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Should you invest in gold or silver?

Both gold and silver have unique benefits that could influence your choice of investment. Getty Images

Turmoil in world affairs, inflation and fears of a looming recession are leading many investors to consider alternative forms of investment. Not surprisingly, many are turning to gold to act as a safe haven for their investments.

Of course, gold isn't your only option if you're looking to invest in precious metals. Silver is a commodity that also acts as a store of value and is highly liquid.

While both gold and silver are precious metals, both are uniquely distinct, with different uses for your holdings. Deciding whether to invest in gold or silver will likely come down to your goals and how these metals might fit within your overall investment strategy.

Start by requesting a free wealth protection kit from Goldco now to learn more about this unique investment opportunity.

Should you invest in gold or silver?

As with any investment, it's critical to weigh the pros and cons before making a decision with your money. Here's what to know now:

Pros of investing in gold

Gold has extrinsic value: Unlike paper currency, gold is used for jewelry, electronics, medicine and other purposes. 

Gold is easy to buy: You can buy gold through reputable dealers, pawn shops or individual sellers. 

Gold has an inverse relationship with other assets: Gold is "countercyclical," meaning it has a tendency to rise when traditional assets fall, and vice-versa. For example, a GoldSilver study states the price of gold climbed 6.1% on average during the nine largest stock market crashes since 1976. Over the same period, the stock market curtailed by 30.4%.

If you think you could benefit from investing in gold then start by getting more information with a free wealth protection kit

Cons of investing in gold

Gold can be expensive: Because gold has a smaller supply, its price is higher than that of silver. As of December 2022, the price of gold is roughly $1,800 per ounce, while the price of silver fluctuates near $23 per ounce.

Gold is not the best growth vehicle: While you can turn a profit investing in gold, the stock market can outperform gold over time. Gold prices rose by roughly 360% from 1990 to 2020 compared to a 484% increase in the S&P 500 during the same period.

Storage can be costly: Storage fees at commercial storage facilities range from 0.5% to 2% of the value of your holdings.

Pros of investing in silver

Silver is less expensive than gold: Your money can buy more silver than gold, in part because silver is more abundant in supply.

Silver has more uses: Silver is highly conductive and used in industry and commerce more than gold. It can be found in numerous applications in solar energy and electric automobiles, two high-growth industries.

Silver is tangible: Many investors value owning tangible assets like silver over intangible assets like stocks because they have a physical form and innate value.

Learn more about the benefits of investing in metals like silver and gold now or use the table below to compare some top metal companies.

Cons of investing in silver

Silver is more volatile: According to Morgan Stanley, silver prices might be two to three times more volatile than gold. That can be good for trading but less desirable if you seek stability in your portfolio.

Less demand during a downturn: Because silver has more industrial uses, its demand is more closely tied to the economy. That's a benefit in a strong economy, as industries need more silver for manufacturing. But when the economy slides and manufacturing is down, it reduces its value.

Silver is harder to store: GoldSilver data reveals that silver volume is 84% larger than its golden cousin. Accordingly, silver could require up to 128 times more space for the same investment amount than gold.

The bottom line

So, should you invest in gold or silver? There's no definitive answer because you're unique as an investor. Your decision will depend on your situation and goals and which metal provides the most benefits you are seeking.

If you're interested in gold and silver investing, you may benefit from speaking with an advisor who can help you choose the best investment for your goals.

The experts at Goldco can also advise you on the right amount to invest in these metals.

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