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Pros and Cons of Silver and Gold Investing

By Edited Jan 10, 2016 0 0

There are pros and cons to every investment, gold and silver are certainly no exception. The metals have an upside potential and also carry systemic risk from outside factors and influences. Many variables go into the decision making process and the answer to this question may be very different tomorrow then it is today, and the day after.

The number one difference in these metals, is going to be the level of investment it will take to get started i.e how much capital do you actually have to invest? As gold has a high price ratio to silver on the open market and investing in gold can be pretty expensive, especially at today's rates.

Silver on the other hand lends itself to the smaller individual trying to hold a physical metal for profit. At present there is said to generally be far more room for a rise in silver than in gold. 

Another variable to consider that has an impact on the demand and therefore the rice of these metals is that of the industrial demand on each. Currently there is said to be many more industries require raw silver rather than that of gold. Supply and demand principles tell us that the demand for silver should stay high even when times begin to become more economically stable and gold begins to come back down in price, due to the ever increasing commercial demand for silver.

There are other risks when buying gold besides the exorbitant cost right now. For example there is always the possibility that any government in trouble could suddenly decide to unleash huge gold hoards to raise badly needed cash for whatever reason (causing a huge insertion of supply hence resulting in the price of gold heavily deviating). The turmoil in the world today certainly is pointing to things getting worse before they get better. This action would adversely effect gold prices world wide.

Both silver and gold have traditionally been used to hedge against inflation. A solid place to put some money where it remains liquid enough to get it when it's needed. 

One con to holding silver as opposed to gold will be the space it takes up to store. Silver at a forty to one rate can fill that safe a lot faster than a couple of gold bars. Some will invest in silver and then color up to gold when the prices are in line to make it profitable. Others will switch when the safe is full.

New investors for both metals have flooded the internet and as a result, volume is way up. It seems people believe there is safety in gold and silver and continue to flock to each.

Always remember investing in anything is a risky business. Focus and research will make the pros and cons of silver and gold investing irrelevant. With in depth knowledge and contacts (silver investment advisors and financial professionals) you'll will stand a much greater chance on successfully investing in either silver or gold.



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