Silver is more volatile, cheaper and more closely linked to the industrial economy.
Goldis more expensive and better for diversifying your overall portfolio. One or both of them can take a place in your wallet. Arguably, the best use of gold as an investment is to mitigate portfolio risk.
Both silver and gold can function as safe-haven assets, but gold tends to have a better track record for long periods of time. That said, in shorter periods, the specific dynamics of each market end up being more important for their respective returns. Regardless of which one you buy, remember that neither asset produces cash flow, so it's best for long-term investors to take a buy-and-hold approach with a portfolio of profitable and growing stocks. Silver is much cheaper than gold, making it more accessible to small retail investors.
For those just starting to build their portfolios, the cost of silver can make it a better investment option. Gold is more expensive to buy than silver, so it gives you less flexibility when it comes to selling, although smaller gold coins are relatively affordable. Not only is gold worth significantly more per ounce than silver, but it is also the denser of the two metals, making a specific volume of gold worth much more than an equal volume of silver. Both gold and silver are extremely liquid assets, seen by all as a valuable commodity, and even by many as a real currency.
But in the long run, the answer to the question “Is it better to go with gold or silver? could be “actions”. Of course, this doesn't take into account an investor's personal preferences or feelings about the future prospects for both gold and silver. If you want to get involved in buying gold, you need to have a significant amount of money to make your initial investment. The idea is that both gold and silver can be good portfolio diversifiers, especially when viewed as natural complements to each other, which basically means that gold's resistance can help balance silver's increased volatility.
The relatively high price of gold per ounce makes it easier for investors to store value compared to silver, making it cheaper to store an equivalent amount of dollar value. That's why, if you want to be less exposed to economic recessions, gold might be a better investment option. While silver and gold have similar boom-and-fall cycles, there are a few key differences you should consider when choosing between buying gold and, unless specifically insured through a private insurer, most standard homeowners or renters insurance policies don't cover gold and bullion theft or silver coins. The correlation between silver and inflation is also high, Agrawal says, but not as strong as that of gold.
Sure, you can buy gold by the gram, or even by pennyweight, but buying smaller quantities increases your total cost, making these investments less advantageous. Gold coins offer an even greater option, with several denominations minted in numerous countries, over many centuries. So, if you haven't yet added some physical gold or silver to your investment portfolio, this might be the right time to do so. As a result, silver is more sensitive to economic changes than gold, which has limited uses beyond jewelry and investment purposes.