Monday, April 22, 2013

Which Bullion is Best? Exploring the Differences Between Gold and Silver Investments

Investors have always been interested in gold and silver bullion. Since the Great Recession, though, more people have turned to precious metals as a safer alternative to printed money. But which metal should you buy? That depends on your specific circumstances.

Buy Gold When: You Have a Lot of Capital to Spend price of gold can fluctuate significantly from day to day, but the value remains high. That often makes it difficult for the average investor to buy large amounts of gold. On March 29th, for instance, an ounce of gold cost $1591.75. That's a lot of money to invest at once.
That makes gold most attractive to people who have a lot of capital to invest. Sure, you can buy a couple of coins here and there without spending a lot of money, but you won't see a big return on investments that small.

Buy Silver When: You Don't Have Much Capital

Silver has a much lower value per ounce. On March 28th, an ounce of silver cost $28.32. That makes it easier for the average person to buy.
If you don't have thousands of dollars to invest right now, then it makes sense to buy silver, which is more within your reach. It's essentially the same reason that someone buying stocks would avoid stocks in Berkshire Hathaway, which cost over $100,000.

Buy Gold When: You Want Higher Relative Value

At any given time, gold has a relatively higher value than silver. In fact, over the last 130 years, gold has been, on average, 16 times more valuable than silver. Today, the ratio is even more extreme. Gold is about 51 times more valuable.
If you want to purchase the more valuable bullion, then you have to go with gold. It has short-term and long-term advantages that consistently outpace silver in terms of relative value.

Buy Silver When: You Want a Metal With Real-World Uses's scarcity and beauty have always made it a high-value metal. When it comes to real-world uses, though, silver has more potential applications.
Silver is a great electrical conductor, so technology companies use it in everything from light switches to computer tablets. As technology advances, the demand for silver will increase. That could make it more valuable.  

Image via Flickr by sirqitous

Buy Gold or Silver When: You Want a Stable Investment Option

If you follow reports from US Money Reserve and other economic authorities, you already know that precious metals offer a safer alternative to cash and stocks. The value of gold and silver fluctuates over time. They have their dips and spikes just like other investments. But there has never been a gold or silver crash that left the world struggling in economic recession.
If you want your money to maintain or increase in value, bullion of any type is the right choice. It's one of the more secure ways of investing your money.
What are some reasons that you're interested in gold and silver bullion? What factors will influence your investment choices most?