Tags: Money | gold | silver | investment

Is Gold Better Than Silver as an Investment?

By    |   Monday, 15 June 2015 04:49 PM

Gold has long been a valuable investment. When the economy looks gloomy over the horizon, gold often rises in value. Many investors buy gold for protection against a sudden jump in inflation. Silver also provides investors with security.

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Silver’s value can increase with production booms in various industries. The global economy offers some incentives to buy silver. The precious metal is used as a material in automotive, electronic and solar production. As the global economy widens, investors can take advantage of silver’s use in these industries.

When the economy seems to stabilize, gold may lose some of its value. Silver is among those precious metals that can retain or increase in value when demand is driven from various industries that use it for production, according to Investopedia. Silver is usually cheaper than gold, so it may provide better profits through rising industrial demands.

Timing also plays a major role when choosing between gold and silver as an investment, according to the Arora Report. Gold gained more than 10 percent of its value between 2006 and 2008 while silver lost more than 20 percent. However, silver was a better investment between 2008 and 2011 when it outperformed gold. Afterward, gold became the better of the two during times when all precious metals dropped in value. Gold suffered less of a loss than did silver.

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Gold becomes more valuable during troubled economic times because of its security with the decrease in value of currencies. Investing in silver for its production value in auto or electronic industries depends on how fast these areas grow. It might not bring high rewards if industrial growth throughout the world is slow.

There are also short-term and long-term investment strategies to consider. Gold and silver prices could indicate a negative during short-term investing, but both usually provide a good investment for a long-term investment.

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Gold has long been a valuable investment. When the economy looks gloomy over the horizon, gold often rises in value. Many investors buy gold for protection against a sudden jump in inflation. Silver also provides investors with security.
gold, silver, investment
361
2015-49-15
Monday, 15 June 2015 04:49 PM
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