Precious metal prices have been in flux for several years now, with the cost-per-ounce of gold and silver peaking during the Ukraine crisis, as is common during geo-political strife. For people interested in investing in gold and silver, however, many experts are touting silver as the best bang for their buck.
One of the basic arguments for silver investment is that it is usually cheaper than gold. One report showed that in January of this year, the price of an ounce of silver was approximately 62 times lower than an ounce of gold. In addition, the report explains that a buyer can enter a coin shop with $1,000 and buy up to 40 ounces of silver, with no chance of purchasing even an ounce of gold, making silver much more worthwhile.
Along with the lower prices for silver and the reduced cost to buy silver coins, studies show that silver production from mining is much higher than gold. In 2012 alone, there were more than 24,000 tonnes of silver produced as compared with only 2,700 tonnes of gold. The reason for this could be that small amounts of silver are found in a host of different items from electronics, to the garments worn by medical professionals, to paint. Some smartphones and tablets even have silver in them, and this metal is also a critical part of creating solar panels.
There is also research that supports the hike in white metal investment in recent years, pushing silver to the forefront and rendering gold less desirable. The increasing price of silver over the last decade is proof that its demand is higher than ever, with an ounce now costing almost $50 compared to $5 ten years ago.
Aside from coins, experts say that investors who buy silver bullion bars could be getting the best deal. They explain that financial advisers may not promote this as a worthwhile investment, but that it is possibly the most profitable purchase. By keeping bullion bars, investors can hold on to a type of investment that will never be devalued.
Investing in gold and silver has been a part of international history, but with the latest trends, it looks like silver is increasingly becoming the metal of choice. While this not a definite and there will always be people buying and selling gold bullion, this metal may never reach its former glory again.