While no major economy uses gold or silver as the basis for their currency anymore, investors still regard these two metals as active stores of value. Silver is more volatile, cheaper and more closely linked to the industrial economy. Gold is more expensive and is a better way to diversify your overall portfolio. Both silver and gold can function as safe investments, but gold tends to have a better track record over long periods of time.
In shorter periods of time, however, the specific dynamics of the individual markets are more important for their respective returns. Regardless of which one you buy, remember that none of the assets generate cash flow. Therefore, over the long term, investors may be best advised to take a buy-and-hold approach with a portfolio of profitable and growing stocks. Which investment coins are better suited as an investment? You can invest in precious metals by buying physical metals such as bullion and investment coins, or through financial products such as exchange-traded gold funds (ETFs).
While both gold and silver have attractive properties, gold is the better investment for the average precious metal investor.
