Gold or Silver - Which is the Better Investment?
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- Опубликовано: 7 май 2023
- Investing in precious metals such as gold and silver can be an effective way to diversify your portfolio, hedge against inflation, and potentially generate substantial returns. However, it's important to understand the unique characteristics of each metal and how they can affect their investability. In this video, we'll explore four key factors to consider when investing in gold and silver.
The first point to consider is the difference in the industrial uses of gold and silver. While gold is primarily a store of value, used for jewelry, coins, and other decorative items, silver has a wide range of industrial applications. In fact, more than half of all silver mined globally is used for industrial purposes, such as electronics, solar panels, and medical devices. This means that the value of silver is more closely tied to the state of the global economy than gold. When the economy is strong and demand for electronics, appliances, and other manufactured goods is high, the price of silver tends to rise. In contrast, gold tends to maintain its value during times of economic uncertainty, making it a popular safe-haven investment.
The second point to consider is the volatility of silver compared to gold. Silver is twice as volatile as gold, meaning its price can fluctuate dramatically in short periods of time. This can create opportunities for savvy investors to make substantial profits if they can time their entry and exit points effectively. However, it also means that silver comes with a higher level of risk than gold. Gold, on the other hand, tends to be much more stable, with less downside risk. This makes it a popular investment choice for conservative investors who prioritize preservation of capital over the potential for high returns.
The third point to consider is the diversification benefits of gold and silver. Gold has long been recognized as an effective diversification asset, with a low or negative correlation with other major asset classes such as stocks and bonds. This means that adding gold to a portfolio can help reduce overall risk and potentially increase returns. Silver, on the other hand, is a poor diversifier, with a high correlation with other assets.
The final point to consider is the gold-silver ratio. This is a measure of how many ounces of silver it takes to buy one ounce of gold. Historically, the ratio has ranged from around 15:1 to 100:1, with the average being around 50:1. Currently, the gold-silver ratio is around 79:1, which means that silver is relatively cheap compared to gold. Some experts believe that this presents an opportunity for investors to buy silver at a discount and potentially profit as the ratio reverts to its long-term average. However, it's important to note that the gold-silver ratio can be influenced by a wide range of factors, including changes in supply and demand, inflation, and global economic conditions.
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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
Very good topic of comparison. Silver can be used as swing trading in etf and god can be used as long term investment. Both purpose will be solved. Silver volatility will give advantage in short term while gold is best for long term investing and to give safety to your portfolio.
Good comparison with thoughtful inputs...
Thank you Ritesh ji
If I am an aggressive investor then what can be my allocation in gold and silver?
Absolutely Kamal sir... great points consolidated 🎉
Many thanks, Ankit
What about starting g SIP in both
Please clarify if you believe in "Silver Price Manipulation" theory ?
If you google "gold to silver ratio history", you can understand that Silver should be priced min 3x - 6x times than current value. Please share your views on this logic as well.
Thanks Shankar ji.. is there any suggestion from you on when to enter buying a silver etf ? Appreciate your time to respond 😊
Hi. Apologies, I haven't analysed Silver ETF but from the research, I gather a large part of it is dependent on the GOLD-SILVER ratio. If the ratio is below 60 (the long term mean), then silver is likely to rise in value. Pls research a bit more on this
Silver is best to buy now
Can we get some historical perspective of performance too
Pattu Sir has a blog post with lots of data. Pls see if that helps. freefincal.com/gold-vs-silver-returns-which-is-a-better-investment/
@@shankarnath Thanks for sharing this comprehensive and useful article
Hi, what if we invest in gold through ETF?
that's good
Can you say it in simpler version
Silver is cheap compared to gold. It's good time to buy
Sir pls make daily weekly gold and silver bees etf levels and discuss the cycle accrodding economic best time to invest
Thank you for the suggestion
Do you know any good platform for silver trading?
Sorry, no idea
Salute
Do more shorts sir
Will do
SILVER FOREVER
Why?
@@wahyuwibowo4213it's real wealth
How we can invest in that
The material of the element is also important
Gold is inert and forever while silver is not
@@sciencifyingtheworldSilver lasts forever just like gold, albeit with varying degrees of tarnish depending on its environment, which is easily reversible.
Put date on the video. Since you provide information that may change with time, date helps viewer this is old video .
👍
It is always better to buy gold but the much lesser price of silver allows the buyer to buy in more quantities.
I just buy both 😉
I just buy bitcoin
But liquidity of silver is great
It's a hedge not an investment
Gold IS a investment.
@@nederlander111 Wrong an investment makes you money. Gold doesn't make you money it protects it against inflation.
@@RomanEmpireMetals Gold does make money. My money on my bank is shit and does not make money at all. I bought gold 2 months ago and now i got a profit of 2500 dollars.
@@nederlander111 gold is money not an investment all you did was trade money back for fiat and since the Fiat is garbage the transfer rate is higher for gold to cash. It's not an Investment it's a Savings, you might have made profit this go because inflation. It's a hedge against inflation... houses and vehicles are different.. they can bring in consistent income gold cannot. Gold won't make you money like an investment, you can't rent it out you just trade it.
@@RomanEmpireMetals Gold is better then rent and or buying a house. No headache. Just lay the fck back.
All i know is im Hoarding it
Silver for corn
So basically Gold is equivalent to Bitcoin and Silver to Ethereum 😅
Don't insult gold and silver by comparing it with useless stuff.
@@sauravbhimsaria6411 You keep on saying it's useless. We will keep on making good money.
So wdu mean that Ethereum is not a best investment, but the fluctuate over the time
@@sauravbhimsaria6411when you have eyes and still can't see anything 😂
@@DeepakKumar-em4ug keep living in your dreams
Silver ETF ❤
Low liquidity ?
Silver is same as copper and these rates will fall in upcoming days
Silver has been the worst investment.
Why?
@@jj1322I can honestly say that I have made huge profits trading silver. Purchase it when it is unpopular and sell it when the price spikes substantially. Then repeat the operation when the market permits. The holding periods can be relatively lengthy sometimes.
@@michaelmartin9148How to buy it? Physical?
@@shivamkumarshrivastava5182 it's available in Amazon
@@shivamkumarshrivastava5182 silverbees etf
Bitcoin the best!