Gold Vs Silver - Which Is A Better Investment Option For You?
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Gold vs silver - Which is a better investment option for you?

Digital Marketing Analyst at Digital Durja
Indians’ love for owning precious metals is not unknown. According to 2019 data by the World Gold Council, Indian households are the largest holders of the yellow metal, with around 25,000 tonnes accumulated by households. In a market that is still mostly averse to stock market investments, metals like gold and silver continue to dominate without much competition. If you are new to investing in precious metals, a common doubt you could have would be regarding choosing between gold and silver. While both are proven and time-tested, each suits different investors. Let’s figure out gold and silver investments through this article and see what the right option for you is.

 Gold vs silver - Which is a better investment option for you?

Gold and silver investments – The advantage

Both gold and silver are related to the different and varied culture India has. But that’s not the only reason why they have an edge in the country. Precious metal investments have proven to be a safe haven during economic difficulties in our country. 

During the economic crisis of 1991 and 2008, it is believed that India’s wealth in gold and silver is what helped the country keep its system running. More than that, unlike stock market investments, gold and silver are physical assets and it gives the investor more surety regarding the money they spent. Hardworking Indians tend to find this more comforting. 

Gold vs silver – Which is better?

Like said above, precious metals have always been a safe haven even when the economy is in a downward trend. It has historically safeguarded investments during financial and economic crises. But that doesn’t mean their prices are always stable. Gold and silver have upward and downward trends. Here are a few things to consider before you choose between gold and silver.

  • Volatility

Silver has historically shown more volatility than gold. This is mainly because silver is used in industries as well and higher demand in such industries will also affect the metal’s price. This gives silver more money-makingpotential than gold, which has had more stable growth over the years. Here, you can choose between silver and gold according to your investment goals and risk appetite.

  • Liquidity

Liquidly denotes how easy it is for you to sell your precious metals. Both silver and gold enjoy ample liquidity, but gold has a slight edge here due to a higher market demand. As a retail investor, it is highly unlikely that you will feel this slight edge when you are trying to sell as both are believed to be very easy to sell.

  • Demand

Both gold and silver have demand other than from households. Gold is a good conductor and is extensively used in the semiconductor industry, which has very high demand now. 

Silver is used widely in the automobile and electronics industries as well. This demand ensures high liquidly for these metals even if retail investors decide to part ways.

  • Storage

Since both are physical assets, both demand storage spaces. Silver is much denser than gold and it requires more storage space. Furthermore, if you buy gold and silver of the same amount, silver will always require more storage due to price differences.

Online gold and silver

Gone are the days where gold and silver were only considered physical investments, you can invest in both silver and gold online these days easily and trade them as you do with stocks. This dramatically increases the scope of investing these metals.

Both silver and gold are considered valuable investments and on par with stock market investments. If you are looking for a safe haven for your money, investing in gold and silver could be a wise choice. In fact, if you are looking to invest in gold but want to do away with the problems that come with the physical metal, you could also opt for a gold ETF or a sovereign gold bond to take advantage of the metal’s price fluctuations.

Thus, when looking for stocks to invest in today, it is essential to go a bit beyond your traditional instruments and look for avenues that could help you meet your goals. To meet these requirements, it is prudent to reach out to a financial expert who can guide you with your investments.