Investing in gold and silver, which one do you choose?

Comparison of precious metals investing between gold or silver. Which one should be chosen when investing: gold or silver? Many consider gold investing to be the most profitable. What is so right? Let's look at the following gold and silver investment comparisons:

Why do many choose gold than silver?

Gold or precious metals become one of the most popular investments alternatives, because gold has some common advantages, such as:

1. Gold is usually liquid which means gold is very easily to disburse or cash, even exceeding property, stocks, mutual funds, and other paper-based investments.
2. Not easily eroded inflation, so the value will remain high.
3. Gold, or precious metals price tend to be stable even up, usually the hike ranges from 15% to 20% annually.
4. Gold is not easily damaged and easily stored, suppose in the case of floods or fires, gold is safer than cash.

In the long run gold is rated safer because it is like a property, gold is also increasingly scarce.

This scarcity will cause the price of gold to continue rising. According to the logic where with the fixed demand and the supply is decreasing, the price of an object will be increased.

Because of these advantages, most people still believe that the only precious metal that can be used as an investment option is gold.

In fact, there are still many other precious metals, for example, silver. Silver is not as popular as gold, but is indispensable in the industry, much more than gold.

Thus, this one metal is also worth considering as an investment instrument.

Well, interested to see the difference both? Zuwaj will discuss the following:

Overview of Gold

Gold is a chemical element in the periodic table that has the symbol Au (Latin: 'Aurum') and is a transition metal with some following physical properties:

• Mushy
• Shiny
• Yellow
• Malleable, and
• Ductile

Since ancient times gold has been used as a sign of wealth, evident from the multitude of jewellery, or accessories of kings and leaders made of gold.

Today, gold continues to retain its reputation as a starting metal commonly used as a financial standard in many countries.

Gold uses one of the standards in determining its price other than weight, i.e. rust. Gold in general varies from 1 to 24 carats, depending on the purity of the melted gold.

In the world's prevailing general standards, the gold purity levels commonly encountered are as follows:

• 24-carat Gold: pure gold (99.99%)
• 22 carat Gold: 91.7% gold composition, mixed with other ingredients 8.3% (usually silver)
• 20 carat gold: 83.3% gold composition
• 18 ct gold: Composition 75% Gold
• 16 carat gold: 66.6% gold composition
• 14 carat gold: 58.5% gold composition
• 9 carat gold: 37.5% gold composition

If you are also the one who loves investing gold, you always check the price of gold every day.

A glimpse of silver

Whereas silver is a metal element with atomic number 47. The symbol is Ag, from the Latin argentum.

Silver has several physical characteristics, such as the following:

• Soft
• White
• Sparkling
• Has electrical conductivity, thermal conductivity, and
• Have the highest reflectivity among all metals

Most silver is manufactured as a side product of copper, gold, tin and zinc mining. The number is much more abundant than gold, so, it is often used for industrial needs.

Its purity is usually measured per-mile-based; 94% pure alloy is described as “0.940 fine.”

Silver is another precious metal that is also commonly used as jewellery. But sadly the value isn't as high as gold.

Comparison of gold or silver investment

What the hell is the difference between gold and silver investing? Let's discuss one by one the differences of these two precious metals:

1. Gold and silver benefits

As has been expressed above, gold is commonly used as a financial standard in many countries. In addition, gold is also often melted with other metals because of it's soft to be used as jewellery.

Because of its high value, gold is often made a symbol of wealth and is used by kings or officials. Gold is also judged to symbolize wealth.

While silver, because the amount is quite abundant, does not experience scarcity like gold. As such, instead of being used as jewellery, silver is often utilized for industrial needs.

For example, as the raw material, such as solar panels, water filtration, tableware, and furniture of high value (came the term silverware).

However, they are in fact used in investments, where there are many known gold coins (dinars) or gold bars. In the case of silver, namely in the form of coins (dirhams) and silver bars.

2. Gold and silver prices as well as potential ups and downs

Because of the different levels of its rarity, the price of gold tends to be higher than that of silver. Thus, gold is often used as a financial standard, whereas, silver is only a substitute for gold for those who are unable to buy gold.

In the price changes, they also have different trigger factors.

Gold is sensitive to the global financial policy of the country concerned, whereas silver is sensitive to the ups, and downs of industrial demand that require silver, such as previous reviews (electrical industry, jewellery, and others).

Another external factor of the trigger’s price of silver is the policy of the Association of producers, and consumers of silver in the Futures Market (COMEX) which is usually closely related to the physical gold and silver itself.

3. Gold and Silver have

Gold has a very wide market, and generally its trade is utilized as a means of investing. Therefore, the buying and selling rate per day is very high.

But don't get me wrong, although silver only holds a fraction of the precious metals market, but generally its trade is used for industrial needs.

Thus, the demand for silver also continues to increase, even today is touted to rival the gold market.

4. Gold and silver investment returns

Gold is already a common investment instrument. But generally new benefits can be felt in the long run. Because the price fluctuates but tends to rise, generally gold is one type of investment is quite safe.

Meanwhile, silver can also be used as an investment instrument in the form of bars, although not as much as demand for gold bullion.

Unlike gold, silver is generally faster ups and downs, so, you can earn gains in the shorter term while using the right investment strategy.

Different when investing in online trading. Gold, or silver investors can benefit from rising prices in the market.

But here gold is safer because price volatility in the market tends to stabilize. While silver has higher volatility.

5. Gold and silver investment risk

Each investment certainly has its own risk, and it is one of the main factors in determining the success of the investment.

As you know of course, these two precious metals are physical investments. It means that you invest with full power over the physical (real asset), not just paper form or a letter (financial asset).

For example, if you buy gold, you get independent ownership where the gold bullion belongs to you completely. In other words, you have full power over the gold.

Thus, it is clear that one of the risks of investing in gold or silver is regarding storage.

The physical loss is the same as losing your investment, so be reminded of the need for safe storage if you want to minimize the risk of gold or silver investment.

Whereas if viewed from other factors, then the risk difference of gold and silver investment is from liquidity.

Compared to liquidity, gold is more liquid because most people in Indonesia prefer gold as an investment option.

Gold is very easily thawed or cashed, even exceeding property, stocks, mutual funds, and other paper-based investments.

For example, when you want to melt gold, you just have to go to a gold shop, pawn, or bank and the funds can be liquid right then.

Meanwhile, in online trading, both gold and silver are at risk. However, silver tends to be more volatile than gold. So the risk leads more to the short term.

Conclusion: Invest many kinds, choose according to your preference

If you look at its definition, investment is an expense associated with accumulating a form of assets to buy capital goods and production equipment in hopes of obtaining profits in the future or future.

No mention of what instrument should be used, because it is entirely your decision.

The important thing here is to always choose investments that can maximize the benefits for your needs. The benefits of investing are as follows:

• Become a potential passive income in the long run.
• May prevent scours due to inflation.
• To provide income for financial freedom.
• Can adjust to changing needs.
• Can be done in accordance with the financial situation.

Congratulations on choosing your investment instrument!

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