see silver skyrocket.

      The fact that a lot of people can afford silver also plays a big role. That the masses can afford to buy it means that the price for it will go up.

      Thanks

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