{"id":977,"date":"2022-07-01T23:41:25","date_gmt":"2022-07-01T23:41:25","guid":{"rendered":"https:\/\/dunnedinventures.com\/gold-investing\/clone-of-9-devastating-gold-ira-scams-avoid-these\/"},"modified":"2022-07-02T01:18:23","modified_gmt":"2022-07-02T01:18:23","slug":"gold-vs-silver-investment","status":"publish","type":"page","link":"https:\/\/dunnedinventures.com\/gold-investing\/gold-vs-silver-investment\/","title":{"rendered":"Gold vs. Silver Investment: Which Is Better?"},"content":{"rendered":"

Dunned Inventures is reader supported. When you invest through our links, we may earn a small commission at no extra cost to you<\/span><\/p>\n

You’ve decided that you’re interested in investing in gold<\/a>, silver, or both. But now you’re wondering which precious metal is the better choice, how much gold and silver cost, and if there is any difference between the two.<\/p>\n

Even though they are both precious metals that are often regarded as some of the most expensive resources, there is a considerable difference in their prices, history, and relationships to the economy.<\/p>\n

Gold is significantly more expensive than silver but stands strong against recessions, inflation, and uncertain times. On the other hand, silver has a more accessible price point but has higher volatility and fluctuates up and down in correlation with the economy.<\/strong> <\/p>\n

Are you curious why that is, and which is the better option for you? Read on, we have it all covered in one handy guide.<\/p>\n

Gold vs. Silver Investments: Key Differences<\/h2>\n

Price<\/h3>\n

Gold and silver, both precious metals, are often seen as similar investment forms, but their price points have a more considerable difference than most investors expect.<\/p>\n

For example, gold is typically between $1-3,000 per ounce, whereas silver is between $10-30 per ounce.<\/p>\n

Even though silver and gold follow similar patterns throughout history, they keep a relatively consistent rate gap. Both tend to increase in value, slowly and steadily.<\/p>\n

The Gold to Silver Ratio<\/h3>\n

The gold-to-silver ratio represents the number of silver ounces needed to equate a single ounce of gold. Right now, the ratio is 85.79 because you would need 85.79 ounces of silver to equal the value of one ounce of gold.<\/p>\n

Paying attention to this ratio can benefit investors because it makes it easy to see when one metal is overvalued or undervalued and can allow investors to estimate when and where the ratio will narrow or widen. Being able to anticipate these changes means it’s easier to make a profit, even when the prices of the metals fall or rise.<\/p>\n

Now, we allow the ratio to swing freely due to the economy.<\/strong><\/span> In older times, though, governments set or fixed the ratio. In 1972, the US fixed the ratio to 15:1, meaning it took 15 bars of silver to make up one bar of gold. They later moved it to 16:1 in 1834. In 1862, it was set back to 15:1.<\/span><\/p>\n

Not much silver was mined in the 1860s and early 1870s, so it became more scarce. The US government did not adjust the ratio, so miners quit selling it to the US government and sold it to private buyers and jewelers. In response to this, in 1873, the Grant administration demonetized silver, and the ratio was allowed to freely fluctuate based on the supply and demand.<\/p>\n

The highest ratio the US has ever seen was in 2020, when it peaked at 114.77.<\/p>\n

Historical Prices of Silver and Gold<\/h3>\n

Generally speaking, gold does better in recessions and crashes than silver (usually surging in price during uncertain times), while silver tends to suffer significant drops during economic crashes.<\/p>\n

Let’s dig into the nitty-gritty details now:<\/p>\n