Investing in precious stones is gaining popularity especially as a means of surviving the unstable economies. The most common precious stone being gold, silver is gradually catching up. The gold vs silver venture on which one should invest in can be rather confusing. To help you settle for the best investment you need to understand what each brings to the table. Initially, the price change of gold has not changed drastically over a given period as it is changing in the current times which where changes can be noted within 24hours. For example, in the late 1990’s, an ounce of gold was selling at $400. It took about 15 years for the prices of gold to increase to about $450. This is an average variance of $50 in 15 years.
Silver and Gold Market
Just like gold, silver has also had a positive turn between the years 2005 and 2011. For every troy ounce, it was about $7 and it increased to $35. This big move could not go unnoticed.
There are several industrial, commercial, as well as consumer uses for these precious metals. Silver has been in use since time memorial. From an industrial perspective, this metal was an important part used in the film industry for their cameras. One may argue that currently, the making of cameras is on a go-slow. As much as this may be true, the introduction of other technological equipment such as mobile phones has created use for silver.
Silver is one of the precious metals second in popularity from gold. The ancient men used it as money. By and by other uses came up such as making clothing, American silver eagle, jewelry, electrical appliances wood preservatives, Silver spot price and water and food purification.
Gold does not carry as much industrial use as compared to silver. One of its largest uses is that in the jewelry market. A small percentage of its use is in the dental and medical market. This however, poses a challenge due to its expensive nature. How far are people willing to go to spend on jewelry? This questions the long-term use of gold in the market especially with the increasing prices. Looking at this perspective of gold vs silver, it is evident that the uses of silver surpass the uses of gold and thus the more reason to invest in silver. The major use of gold is categorized as a luxury and not many are willing to pay heavily for luxuries such as jewelry. There are several uses for silver. In addition, there price difference also allows industries to keep using it as opposed to gold current value. Even when portraying an increase in the price of silver, it is evident that price will not be a hindrance due to its vast application in the market.
Investing in these precious metals is for the bold due to their volatility in the market. This makes them a rather long-term, as opposed to day-by-day products. It is also important that you trade with a level mind without any pressure due to difficult financial situations. Investors who have owned their gold in the long-term have reason to smile to the bank due to the increase in gold prices. This is also the case for silver investors although the growth rate is slower than that of gold. With the instability and decline in the current financial economies, the thought of owning gold and/or silver comes in as an added advantage. It helps to diversify your portfolio across different financial platforms despite the current economic instability.