Historically, gold is much more expensive than silver. This leads to two outcomes for investors. First of all, it's much easier to invest in silver than in gold. Gold is also more valuable than silver because it is available in much smaller quantities than silver.
It is estimated that all the gold that has been mined throughout history and that has not yet been mined can fit in just over three Olympic-sized swimming pools with a total of 244,000 metric tons. Compare that to silver, which has approximately 1.74 million metric tons that have been mined to date, not including what has not yet been mined. Those looking to sell silver will probably have a harder time finding a buyer than those who sell gold. The gold market is simply better known and better understood.
It offers a wider range of safe and reputable places to invest. If you're comfortable with the increased volatility and are buying near the start of a bull market, buying silver is like adding an extra dose of espresso to your wallet. While short-term fluctuations in the price of gold tend to receive a lot of attention, gold is relatively stable as a long-term investment compared to silver. I suggest that you start buying as much silver as your current situation allows and, to my own clients, I recommend a position in circulated silver dollars that you have in your physical possession.
In other cases, these precious metals are often used in technology, industry and infrastructure, making gold and silver extremely valuable to many companies. You can easily see that, in percentage terms, silver rises much more than gold in bull markets and falls much more than gold in bear markets. The advantage of silver over gold is that you can get all of these same benefits, but at a much lower cost. Gold and silver are precious metals that are elemental metals that occur naturally and have a high economic value.
Silver maintains its value over the long term and does well when interest rates are low and fixed-income investments don't generate much profit. This scenario may or may not develop, but it is a delicate position that could have a profound and immediate impact on the silver market. Jeff speaks regularly at conferences on precious metals, is a member of the board of directors of Strategic Wealth Preservation in Grand Cayman and provides exclusive analysis and market commentary to GoldSilver clients. Since silver is an industrial metal, it is more vulnerable to recession and to pressures affecting manufacturing companies.
Therefore, investing in silver can be a way of betting on technological advances and the clean energy movement. Silver may be a cheaper alternative to gold, but it also involves unique considerations and risks that investors must consider. Silver is used in the manufacture of a variety of things, from ostentatious jewelry to humble batteries, from medical equipment to microcircuits.