Taking your first step in the world of precious metal investing is exciting, but it can also be intimidating. One of the hardest decisions to make is whether to invest in gold or silver, which is something that makes many first-time investors nervous. To help you compare the two and to decide which path to take, we have compiled some pros and cons for you below. Pay close attention to these and then read the summary afterwards before making your decision.
Pros and cons of Gold investing
Gold is a beautiful metal, one that has been prized by humans throughout history and one that will always have a place in our hearts.
- Gold is widely available, with many mints producing it and with an array of bars and coins to choose from.
- Gold has been prized more than any other metal (or substance for that matter) throughout human history.
- The gold markets are very stable.
- Very little gold is mined anymore, which means that it is getting rare and could be worth more. More gold comes from recycled electronics than from mines.
- Gold will never rust, stain or tarnish.
- Much of the world’s gold is hoarded, and it isn’t as widely used as silver.
- Gold is expensive and difficult for first-time buyers to get involved with.
Pros and cons of Silver investing
Silver has always played second-fiddle to gold, often seen as the lesser, cheaper brother of this precious metal. However, there are many who see it as the best metal to invest in, and they make a very good argument.
- The value of silver is much lower than gold, which means you can get more for your money. With silver, for instance, it’s easy to pickup half or even quarter-ounce coins, which have a precious metal value of around $8 and $4 respectively.
- Silver is widely available and is also more commonly found (and less commonly recognized) in boot sales, charity shops and more.
- Thanks to the use of neodymium magnets and conductivity tests, testing whether a silver coin or bar is legit is quick and easy.
- Most of the world’s silver is in use, which means there will always be a need for it.
- The silver market is much more volatile than the gold market.
- Silver has not been prized as long or as much as gold throughout human civilization.
- Silver can tarnish over time, with issues suck as “spotting” and “yellowing” serving to ruin the appearance of hoarded coins and bars.
Price is key, and those with little money to invest tend to opt for silver. Both of these metals have their plus points though and our advice is to invest in both. Gold can be hard to invest in if you don’t have much cash, but there are 1/10th ounce coins that cost around $150. If you have a lot of money then be sure to spread it around, buying tubes of silver coins (a tube typically contains 20 coins) along with your gold bars.
The trick is to find a ratio, and to do this you first need to decide whether you are investing for the short term or the long term, and which metal you think will make the sharpest improvements in that time. You should also create an investment plan, skimming some money off of your expendable income every month and sinking it into precious metals. You need to make sure that this money won’t be missed, that you can still pay the bills and enjoy yourself with what’s left. Otherwise it stops being an investment for the future and starts being a gamble.
Whichever one you choose and however you decide to invest, you’re making the right choice by investing in precious metals, joining millions of smart and shrewd investors who have trodden the same path.