When it comes to investing in precious metals, there are really only a few options. The two main ones that have been used as a store of value for centuries are gold and silver. Platinum and palladium are two others that have not been used as much as a store of value but are still considered precious metals. So, how do you choose which metal to invest in? Well, maybe it's a good idea to have both, but what are the advantages and disadvantages of each?
I recently read an article named Gold vs. Silver: The 5 Differences That Matter Most to Investors. My points will be derived from this article.
The silver price is more volatile than gold.
Silver is more affordable than gold.
Silver requires much more storage space.
Silver has higher industrial usage.
Silver Stockpiles are Falling, Gold’s are Rising
These unbiased facts show that there are pros and cons of owning each physical asset. On one hand, I think that gold is the better store of value in the long run, and I share this opinion with central banks around the world that also share this view and stockpile gold. On the other hand, many people cannot afford to own much gold so they buy silver instead. This works totally fine, and there's nothing wrong with owning silver. My two biggest gripes with silver is that it tarnishes over time, which isn't a problem with gold, and that it takes up so much space. I recently bought a safe for my apartment, and over time I plan on filling it up with precious metals. If I were to fill it up with only silver, I could maybe fit $50K worth of silver or something like that. If I were to fill it up with only gold, I could fit more than a million dollars worth. Not that I have that much money to spend on precious metals at this time, but I do plan on owning more than a few thousand dollars worth of metals over the course of my lifetime.
With all that being said, I do own many silver coins and I do plan on buying a few more but I want to shift my focus more to gold. I also want to hear your opinion! Let me know which metal you prefer to invest in, and what you think the advantages of that metal are. It's great because everyone can have their own opinion and reason to invest.
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