Gold or Silver?

Gold or Silver

 

 

 

         

 

 

 

 

 

When considering whether to buy gold or silver as precious metals, clients often seek advice. While those with a limited budget may need to decide between the two, savvy investors typically opt to own both.

Gold serves as the ultimate insurance and protection during uncertain economic times, offering security and stability. On the other hand, silver is often viewed as a more speculative option. Although both metals are safe-haven assets, silver presents unique opportunities for realizing substantial profits. Therefore, owning both gold and silver can be advantageous.

It's important to note that silver does not provide the same level of security as gold due to its price volatility. However, silver remains a physical asset with inherent value and cannot be devalued by inflation, similar to gold.

One significant distinction between silver and gold is the industrial demand for silver. Silver is widely used in electronics and various manufacturing sectors. Consequently, higher production output translates to increased demand for silver. The price fluctuations of silver create more opportunities for buying and selling, making it a more speculative investment. The price of silver can experience significant and rapid movements, necessitating careful monitoring of the global financial sector but also offering potential buying and selling opportunities.

Historically, silver has proven to be a lucrative investment. For example, between December 2008 and December 2011, the silver price increased by over 230%, outperforming other popular investment types such as stocks, property, and even gold. In 2019, silver achieved a peak gain of almost 30% and outperformed gold in Ringgit terms, further highlighting its appeal as a speculative investment.

As of 2022, silver has seen a more than 50% increase over the past three years. Despite reduced industrial demand during the pandemic, silver has demonstrated resilience. Many investors are hopeful that silver will reach record highs, as gold did in 2023.