Should you choose to buy gold or buy silver?
Precious metals are a lucrative asset that should be in your portfolio, but should you buy gold or buy silver? Since 2010, the return seen can be upwards of 40%. However, the market for gold and silver can fluctuate greatly. Metal value usually correlates in the opposite manner of the economy. Right now the economy is at a low, so the metal value is at an all-time high. If and when the economy starts to increase in value, the price and value of metal will decrease. This fluctuation can benefit you greatly or cause you a significant loss, so tracking the values is very important. Learning when to cash out and when to buy in can make significant increases in your portfolio. Check this book out to help you:Buy Gold and Silver Safely: The Only Book You Need to Learn How to Buy or Sell Gold and Silver
What is the past value of gold and silver?
If you track the value of gold and silver over the last 20 years, you will see that gold has mostly been in the lead over silver. Those that buy gold have seen a steady increase over the last ten years. Whereas, those that buy silver have seen ups and down with huge leaps and huge dips. The silver seems to be the riskier investment, but may have much larger gains at certain points. But how will you know and predict these ups and downs?
It is important to see where the world is going when it comes to the use of these metals. Precious metal value is mainly based on the supply and demand in the industrial setting. For example, the oil and gas industry is in their low and the renewable energy resources are booming. If you think about what metals are used in the equipment, it seems to look like silver is the big winner. Silver is used in solar panels because of its reflective nature. Silver is also used in batteries, automobiles, electronics, scientific equipment, and even in the health field. So, maybe if we track the usage, we can see a slow rise in the value of silver and a much higher demand for the precious metal. The fact that society is trying to move to renewable resources, seems to indicate that silver should be increasing in demand. The number of people that buy silver may increase exponentially, which will increase the value of your silver coins.
What is gold used for?
What is gold used for? Gold is mainly used in jewelry, but some electronics also use gold because of its conductive properties. Gold is also used in dentistry and in the medical field. Because gold is expensive, many companies attempt to find an alloy that will work just as well to save money and not use pure gold. The use of gold has decreased in industry now that science and technology have found cheaper alternatives. However, the gold standard is still gold. Many items in society must be gold, due to tradition. Wedding rings, a Grammy, and gold records would not be the same if they were not pure gold, as history dictates. Tradition wins over in many instances and gold continues to be a staple.
However, if you are more conservative and don’t want to take too much of a risk, buying gold seems to be the way to go. As the dollar decreases in value, the value of gold increases. At this point in the economy, the almighty dollar is not faring very well. Therefore, the value of gold has increased steadily for the last 10 years. Gold is not going to get you rich overnight, but it can steadily grow over time and continue to make you money with less risk.
Ultimately, the decision is yours. Depending on your age, you may want to be risky (if you are younger) or conservative (if you are older). If you are younger in age, you have time to go through the ups and downs of silver and cash in when the going is good! If you are older in age, you may want to have gold to keep your income steady and safe. The best option may be a blend of both metals in a ration that works for your timeline. Diversification is the key to any investment portfolio, so buy gold and buy silver and watch your portfolio and pocketbook grow.