Comparing Gold and Silver For Investment

So far, people are more familiar with gold as a precious metal that can be used as an investment instrument. In fact, in addition to gold, there are other precious metals that also offer the advantage of silver. Just like gold, silver is also known as a hedging tool that is resistant to inflation. Both of these precious metals can also be purchased in the form of bars of coins and jewelry. Well, for you who are considering to buy gold or silver as an investment instrument. For that, you can visit SMH AG Industriemetalle.

Here is a comparison of profit-and-loss investing gold vs. silver:

1. Excess gold

One of the advantages of gold is the lower volatility level. That is, the price of gold is relatively more stable when compared to the price of silver. As quoted from Kitco, in the period 2006-2008, in which the price of gold is shining, gold investment gains can reach 10 percent compared to silver investors are actually lost 20 percent. Although in 2008-2011 silver investment gain was higher than gold, silver price volatility was higher by 70 percent compared to gold. Besides being more stable, gold is also relatively more liquid than silver. That is if, at any time investors want to cash gold, many markets are willing to accommodate it. Starting from family, neighbors, pawnshops or jewelry stores in the market even receive your gold.

2. Gold deficiency

Gold price growth is often lost compared to other investment instruments including silver. This is seen in the comparison of price growth that has been discussed previously. In addition, the purchase of gold also requires investors to issue additional funds ie manufacturing costs.

3. Excess silver

Silver price growth is higher than gold. This is evident if you look at the statistics between 2009 and 2013. At the time of the gold sold by value USD1.592,91 per troy ounce in 2013, meaning that gold has grown up to 80.43 percent. While between mid-2009-2013 where the silver price touched the level of USD29, 09 in 2013, the price growth has reached 155.2 percent.

4. Lack of silver

The benefits of silver investing are high. However, the risk is also no less great. If more gold demand for jewelry, the biggest silver demand comes from industries such as batteries, photographic equipment, LEDs, medical supplies. This condition makes silver more sensitive to the economic crisis. Because, when the crisis occurs and companies experience a decrease in demand, practical demand for silver was slowing.