Introduction
Golds and Silvers are one type of physical metals that never lost their sense of regality over the years. And even more so, many have come to love Gold for its appearance, higher price value, and usefulness. However, as an investor, you would be surprised that investing more in silver as a precious metal could give major advantages.
Both of these metals’ rarity have afforded them the tag of being precious. But glaringly, many investors will rush into getting Gold and assuming it gives better returns. Now, while Gold indeed can be a good precious metal investment, Silver has some basic points that almost give it an upper hand.
Advantages Silver Investments Have Over Gold
• Silver Price Has Higher Volatility
Frankly, this fact has made investors more anxious about dealing with Silver. However, understanding the figures below the fluctuations will go a long way to establish some facts. A volatility factor doesn’t necessarily make silver a tiresome choice, rather it could be an advantage.
Based on statistics, since over a billion ounces of silver are delivered annually while about 120 million ounces of Gold are used, it’s easy to assume silver has a greater supply value. But this isn’t so as silver prices are much lower than Gold. The lower price gives Gold a greater supply value.
Hence, this explains why silver prices are more volatile, because just a light dip or increase in money is enough to remarkably affect its price. Now, you should know that as the silver price decreases in some years, it can also increase greatly in others.
In fact, on up days, that is in the bull market, silver has a higher price value compared to the value Gold gives on down days, where the latter has a higher price value. Hence, it helps to leverage this. You shouldn’t panic when the price goes down, rather wait for the beginning of the bull market.
• Silver Is Used More Industrially
It’s no surprise because silver is referred to as a “safe haven”. It has the good qualities of Gold and serves some purposes even Gold can’t. Generally, silver is used in many electrical and mechanical companies. And its demand is always high.
As silver serves many purposes as a precious metal, it is quite indispensable. And technically, in countries with a robust economy, the value of silver will be high. However, this clearly might not be the case in a highly recessive company.
Nonetheless, even records have shown that most policies regulating the stability of the economy will largely intervene in such situations. And this generally will help keep the value of silvers to an extent.
• Silver Is More Affordable Than Gold
Of course, this might be already so obvious. However, apart from silver’s affordability based on its price value, some usefulness value it possesses, also says much more. As earlier stated, silver has a lot in common with Gold as it can’t be depreciated as a physical precious metal.
It can’t also be hacked and can serve better by helping with smaller deals even Gold can’t help with. For instance, to pay for things like a new car, new house, and all that, liquidating your Gold can help, but for smaller pay, you might not want to get your Gold reduced for that. And this is where silver comes in.
Silver can help with the basics, and it is generally more affordable to invest in. Hence, it’s always advisable that as an investor who deals with gold as a precious metal, you should also have a stock of silver in store for cases such as this.
Final Remarks
Indisputably, both Gold and Silver have their distinct purposes. However, the fact remains that to have a better financial edge, you need to play the game wisely. You should understand the advantage of each precious metal and what leverage each can provide. With this knowledge comes better financial growth.