Why Gold as an investment better than Silver
In the world, gold and silver were discovered thousands and thousands of years ago. The yellow metal is the most desired asset since ancient times. Gold as an investment has always been considered more precious and valuable than paper currency, silver coin or other assets. Sher Shah Suri the Mughal Empire first introduced the gold coins and silver coins between 1545 and 1545 to use it as that period currency. Gold and silver have a long history, now it has become part of human culture.
Is gold a good investment?
The USA has most gold reserves in the world. It has around 8, 133, 5 tons of gold bullion. Then come Germany, The International Monitory Fund (IMF), Italy, France, Russia, China and other countries. The world largest silver reserves are held by Peru with 110,000 metric tons and then Poland and Australia come on second and third positions with most silver reserves.
People purchase gold & silver and sell it in the market during high rate days to gain profit. From the past many centuries gold has always been a precious asset for the transaction, investment, profit and savings. Now the question arises, why mostly gold is considered as a far better investment than silver?
Price of Gold – Investing in gold is good or bad?
In a global market, the price of gold is far ahead and doubles than silver. There are many cons of silver investment discussed on this URL. Silver has a low rate, it has an intrinsic value that is 75-80 times cheaper than gold. There is less profit in silver due to the less market growth rate.
In the business world, investors earn huge money by investing in gold. There are many reasons due to which societies and countries love owing gold. If you have an investment plan than undoubtedly gold is a better investment option than silver. Here are the reasons:
Strengthen World’s Economy – Gold as an Investment
The most trusted commodity between countries for trade & exchange is gold. It perform key role in fiscal policy. Gold is always looking good hedge when other investment plans seem risky. The price of gold also depicts how healthy the economy is. Many banks give customers a loan against the gold to generate finances.
A country has a strong economy that exports gold and access to gold reserves. In a tough time when other currencies don’t work gold is the best option. During uncertainty gold provide financial support to the economy and society.
Greater Worth and Market Demand
Being more profitable, higher market rate and fashion trendy specialties gold always have greater worth and demand. There is no doubt gold is more valuable than silver. The current market rate of gold in the US market is $1702.75 per ounce and the current silver rate is only $15.27 per ounce. Gold investment always stays in demand but the silver investment only depends on its current market value.
There is a big trend in jewelry all around the world. Most people like to wear unique gold and silver jewelries designs in the daily routine and events. Especially in the wedding season in Asian countries, people prefer wearing gold jewelry more than silver as it is a more precious and expensive metal. This increases its 50% of demand and another demand is based on physical investment in the central bank.
Secure Long Term Investment
Gold as an investment always remains the investor’s favorite choice. The prices of gold increase every then and now. There is a more future gain in gold investment rather than silver. Silver metal is not a fruitful asset. Investment in silver could be risky. People feel more secure in gold investment. For best for long term planning people save and invest in the form of gold bricks and gold coins.
Works against Inflation
Gold mostly acts as a hedge against inflation. Gold often show higher trends when economic conditions are low, it is observed as effective too for portfolio diversification. Many people buy it to bring a decline in the US dollar currency.
Gold Trading Future
The gold market is a big global market. Buying and selling gold happen in the international market regularly. There is a successful future of online gold trading. There is a strong relationship between gold prices and stock market trends. Investors always keep eyes on international gold prices for better investment move.
In a net shell, gold as an investment provides greater returns in comparison with other financial assets. Gold as an investment creates a sense of safety among stakeholders. It is highly recommended that gold as an investment is much better than silver.