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Silver Vs Gold Investing – Pros and Cons of Each

Whenever medals-of-honor are issued, be it in sports, entertainment or other endeavors, you would hardly miss gold and silver. The following are pros and cons of each depending on established criteria.

Availability

Availability of a commodity is very important when it comes to determining how it is traded in the market. Generally, Silver is less rare than Gold and hence widely available. Being widely available means that you can easily invest in silver at short notice and which is a very conducive condition for short-term investment. Due to its affordability, you can also easily dispose of silver within a short-term notice.

Affordability

Affordability refers to the ease with which various players in the market can purchase a given commodity. Silver is much more affordable compared to Gold. This gives silver an upper hand when it comes to short-term trading where you just want to hold your cash in some investment form while you shop for much longer investment or await a future consumption.

Applicability

Silver has relatively wider applications as compared to Gold. Silver is used widely in both industrial and domestic applications. Furthermore, silver is also used for ornamental value just as Gold. This high level of applicability means that its demand is relatively higher than that of Gold. Consequently, if you have silver and gold, you are likely to easily dispose of silver than gold. Therefore, silver is a better investment if you want to invest in short-term and would wish to dispose of your investments within a short call. Check out this article for the best place to buy silver.

Fluidity

Due to its availability, affordability and applicability, Silver is more fluid than Gold. Fluidity refers to the ease with which an investment can be converted into cash. Therefore, you can easily convert your investment in silver into cash as opposed to Gold. This makes silver a good option for short-term investment.

Stability

The universal recognition of Gold not only as a measure but also as a store of value makes it a more stable investment as compared to silver. This stability helps to cushion your investments against volatility in a given market which is easily offset by stability in another market across the globe. Generally, in the long-run, the price of gold is relatively more stable as compared to the price of silver. This makes gold the most viable option when it comes to long-term investments.

Profitability

Over a long period of time gold price fluctuates less often as compared to silver. Thus, its price is more static as compared to silver. However, when it comes to short term investments, silver moves fast, and its price fluctuates more often than gold. Therefore, in the short term, you are likely going to fetch a higher profit by investing in silver as opposed to investing in Gold. However, this can only happen if you are alert enough to buy and sell your investment in silver at appropriate moment and being able to increase your frequency in the buy-sell transactions.

The game of gold versus silver is not a straight score. It largely depends on the kind of investor you are – whether you are a short-term investor or a long-term investor. Investing in silver might be a good move for short term investors (however there are certain conditions here too), while Gold investing can be better for long-term investors.

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