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Gold VS Silver: Top 5 Differences That Matter Most 
To Investors

Do you want to buy or know about some precious metals such as silver and gold? 

Do you have any idea about the differences between these both precious metals 

other than the price?

Gold and silver both are really precious metals because the occurrence of these 

metals is rare in earth’s crust. If you simply want to buy gold or silver, gold is much 

more expensive than silver. Both of them have several same characteristics. For 

example, both are finite, portable, divisible, Tangible, and highly liquid.

When it comes to investing in gold VS silver, you must be aware of 5 important 

differences. These differences are extremely crucial that can uplift or demolish 

your portfolio. This article outlines the 5 major differences between gold and silver 

with investment implications perspective especially.

1. The Silver Price Is More Volatile

There is a huge difference between the supply of silver and gold annually. Annual 

silver supply is almost 1 billion ounces but the gold supply is around 120 million 

ounces. So it clearly shows that silver has a bigger market than gold. However, 

if we talk about the prices, the gold higher price makes the value of annual supply 

much more than silver. If we compare prices, annual gold supply is approximately 

9 times more than silver. Therefore, due to the low price of silver, we can say that 

gold has a higher supply than silver.

Another important factor which shows the silver’s high volatility than gold: slight 

increment in price during up days, silver price rise more than gold. This change in 

price is known as volatility among investors. The volatility can be your friend if you 

purchase and sell metals wisely. Historically, silver falls more than gold in the bear 

market; however, it rises more than gold in the bull market. If you are an investor 

and want to obtain a good profit, you should buy silver during the bull market, it will 

give you much more profit than gold.

Silver price volatility means it performs much better than gold in the upcoming bull 

market. When it comes time to sell, silver selloffs faster. So when you see that the 

bull market is at the peak, make sure to sell the silver! If you are satisfied with the 

high volatility of silver, you can purchase it near the beginning of the bull market. 

So purchasing silver like this will definitely add some extra buck into your portfolio.

2. Silver Is More Affordable

It is a quite obvious statement that silver is affordable and it has many similarities 

with gold. If you purchase physical silver, you can obtain the same benefits as gold 

such as:

  • If you have physical silver, there is no risk of default on any other investment you 
  • make.
  • It can’t be created out of thin air just like digital entries and other paper currencies. 
  • If you take a look back on the monetary history, you will come to know that silver 
  • has been utilized in coinage than gold most often.
  • It is a hard asset. In a world of digital trading, paper profits and currency creation, 
  • physical silver is a hard or tangible asset so it can’t be hacked.
  • If you have physical silver, there is no need to take help from any other party to 
  • make a contract. Therefore, there is no counterpart risk.

You can obtain all the advantages like gold but due to the lower price of silver, the 

advantages will have a low cost. That’s why silver is most often known as the “poor 

man’s gold”. So silver is affordable than gold for average investors and helps you to 

maintain the standard of your living.

3. Silver Requires Much More Storage Space

Although volatility and affordability are the advantages of silver over gold, however, 

silver takes a lot of space a compare to gold. At current prices, you can have almost 

70 more ounces than gold on the same dollar investment. Another important thing is 

that silver is less dense than gold so pure silver has a large volume than gold. By 

combining these two facts, silver can take almost 128 times more space as compared 

to gold in the same dollar value. 

  • You can hold in your hand almost $50k worth of gold. On the other hand, there are 
  • 10 large shoes boxes are needed to hold the same amount of silver.
  • The weight would be about 2.6 pounds if you purchase $50,000 worth gold. However, 
  • at the same price, the weight of silver will be about 189 pounds.
  • It is extremely easy to hide gold as compared to silver such as you can hid it in a cookie 
  • jar or socks even but silver will take a lot of space.

4. Silver Has Higher Industrial Use

The amazing fact regarding industrial usage of these precious metals is that 12 and 56% 

of gold and silver supply go to industrial usage respectively. Either you see or not, silver is 

everywhere such as medical application, electronics, batteries, and solar panels.

The demand for silver for industrial usage is really high in a strong economy. Unlike gold, 

most industrial silver is thrown away or destroyed after its consumption. It’s not just 

economic to recover even minute grain of silver from most products. Therefore, it limits 

the returning amount of silver come to the market after recycling. Every year, millions of 

ounces of silver are lost as compared to gold.

5. Silver Stockpiles Are Falling

This point maybe not worthy with the perspective of investment. However, it is a fact that 

silver stockpiles are falling and gold are rising. Prior, Govt. and other institution used to 

hold large stockpiles of silver; however, these inventories don’t contain the large stockpile 

of the silver. The main reason behind the falling of silver is that it doesn’t longer use in 


On the other hand, the world’s economies are now mostly dependent on gold. For example, 

the central bank almost contains 30,000 tons of gold in official reserves. It is almost equal 

to 96.4 million ounces.


Overall you can invest in both gold and silver because both of these metals are really 

precious and share some common characteristics with each other. However, there are 

few significant differences between gold and silver so here are 5 major distinctions:

  • Gold is less volatile than silver. It falls in bear markets less than silver.
  • Silver is more affordable than gold. It is really beneficial for small investors and best 
  • for gift-giving.

  • Gold has an advantage over gold in the term of storage.
  • Gold has less industrial usage as compared to silver. Gold is most precious than silver 
  • so even its tiny particles are recovered. On the other hand, industrial silver can’t be 
  • recovered.
  • Gold has huge stockpiles as compare to silver.