Investing in Silver – Why Silver Is Better to Invest in Than Gold

6When people are considering whether to invest in precious metals or not, one of the first things that come to mind is whether they should invest in gold. Many give little thought to investing in silver. One of the main reasons for this is that the TV and Radio News regularly reports the price rises and falls in gold bullion, but very rarely does silver get a mention. In this article I want to cover a little bit about whether silver is a better investment than gold.

Let’s be honest, at this time of recession, few of us have huge amounts of money to throw around. It is sad but true. One of the main reasons as to why people look into investing in silver is because it is considerably cheaper than gold. In fact, it is up to 45 times cheaper at times. Now of course, this means that you are going to get less of a ‘physical return’ on your money since you will be spending less, but it is still a great way to break into investments and hopefully make a profit – especially in the long-term. At the moment, many experts actually believe that silver is undervalued, (traditionally it is around 15 times cheaper than gold) and thus for this reason alone, its investment potential is attractive. After all, one could reasonably conclude that if the relationship between gold and silver renews to historic standards, the price of silver will simply rocket.

In the silver market (and the gold bullion market for that matter) there is something known as ‘paper futures’. These are purchased by investors predicting future price rises and falls. On times this has a significant tendency to suppress the price. There are many silver futures currently in operation! The benefit to those that invest in silver is that if the price begins to rise, silver future owners are going to need to buy silver to correct their position. If they don’t they may face financial ruin. Any default on these papers will also show there is a silver shortage and will undoubtedly undermine the market.

The result of this is that those investors who are holding physical silver, will see a considerable demand for their holdings enabling them to easily sell their investments in a rising price market.The same can’t be said for the gold market where there are fewer futures – although, even here there is an impact – but proportionately less great.

The demand for silver as jewellery and for Industry is also considerable. There is actually more demand than the supply chain can deal with. For example, silver is used for:

  • Silver contacts in switches and circuit breakers for the power industry
  • Silver contacts in membrane switch panels for machinery, chemical industry processes, railway traffic controls and elevator buttons
  • Silver batteries
  • Radiography – photo film
  • Cell phones
  • PC’s and Laptops.
  • Medical applications


This has been the case for a considerable time and the outlook is unlikely to differ. Unknown to most people is the fact that there are very few silver mines in the world. The ones that mine silver do so as a side effect because those mines were built to extract other metals. Silver is a sort of bonus for them. Therefore there is no real way that huge amounts can enter the supply chain and especially not ‘on call’. As a result silver is going to be more in demand as it is consumed and thus the price is likely to rise even further.

Finally, some of the top investors in the world have been ‘betting’ on the price of silver. In fact, Warren Buffett has 2% of his portfolio wrapped up in the precious metal and many serious international Investors and Billionaires have followed suit. This in itself should reveal something.

So is Silver a better investment than Gold? Of course it is – currently – yet gold is still the investor’s choice long-term. When it comes to silver many serious investors believe the only way that the price can go, is up. For this reason, one should consider silver as an important part of one’s medium to long-term savings plans. This also includes possibly creating a Silver IRA or purchasing silver for a Precious Metal IRA for one’s Retirement Plan.

For access to the latest information on investing in Silver and Gold and IRA investments go to the following sites:

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