Gold vs. Silver

Gold and silver are frequently lumped together, and with good reason. Though they are quite different from each other in terms of availability and pricing, the simple fact is that they are both precious metals. As a new buyer, you will likely wonder which one is best for your purposes. This article aims to outline the subtle and not so subtle differences that come along with investing in one metal vs. another. The one thing to remember with any sort of investing, though, is that diversity is almost always going to benefit you in the end. It typically makes little sense to put all of your eggs in one basket, regardless of how confident you are in your future prosperity.

Pricing

The most obvious difference, aside from their natural coloring, between gold and silver is their pricing. Gold is typically valued around 40-50x higher than silver, though this exact valuation will naturally sway with time and market fluctuations. One reason why many people flock to silver over gold is because of their ability to own a lot "more" for a lot less money. In the end, though, everything is going to balance out.

Gold is a great place to be if you are looking to spend substantial amounts of money and/or if you are a more experienced investor. For someone who is new to the world of precious metals, silver serves as a great starting point. With that said, there are still plenty of ways to get into gold on a budget. Yes, it does cos a lot more than silver, but buying in small quantities is an effective way to remedy this dilemma. You don't need to buy 10 oz. of gold at a time, and one gram bars are very easy to locate. Gold might seem out of the financial equation at first glance, but if you are looking into buying silver instead, the chances are that you can afford gold just as easily, albeit in smaller doses.

Usages

Gold and silver do share some of the same common, everyday purposes. Both of these metals are regularly used in jewelry, and it is what they are best known for. For thousands of years, the wealthy have adorned colorful pieces of jewelry carved out of pure gold and silver. While this certainly holds true today, the metals have also taken on many new uses that the average person is unlikely to consider.

Did you know that silver is widely used in technological parts, such as those used in cars and computers? Gold, too, is used in some components in a variety of industries. Though these two uses are undying, they will always pale in comparison to the need for gold in jewelry. While silver has a primary usage in industry, gold will always be an element in jewelry before anything else.

Weights

Gold and silver are very different from each other when you consider the most traditional sizes in which they are minted. It is rare that you will run across a piece of silver that weighs less than 1 oz., where in gold this is very much the norm. This is again derived from the fact that gold is much more expensive than silver when compared on an equal basis. Gold coins are almost always available in sizes that range from 1/20th of an ounce to 1 oz., with intervals of 1/10th, 1/4 and 1/2 ounce along the way.

For the average gold buyer, fractional ounce coins are the way to go. There are very few people who can realistically add one ounce coin after one ounce coin to their collection. If you are just starting out in gold, don't be worried that you are starting off too small if you buy fractional ounce items. Not only is it completely normal, but it will also make it much easier to part with your items should you choose to sell them somewhere down the line.

Market Fluctuations

For years, gold and silver have remained somewhat inline with one another when comparing the everyday ups and downs in value. What is interesting, however, is that gold has found itself as rather steady through ups and downs, whereas silver has become notorious for its violent swings. Massive single day gains (and losses) have done a lot to scare off a large pool of commodities investors. There are not that many people who have a tolerance for 5% shifts on a daily basis, let alone the ability to swallow a 20% loss over just a handful of days.

If you are not a big fan of absorbing tremendous amounts of variance at seemingly unpredictable times, gold is a great investment option for you. While silver has plenty of upside, it will put your money at more risk than you would likely be comfortable with. Gold is much more of a protectionary vehicle against your money because it is not quite as prone to huge losses. You will always need to ride the ups and downs when it comes to investing, but you will appreciate a smoother ride with gold.