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.
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
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.
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
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.
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
gold in the same dollar value.
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.
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: