Investments are always an iron clad way for one to secure their finances. Doubling in value throughout the year, a good investment can allow you to pave the way towards enjoying financial freedom with ease. Other than investing in stocks and real estate, investing in precious metals is also a lucrative option. However, precious metals encompass a wide range of metals including gold and silver.
Investing in Gold or Silver?
While many people unanimously pronounce gold to be the number one option when it comes to precious metals, many people believe that silver is a more viable option due to a number of different factors. The following are some of the most popular ones regarding why buying silver for investment is a better option:
- Less Competition – In the investment marketplace for silver, you’re going to find better prices as a large number of buyers focus more on gold. Consequently, those interested in silver can find more and better investment opportunities as compared to gold.
- More Versatility in Use – Silver makes a more viable investment as its value is impacted by the versatility of use it provides. Also an industrial metal, it has uses in the automobile and telecommunication and IT industry and is still a popular metal used in the jewellery industry. This has only added to silver’s value which has slowly gone up over the years and shows room for growth.
- Better in Crisis – In a crisis, such as a stock market crash or when the market is flooded, the value of silver is actually less volatile. While there are changes, it does not fluctuate as much as the price of gold is prone to do.
- It’s Because of History – Historically, silver coins have held lesser value but in the stock market, that isn’t always the case. A well-placed silver investment can, at times, offer you more than an investment made in gold.
Given its history in the stock market, silver is often times playing second fiddle but just as the price of gold can rise, the market value of silver can also increase; sometimes, even faster than the price of gold. A lot of the time, choosing one metal over the other is largely based on the person’s preference as silver has outperformed gold many times and vice versa.
Why Not Pick Both?
Whether you’re investing in gold or silver, you should always consider the fact that any stock is subject to fluctuations. When it comes to precious metals, the market place is exceedingly volatile and at times, emotional. With silver and gold, it is difficult to truly solve this conundrum about how well one precious metal will perform over the other one so it is a good idea to study the market before you make your investment. Available in the form of silver bullion coins and bars, silver is a viable investment but it is a good idea not to keep all your eggs in one basket.
Be smart and diversify your investments by investing in both metals. A diverse investment portfolio is not only strong but has more chances of providing you with a stronger financial foundation that you can easily build upon.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.