Gold and Silver both have quite a bit of history. Gold, especially, is an important symbol of affluence and prosperity. Most of this has to do with the fact that its value is assumed to be consistent and accessibility to gold is limited to those who can afford it. Silver is not quite as large a symbol of affluence as god is, but it is very popular in metal working and is used in the process of coin production by the mint. Access to silver is also limited and the value remains intact.
There are a number of pros and cons when it comes to investing in Silver and Gold. First, we’ll take a look at some of the positive points of investing in silver. One of the main one is that the value of a currency does not affect the price of silver. If a currency’s value decreases, the value of silver remains the same. Silver is also widely used by a number of different industries. Electrical components are commonly made using silver. There are also a number of medical uses for silver, including medications. Silver is also less expensive than gold but is considered to be almost on-par in terms of perceived value. Therefore, if you don’t have the available capital to invest in gold, silver is definitely a viable option. Finally, during a time of economic crisis, silver can become a viable form of currency.
However, just as there are several positives, there are also some negatives to investing in silver. First, you must intend on holding onto silver for quite some time because you could end up suffering if the price corrects and you only intend on making a short-term trade. Secondly, you might not be able to profit from investing in silver as much as you would be able to with other commodities. Also, unless an economy is in collapse, silver is not a currency. In order to exchange silver for services o goods you have to convert the silver into cash which can make it difficult to deal with. You also have to be aware that if you keep a large amount of silver in your possession, it can be stolen.
Gold has its own set of pros and cons. The pros are that gold is really a safe investment. Other investments have the potential to lose value and cost you money but this is not the case with gold. It also tends to hold and increase its price instead of decreasing. In the past ten years, the price has increased threefold. Also, it is easy to turn gold into cash. There are a large number of gold dealers and pawn shops where you can receive cash for gold.
There are negatives as well. For example, the high price of gold means that many traders will not be able to invest in enough gold to make their trade worth the effort. And, just like silver, gold can be stolen which will result in a loss of capital.
Investing in gold or silver might seem like a good idea, but even with the many pros, all the cons must be taken into consideration. With this list, you should be better able to make informative decisions about your investments.