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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Well... I could only wish my Biggest Concern, was having "enough space" to put all my Silver... I do believe, the Silver/Gold Ratio will be Ten to One in the Very Near Future... So you figure out which one will do best, as an investment...
What most People don't see Coming, is the "Activation" of "Sound Money"...
October 14, 2019... 11.1 Hollywood Time...
@tipu curate
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Upvoted 👌
Thank you very much!
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I’m heavily weighted toward silver, just a tiny bit of gold by comparison.
Not at all concerned about storage space, it’s not as if my stack is going to break any supporting beams.
Fair enough, I like to keep my metals in a safe though and there’s limited space in there. If you’re comfortable leaving the silver out then by all means go for it!
I believe you need both, I started out investing in Silver .....I really love Silver!😊
After I progressed with my stack I started with stack fractional Gold, like Sovereigns.
The problem with fractional Gold is trying to obtain it at the lowest premium over spot.
Now let’s not forget the other white metals....platinum and palladium the are also good to add to your stack!👍
Yes, this is an issue with fractional gold, although if you can sell it to the right person you can keep the premium. I may add platinum and palladium eventually but for now I’ll be sticking to gold and silver.. I’ve not done too much research on those other metals
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My LCS never had very much Palladium or platinum, so when they got a few in years ago I grabbed them.
I believe Palladium is so high now because most of the worlds supply is in Russia.....
My allocation between gold and silver is about equally weighted since this past summer. Depending on your objectives, adding gold or silver during times of lower prices and holding long term is a good strategy. Shorter term, silver is likely going to outperform gold in the next 12-24 months as it catches up to the historical silver/gold ratio.
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This is a possibility, although not guaranteed, like you mentioned by using the word “likely”.
Silver is at an 85 to 1 ratio to gold. To me that just means it's a time to buy. Get some silver and trade for gold once the ratio gets lower. I'm sure you'll get a high knowing you got a deal.
Not a bad idea!
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To me it's all about the gold/silver ratio. With the ratio this high I'm buying all the silver I can. As the ratio drops over time I will be looking for an acceptable level to sell the silver and put all that new fiat into gold. Once the ratio increases again, buy silver again.