Comparing Gold and Silver
Precious metal diversification is widely believed to be essential for the life of a prosperous precious metal investment. Growing numbers of no-longer novice investors are exploring their own diversification options, and many are comparing gold and silver to determine which specific type of gold/silver investment would best accommodate their own, individual financial needs. Gold traditionally takes the lead in most precious metal investments, with silver investments acting as a hedge against negative factors that could affect gold prices. For example, a typical investment for long-term financial security could include a gold investment in rare coin, like $20 Lady Liberty or Saint Gaudens coins, with a diversification in Morgan Silver Dollars or Peace Dollars. Conversely, a short-term profit venture could typically include gold bullion coins, like 22 Karat Gold Eagles, or proofs, with one-ounce silver bars from Johnson Matthey or Credit Suisse, for diversification.
Silver is historically the ideal diversification metal for gold, as silver prices act independently to dollar values, unlike gold, which historically shares an inverse correlation with dollar values. Aside from their differing physical appearances, silver’s independence to dollar values is the primary distinction that investors discover, when comparing gold and silver. The main reason why silver prices aren’t directly tied to dollar values is because it plays a wider, more pragmatic role than simply a precious metal used for investment, currency, or jewelry. Silver has industrial and technological uses that lend it added value. It is used in making photographic and motion picture film, as well as exhaust systems for the automotive industry and military. Silver is used in electronic circuitry, and our military incorporates silver’s odor absorption properties to manufacture undergarments for our brave, fighting men and women.
Shawn Cunningham
