Gold Or Silver: What To Invest In?

 

Whenever the stock market becomes too volatile, investors typically shift to the comparatively less volatile asset classes, precious metals being among the most common ones.  A lot of people choose silver or gold for investment as a good alternative to other popular investment classes. Unlike equities, ETFs, fixed deposits, or mutual funds, returns on precious metals are less impacted by investors’ sentiment.  They additionally are more liquid than the majority of the other investment tools as well.  They can also be a good portfolio diversifier and offer a hedge against market risk.

Both gold and silver have features that make them an attractive investment vehicle. For an average precious metal investor, buying Indian gold coins over silver shall be a better option. This is due to the fact that gold has a much larger liquid market that is driven mostly by investment and jewelry demand. Moreover, the price of gold is less volatile than silver. On the other hand, silver does have a stronger relationship to economic activities and is more speculative. This is due to the fact that silver has multiple industrial uses, and can especially be an attractive choice during down cycles when the price of the metal is cheap. The key advantage of silver over gold is its price. While gold is extremely advantageous to invest in. it also is extremely pricey, and not all investors can afford it. Hence, for small investors with a more stringent budget, it shall be smarter to invest in silver bullion in Sydney.