You’re probably already aware of the benefits of investing in precious metals to secure your retirement. Historically, gold and silver have always been a wise part of a diverse portfolio, due to their intrinsic value and resistance to market forces. Which makes the better investment, gold or silver? Here’s what you need to know about gold and silver investing.
Investing in Gold
Gold is currently trading at about $1,262 an ounce. It can be bought as bars, ingots, coins or bullion or as part of gold jewelry. Over the last 10 years, gold has roughly doubled in price, from around $600 an ounce in 2007.
Gold is a malleable yellow metal that is attractive in appearance, conductive and resistant to corrosion. It is used in electrical connectors, infrared shielding and tooth fillings, among other uses. About half of new gold produced is in jewelry.
There has been slightly upwards of 180,000 metric tons of gold unearthed to date. Gold discovered in 1848 in California inspired a massive gold rush to the western United States. The biggest mining country for gold today is China.
Investing in Silver
Silver is currently trading at about $18.60 an ounce. Over the past 10 years, silver has climbed slightly in value, having been worth between about $10 and $15 an ounce in 2007. Like gold, you can buy silver bars, ingots, coins, bullion or jewelry.
Silver is the most conductive of all metals and has a wide range of applications, including solar panels, electrical contacts, mirrors and medical applications. The main mining country of silver is Mexico, followed by China.
Should You Invest in Gold or Silver?
The main advantage that silver holds over gold is that silver is more affordable, as should be apparent. Interestingly, this is not due to the scarcity of gold. In fact, there is more gold than silver available. However, gold has been more traditionally used as a standard of currency, and is thought by most to be more attractive to display as jewelry or coins.
The other thing that may appeal to you about silver is that it has more practical applications than gold. While gold can be useful as a metal for its chemical properties, as noted above, silver is much more useful. On the other hand, silver tends to be much more volatile than gold, and volatility is something you are trying to mitigate by buying precious metals.
The answer is that you should probably buy both silver and gold when investing in precious metals, for the same reason you’re buying precious metals in the first place – to diversify your portfolio and protect your investments. Although silver is more volatile, it generally tends to follow the price of gold, so if gold is doing well, silver will probably do well too.
On top of this, in times of great prosperity, people tend to buy more goods and services use of silver in their manufacturing, making silver more valuable. If you have both in your portfolio, you can benefit from the advantages of both.
Learning to Invest in Gold and Silver
Our Precious Metals Specialists will be able to assist you in taking a well-balanced and collaborative approach. Contact Fortress Gold Group today, the experts in silver and gold investing, at 800-777-6177 or visit our website to learn more about investing in Precious Metals