Tuesday, 1 December 2015

Silver or Gold Investments - An Often Asked Investor Question

All new and old investors are faced with a constant question about what to invest in. The answer to this is investment always has to be individual choice based on his circumstance. However, what is important is to understand the difference between the two precious metals gold and silver and the forms they are sold in. It is advised that an investor do some research before investing in either of them.

Coins & Bars

Most investors think of gold bullion as the rectangular bar of precious metal instead of coins. There is also a misconception that the rectangular bar is the more economical purchase between bars and coins, the latter being priced higher and of limited supply. 

To remove this fallacy we would like the investor to be informed that bullion can come in the shape of bars and coins, each providing a different variety of benefits.


Large scale precious metal buyers consider bar purchases, the reason being -larger quantity provides value for money. However, there is a catch to this too. Bars of large sizes are not easy to purchase. An investor would find it difficult to sell 200 grams from a 1 kg bar; however, if he was in possession of two bars 100 grams each, he would be able to rapidly trade them off.

gold coins


Large bars are an efficient way of buying gold coins and bars as precious metal, though coins prove to be a better investment. They go for higher premiums.

Gold or Silver- The Commonly Asked Investor Analysis

New investors are often found pondering over which of the two to choose. As said earlier it has to be an individual choice. However, owning both helps an investor diversify and decrease the risk within his own investment portfolio.

Gold investments sit investors seeking personal wealth protection and reducing risks prevailing in other metal investments. 


Silver being volatile, its prices are influenced by commercial and supply demands. Therefore, this metal is exposed to fluctuating prices. Some gold investors are found exchanging their gold for silver. They do this to benefit from steep price rises in the metal.

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