Is investing in silver as good as in gold?

Silver is more volatile, cheaper and more closely linked to the industrial economy. Gold is more expensive and better for diversifying your overall portfolio. One or both of them may have a place in your wallet. Arguably, the best use of gold as an investment is to mitigate portfolio risk.

Gold and silver are long-term investments. These precious metals can be held in a wallet or in an individual retirement account (IRA) to allow for the preservation of wealth. They have proven to be solid investment options that have provided stability to investors at a time when the stock market underperformed. Silver maintains its value over the long term and does well when interest rates are low and fixed-income investments don't generate much profit.

Regardless of whether you choose to invest in silver, gold, or a combination of both, you'll need to know how to make those investments. Investing in an exchange-traded fund involves risks similar to those of investing in a broad portfolio of equities that are traded on the stock exchange in the corresponding stock market, such as market fluctuations caused by factors such as economic and political developments, changes in interest rates and perceived trends in stock prices. While both silver and gold are assets that are not correlated with other securities, gold has an even lower correlation with the stock market than silver. As mentioned earlier, silver and gold are generally good investments for investors looking for a deposit of relatively liquid value.

For those who are just starting to build their portfolios, the cost of silver may make it a better investment option. The return on investment and the principal value of ETF investments will fluctuate, so an investor's ETF shares, if sold or when sold, may be worth more or less than the original cost. However, silver is an industrial metal and an investment metal, which significantly affects the evolution of its prices and its prospects. The way to buy gold is to find a licensed precious metals dealer and select the gold coins and silver coins or bars that fit your investment needs.

Silver may be a cheaper alternative to gold, but it also involves unique considerations and risks that investors must consider. Carefully consider the investment objectives, risks, charges and expenses of the fund or funds before investing. As a result, silver is more sensitive to economic changes than gold, which has limited uses beyond jewelry and investment purposes. Since silver is less expensive than gold, silver can be considered to be more accessible than the yellow metal.

On the other hand, stocks carry a greater risk of volatility compared to physical ingots or investments in highly diversified ETFs focused on investing in these assets. Over the past 20 years, silver has achieved a return of approximately 365%, but like its precious metals counterpart, silver performed lower than last year, approximately 12% lower.