IS INVESTING IN SILVER EQUALLY VALUABLE AS GOLD?

Yes, we should agree to the fact that investing in Silver is as valuable as gold investments or may be more valuable than investing in gold. It might sound a little strange if we compare the prices of both the metals. However, there are few facts which might help you judge better.

Why is there a huge difference in the price among these two metals?

  • Silver and gold are extracted from the earth’s crust in the ratio of 15:1. This ratio helps us understand the supply availability which in turn influences the price of the metal.
  • About 250 grams of silver is extracted for every 28 grams (One ounce) of gold.
  • Gold is known for its illuminating form which makes it perfect for ornaments.
  • Silver is less used as an ornament and is widely used in industries and for gold, it is vice versa.

Let us now learn some facts about silver which make it a good choice for investment.

  • It comes in more quantity and any increase in value will give us more returns.
  • Silver is known for its anti-germ, anti-bacterial properties and is extensively used in dental and medical industry.
  • Silver has a lot of industrial values along with its aroma to wear as an ornament.
  • Silver is a good conductor of electricity and is being used in many electronic appliances like refrigerators, mobile phones, vacuum cleaners, computers etc.
  • Also used as a main component in film cameras.
  • Silver being the best conductor of electricity is a good replacement for copper.
  • Now, there are less silver mines and silver is majorly made as a by-product of lead, zinc and gold mining which makes it a better investment opportunity as the supply may go down and demand may sharply rise.
  • Similar to gold, silver is non-corroding and can be utilized in submerged instruments.
  • Also used for the mirror as it has best reflector properties.

Advantages of Silver:

  • Similar to gold, it has high liquidity.
  • Silver coins are the best gifts for any occasion.
  • Most people use silver god idols at home and they offer silver as a ritual during festivals.
  • It is globally accepted in place of currency.
  • Its value is not impacted by inflation.
  • It is widely used in industrial production, unlike gold.
  • Has more potential to increase in price because of its vast usage and less supply.
  • Can be purchased in lower denominations and informs of coins and bars.
  • Silver is also available as an Exchange-traded fund (ETF).
  • Silver is widely traded in commodities in stock exchange.

Disadvantages:

  • Comes in bulk quantity and storage can be a challenge if bought physically.
  • Not very acclaimed as an ornament.
  • Mostly have a wavy graph in prices and has not shown many sharp spikes.

These are some of our observations and we hope you find this helpful. Happy investing!!

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