If you asked a random person whether it’s better to invest in gold or silver, gold would probably be the most common answer. It’s GOLD after all – it’s so valuable, right? It’s the stuff that pirates dreamed about! While gold is usually a smart investment, silver can be even better. However, both metals have their advantages. Read the short rundown below to find out more.
Why Buy Gold?
Gold can be purchased in a few different ways – coins, bars, jewelry that contains gold, etc. Simply put, gold holds value. Given the fact that gold currency has been around since 800 B.C., this is a mere fact. But first you must understand, gold is not money.
So what’s the main reason you might want to buy gold? The price of course. Gold prices have gone up in recent years. That means that production has increased as well. And what does that mean for demand? It’s almost certainly not going to dip. What this all equates to is simple – buy gold now, because it’ll only cost you more in the future.
Gold is a private investment. Nobody is keeping track of how much you own. And with the economy the way it is, it can also be a wise, safe investment. Investing in it can increase your wealth when the economy isn’t doing well. Think about this. The market crashes. All you have is worthless paper money. Wouldn’t you then be happy you invested in gold?
You’ll never hear someone say, “Invest half your savings in gold.” That’s far too much. But you will hear people talk about the importance of gold when slightly diversifying your portfolio.
Why Buy Silver?
There’s no doubt gold can be a great investment. And although silver is often the symbol of “second place”, many consider it an even better investment. The main reason being: there’s less investment grade silver available than gold. Most of the same theories that apply to gold investment apply to silver as well. It’s an investment that can protect you if something disastrous happens to the economy.
What silver also possesses, though, is practical, everyday applications. It’s used in computers, cameras, jewelry, and many other products. So if it’s readily available, why is it a good investment? There’s the catch – it’s not as readily available as you may think. So much silver is being used for our everyday wants and needs, and the supply is decreasing.
So there you have it. Both gold and silver have their advantages. Speak to a financial professional if you’re interested in investing!
Note: The information above is not investment advice from The Great American Coin Company.
Gary Dyner is the owner of Great American Coin Company. Connect with him on Google+.