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Gold vs Silver As an Investment

By Edited Nov 24, 2016 0 0

Gold vs Silver as an investment, will ultimately depend on your particular situation. There are several variables that can help you to make this choice.

First take a look at the price of an ounce of gold, compared to an ounce of silver and that alone may instantly tell you where you belong in the metal market.

There is a ratio for these two metals that will normally be somewhere between thirty and forty to one. Where silver will usually follow gold up and down, and trending according to all of the outside variables and influences that tend to influence the price for metal. 

Deciding on your place as an investor of silver or gold or both, will take analyzing your financial situation, your ability to supply the amount of capital, that any serious gold or silver investment will need, and your preference on actually holding physical metal or stock in that metal? Answer all of these questions and you'll be a bit closer to knowing what may be right for you and what you want to stay away from.

As silver has traditionally had many more uses then gold in industry. The demand for this metal in manufacturing far out weighs the demand for gold. This should make the silver call a more stable investment. Gold is used primarily in jewellery and numismatic coins. There are industrial uses but nothing like that of silver.

When we consider any investment, facts are compiled and historical records are studied. The spot price for metals, can be back tracked to see where levels were when certain indicators were influencing the price. This can help to make decisions based on similar current trends.

Silver should have the potential to reduce the ratio with gold relatively soon. Many more investors have entered the fray through the Internet and a lot of them like to physically hold the physical metal. This buying and eventual hoarding can lead to a reduction in available silver. When this happens the old supply and demand factors kick in and before you know it the price for silver is skyrocketing.

Gold on the other hand holds some serious risk factors. First of all right now the price of gold has ballooned to unheard of levels. The word 'balloon' is a good one for this observation because we all know what happens to a balloon when it gets to big. Gold can and will eventually bust its balloon and the correction will be financially painful to say the least.

Silver on the other hand is expected to hold up, even in bad times simply because there is a strong commercial demand for this metal. Deciding which precious metal to invest in between these two favorite assets is a task that needs to be looked at in depth and applied to your situation. It would be advisable to gain as much knowledge as possible on investing in these metal markets with books such as 'Rich Dad's Advisors: Guide to Investing in Gold and Silver' and 'Build Wealth with Silver', as well as visiting professional advisors.

Gold vs Silver as an investment, is an age old question. Most experts will probably answer that the right way to go, is both, allowing you to hedge ... risk.

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