Buying Gold vs Silver. What’s the Difference?

John HutsonBlog

While there are a lot of investment opportunities available, investing in precious metals is often the most rewarding and offers a greater return on investment. The two most common metal investments are gold and silver. Knowing the differences in investing in these two will help individuals make the right choices in their investment strategies. With gold and silver exchange, individuals can get the most from their precious metal investments. 

Investing in Precious Metals Offers Vast Benefits

Precious metal investment is one of the best means of securing a solid investment. With gold and silver exchange, precious metals bring welcome income to individuals who are planning for the future. The following offers information on some of the benefits of precious metal investments. 

  • There are no barriers to investing in precious metals. Individuals can buy and sell their precious metals without going through a lot of red tape. With the ease of investment, many people find precious metals to be the best opportunity. 
  • Even when the dollar begins to stutter, individuals will find their precious metal investments hold their own. When the economy is shaking, precious metals remain strong. 
  • Unlike stocks, investing in precious metals is a tangible asset. Investors can store it themselves, store it in an offsite location, or pass it on to their heirs. 
  • Whether the economy is good or failing, individuals will find there are always people looking to purchase gold, silver, and other precious metals. Purchasing bullion almost always offers a good return on investment. 

Five Differences Between Gold and Silver Investments

There are some differences between gold and silver investments. Individuals who are interested in investing in precious metals need to be aware of the differences before they buy gold. Educating themselves on the options will help new investors get the best ROI on their investment in precious metals. 

1. The Price Of Silver Changes Rapidly

The supply of silver is around one billion ounces annually, while the supply of gold is around 120 million ounces. Because there is a larger supply of silver, and its prices are lower than gold, the price of silver can fluctuate often. This volatile nature makes many people prefer gold over silver

2. Silver Is More Affordable Than Gold

As mentioned above, silver costs less than gold. Silver has many of the same similarities as gold, and its lower price makes it more attractive to investors. Purchasing bars of silver can offer some of the same benefits as investing in gold. Both are money, and both precious metals are valuable. 

3. Silver Requires a Larger Storage Space

The difference in the dollar amount between silver and gold makes storing silver much more involved. Right now, purchasing silver gives around 80 more ounces than gold at the same price. Those who plan on investing in silver will need to have ample storage options or consider storing their silver off-site. 

4. Silver Has Greater Industrial Uses

It is important investors understand the industrial uses for silver. Around 12% of gold goes to industrial uses. On the other hand, around 56% of the silver supply is used in various industries. Because of this need, silver is often in much greater demand than gold. Keeping this fact in mind will help new investors make the right choice when investing in silver or gold. 

5. Stockpiles of Gold Are Rising, While Silver Is Falling

While governments used to stockpile silver, stockpiles have fallen dramatically over the years, and some countries are no longer stockpiling silver at all. If supply chains were to fail in the future, knowing this information is important for investors. Silver stockpiles could become in great demand. 

Whether a person chooses to invest in silver or gold, all precious metal investments offer benefits. Being aware of these benefits will help individuals make the right choice for their investment needs. 

Get Started Investing Today

Now is an opportune time for people to begin investing in gold and silver. There are differences between the two so many people make the wise choice to diversify their investments and purchase both. The sooner a person gets started on their silver and gold investment strategy, the sooner their stockpile of investments will begin to grow, giving them an advantage for the future. Precious metals continue to stand the test of time and remain a strong investment choice.  

Alliance Gold & Silver Exchange, LLC is Fort Worth Texas’ premier buyer of gold and silver. They purchase an array of precious metals including scrap and broken jewelry. They help individuals turn their outdated gold and silver jewelry into quick cash.