When buying precious metal, the choice is limited to a few metals: silver, gold or more rarely platinum. The hesitation is usually between gold and silver and both have their advantages and disadvantages.
Here is a small comparison that will help you to buy gold or silver.
You should know that this comparison will be useful not only at the time of purchase, but will also have an impact at the time of sale. Indeed, in case of selling gold or silver, these criteria are identical on the side of the buyer you will solicit, even more so if it is a professional.
The first factor is the most obvious, the price.
The difference in price between gold and silver is explained by a first factor, rarity. Throughout history, it is estimated that 1.74 million tons of silver have been extracted from the ground, while gold represents 198,000 tons, or 8.78 times more silver than gold. But not 8.78 times cheaper!
Indeed, gold is sixty times more expensive than silver, which makes the white metal a much more affordable investment, and explains its success among novices who wish to make a first purchase of precious metal.
However, it is important to keep an eye on the fluctuations in the price of silver, which is more volatile than gold, which is comparatively more stable.
How can such a high level of volatility be explained? Quite simply because silver is not simply a safe haven, but because of the greater need for silver than gold from the industrial sector, the white metal is more affected by the jolts of the economy.
Gold, on the other hand, retains a greater propensity to serve as a safe haven and has less exposure to changes in the global economy.
Both metals remain attractive investments. The difference between the two lies in the greater volatility of the former, which can eventually mean greater risk, but whose more attractive price offers greater accessibility to less wealthy or novice investors. Gold, on the other hand, is a more stable and secure investment, but its price makes it more accessible to more experienced investors.