Which is a Better Investment – Silver vs. Gold?

The Market for Silver and Gold:

Are you excited to know the best option for investment between the silver and gold? Now day silver has impressively run up in price and in coming years it is expected to move more upside than the gold. Price of silver per ounce has risen up from $7 to $35 during 2005 to 2011. And in percentage terms it is greater than the gold shift.

Demand for silver:

• In previous years silver was used in many industries. In the years gone by it was used as a key component in film which was used in most cameras but with the emergence of digital cameras it became obsolete.

• Silver has low resistivity and due to this reason it is used virtually in every electrical appliance. More news information can be found at  http://economictimes.indiatimes.com/news/international/business/nyrstar-agrees-sale-option-for-peruvian-mine-to-great-panther-silver-limited/articleshow/47341564.cms

• Silver has antibacterial properties and therefore it’s greatly used in medical profession.

• Silver is also utilized in water purification and wood preservation.

• Many electronic products also have varying amounts of silver as well.

Demand for Gold:

The industrial uses of gold are narrow as compared to gold.

• The demand for gold as a Jewelry is over two-thirds of annual gold demand in developing countries like India.

• 12% demand is for dental and medical applications.

• Among investors buying gold bars as an asset is also very common.

The Gold-Silver Ratio:

During the past years, investors have used different methods just to track the historical price trends.

In the previous 100 years the ratio of gold to silver has been as sky-scraping as 96. At this time gold-silver ratio is around about 51.

Buying silver Bars and Coins:

Conventionally to own a precious metal like gold or silver you had to buy it physically. It means that you had to have a genuine piece of metal. Usually Silver pieces of 100 troy ounces weigh approximately 6.8 pounds and these are available to retail purchasers. The flat shape of silver bars makes them suitable for storage in a safe deposit box.

Canadian Silver Maple Leaf plus American Silver Eagle are the two most popular silver coins and are made up of junk silver.

Exchange Traded Funds:

If the investors have brokerage accounts in which they trade stocks then they can trade an ETF for silver. These comprise ishares Silver Trust and EFTs Silver Trust. If you are going to buy and sell these products then you are allowed to play a part in the price movement of silver without actually acquiring a piece of metal which is much more expedient for many investors.

Silver vs. GoldMining Companies:

Gold and silver prices are creeping up. It’s not easy to buy them but you can purchase shares of the companies that mine for silver. In this way you can get exposure to the silver market along with other base metals.

Both silver and gold are very useful and the importance of these metals is increasing with each passing year. Buying gold bars or silver bars can be valuable hedge against economic stability and these can be used to balance your portfolio in terms of dollar risk.

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