When considering owning precious metals, buying silver versus gold becomes the top consideration. On the overall, one has to consider the long term advantages of one against the other.
Advantages of Silver
Currently, buying silver has more advantages than buying gold. To start with, silver has remained cheap for a long time. This means that more people would go for silver while gold would be bought mainly by banks. Recent market trends have indicated that silver has been outperforming gold having moved from $3 to $40 for an ounce of silver.
Secondly, the amount of silver stockpiles available is not as much as that of gold. This means that while there is a possibility of unloading gold stockpiles any time, this cannot be said of silver. Besides, with over 3,000 industrial uses, there is no possibility of building silver stockpiles. Eventually, the possibility of silver outperforming gold still remains high.
The current economic trends indicate that there might soon be a collapse of paper money. This indication will make many investors to look for tangible ways of storing their wealth. They will have to consider buying silver versus gold. This is based on the fact that they are rare and most sought after metals. Silver will then have an advantage as it will become rarer with increased demand which will push up its price. Due to its affordability by even the common person, silver will be the commodity of choice for many.
The versatility of silver also makes it more advantageous to invest in than gold. It continues to have increased demand in the technological field. This means that for any eventual recovery of world economy, silver will have an integral role. Anyone investing in this precious metal will eventually reap good benefits.
Throughout history, more silver than gold has been mined. Yet most of the silver has been trashed while gold has been stockpiled. This means that the amount of silver that is remaining to be mined is most probably rarer than gold. At one point, the demand for silver will be so much that it will have more value than gold. Buying silver now would then be a worthy investment for the future when its prices shoot up due to demand.
Another advantage of buying silver is its small market as compared to gold. When the demand for more silver eventually hits the market, everybody looking for it will have nowhere else to go apart from this small market. As a consequence, the demand will propel the price of silver to an all time high while this will not be reflected in the gold market. And with the diminishing stockpiles of silver, prices might even go higher.
The intrinsic value of silver will also increase its monetary value. This means that once its prices go up, there will be no fear of a collapse as might happen with paper currency. In fact, more people will find themselves investing in this precious metal to escape from the risks involved in paper money. This will automatically make the price of this metal to go up.
If you are therefore weighing between buying silver versus gold, then the many advantages of silver make it the best choice for anyone looking to invest in precious metals.