Gold or silver: which is best for you?

Currently, we are in the midst of a strong upward trend in the gold and silver industries. Deciding between investing in gold or silver can be difficult because it is largely a personal choice. With the world economy facing such uncertainty, there has never been a better time to carefully protect its assets by investing in gold or silver. However, there are a number of differences between the two in terms of market fluctuation and availability.

Market Size

The market of silver is less than the gold market. The amount of gold bullion available for investment is estimated to be twice that of silver.

Oscillation

Because the silver market is smaller compared with the gold, and he has large oscillations. So it is common to see the value of high silver and sudden drops. Obviously, this can make an investment silver possibly riskier than gold.

However, in certain periods becomes more rewarding, since the price of silver may also grow faster than gold. The year 2010 is a good example of a time when the price of silver - at least in the first half of the year - has increased much more than the price of gold.

Availability

There is much more silver deposits on earth than gold. Some believe that the availability of gold will decline in coming years, since most of the major gold deposits have already been extracted.

The fact that there is greater availability of silver may suggest that the price it does not get as expensive as gold. However, the use of silver is intended largely to industry, thus making this metal, a product much desired by all.

Then, gold or silver? It is essential to consider the following points:

     The main use of silver is for commercial purposes. Approximately 65% of silver is used for industrial sector and the rest of jewelry, coins and medals;
     After oil, silver is the most useful product in the world! In addition to the monetary value, silver is a reflective metal no known substitutes on the planet;
     The main use of gold is in jewelery making. About 55% of the intended use of gold is in jewelery making India being the largest user of the metal (though China is about to overtake India in this regard);
     During the last 30 years the world has spent more than silver extracted, therefore the stocks of this metal are hitting record low;
     Gold has tradition to prove its stability in the market. More than 5000 years gold was already used as a form of money in Egyptian culture; Since then, people have used the gold in several ways, both in the monetary system as a luxury product;
     About 33% of gold is used for investment purposes;
     Currently, there is only the equivalent of 1/14 ounce for every person in the world to invest in silver;
     In times of crisis, gold is the safest and most potential investment to increase their wealth;
     Bars and gold coins are easy to negotiate.

Also consider that historically an ounce of gold has always been about 15-20 times more expensive than an ounce of silver. Today, this relationship between the two metals is 50 times more for the gold. This indicates that either the silver is very undervalued, or gold is ultravalorizado.

All this means that only you can choose the most suitable metal for your situation and purpose. Investing in silver, for example, can mean greater return on investment in the short term. While investing in gold can mean more stability and less risk but also lower investment in the short term.

The gold bars are an excellent starting point for your investment.