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Investing in Precious Metals: Gold vs. Silver


Starting something new is never easy. Especially when you are launching a ‘beginning’ that will define your monetary savings for the ‘end’ (a.k.a. retirement). That’s why the investments you make today must be the best ones for you not only today but well into your future. 

If you like gold more than silver, should you put all your money in gold? That’s a great question since many Canadians say “Yes!” Others consider silver the best because its price per ounce is lower. But before we decide which is better, let’s take a look at the benefits of investing in each. 

Why Should Canadians Invest in Gold?

It’s the precious metal that everyone in the world knows and loves. Its yellow glow is hypnotic to those who adore gold jewellery, it has practical applications in manufacturing and it is a great investment opportunity since it is in high demand. 

These reasons increase gold’s demand, plus there is just a lot less gold in the world than silver, so its consumption just leads to further demand. Gold mining can only produce so much. For example, a year of gold production worldwide recently led to 2,500 tonnes of the lustrous precious metal, while silver has more than seven times as much: 27,000 tonnes.

Historically, gold’s price has not been nearly as volatile as silver’s, which tends to react more erratically when it comes to disruptions in the economy and its production capacities. (Review the 30-year charts here). 

Gold is often used as a hedge against inflation and stock markets, providing better returns when other investment options based on economic growth falter.  

Lastly, consider the physical characteristics of gold. Since the value of gold can be easier to hide in small spaces, large quantities of gold stored at your home will not be seen unless you want to showcase your investments to trustworthy guests. Pure gold also will not tarnish, so decades from now, your investment will look the same as it did the day you bought it. 

Why Should Canadians Invest in Silver?

Silver is a highly sought-after beautiful, shiny grey precious metal with a wide range of uses. A huge part of silver’s demand is driven by industrial applications, tied to economic growth. When the economy is booming, often the price of silver is too. 

Although the demand for silver is much higher than gold, so is the mining capacity. Thus, silver is much more affordable than gold. (Look at today’s silver charts.) That means that there is a lower upfront cost to buy into silver. You can buy a one-ounce silver coin at a price that’s significantly cheaper than the same weight in gold

Since silver is less expensive than gold on a per-troy-ounce basis, you can make more frequent investments and share the benefits of silver investing via gifts to friends and family. 

The popularity of silver coins and bars has led to endless design options from hundreds of mints worldwide. From coins that commemorate movies like Black Panther to honouring a Korean God of War, there is a silver design for everyone. These designs not only make investing in precious metals more fun than ever before, but they may contribute to a larger price when you sell.

Silver coins and bars come in many different sizes and will be practical for trading if the entire world’s economic and political systems collapse and we need to ‘reset’ things.

So, Which Should I Invest In? Gold or Silver?

Fortunately, no matter which you choose to invest in, gold and silver are precious metals and, therefore, highly pure and will always be valued. They can be stored in the comfort of your home, away from the prying eyes of government officials. 

With silver’s affordability and gold’s long-term strength against economic uncertainty, together, they provide a powerhouse of investment opportunities that Canadians value. But in the end, there can be only one. Or could there?

Perhaps investing in gold AND silver to diversify your precious metal portfolio is an option. See your options available online and speak with your financial advisor today about discounts on large orders.