Better long term investment gold or silver

Views Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers. Owning gold and silver can be a valuable hedge against economic instability and can help to balance your portfolio, especially in terms of dollar risk. It tends to fetch a higher price than gold during routine periods of market and political stability simply because it’s much rarer. But the premium is only one part of the equation. Far less of the metal is actually pulled from the ground annually.

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It used to be that hoarding gold and silver was the purview of the die-hard gold bugs but it seems that today a lot of investors, big and small, prefer putting their money into precious metals, whether in the form of ETFs, such as GLD and SLV , or physical bullion. Obviously, if you bet big on anything when it starts a big move up, you can make a lot of money. Columns 4, 5, and 6 show the annual compounded returns that your investments would have earned through that year. Investing in stocks had been much more profitable in the first 20 years. Furthermore, silver and gold investments would have had a negative or near zero compounded annual return until At this point, the attractiveness of each of the investment vehicles depends on your beliefs of where the prices will go from here. Personally, I believe investing in stocks is a better long-term strategy for the following reasons:.

The Market for Silver and Gold

Obviously, if you bet big on anything when it starts a big move up, you can make a lot of money. Gkld 4, 5, and 6 show the annual bettter returns that your investments would have earned through that year. Investing in stocks had been much more profitable in the first 20 better long term investment gold or silver. Investemnt, silver and gold investments would have had a negative or near zero compounded annual return until At this point, the attractiveness of each of the investment vehicles depends on your beliefs of where the prices will go from.

Personally, I believe investing in stocks is a better long-term strategy for the following reasons:. It would have been worse for gold and silver if I had started withand investmeng better if I only took and later years. And all the years in between were terrible for gold and silver.

I think that it’s a lot more likely iinvestment at this point we are on the back side of the price hump for silver and gold. But stocks are also an inflation hedge, since if inflation were to occur, the companies would be selling their products and investmenf earnings in inflated dollars.

And while the potential inflation seems to be more than priced in into silver and gold, stocks are most likely not priced with expectations of high inflation. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. SP Ret.

Silver Ret. Gold 1, 1, 1, — — — 1, 1, 1,

And that means producers will have to bring more of each metal into the market. Gold, on the other hand, has limited industrial uses. In the last years, the ratio of gold to silver has been as high as Although they may come with a certain degree of security, there is always some risk that comes with investing in precious metals. As stated previously, gold is viewed as a store of value, and rightly so. Never trade over your head, and always trade for the long-term. Like silver, platinum is considered an industrial metal. Trending Articles. You have no claim on the gold within the fund. But the premium is only one part of the equation. And why are they so volatile? The Market for Silver and Gold Silver had an incredible run, just like gold, from to As investing in silver becomes easier, more people may try to take advantage of that play to protect their portfolio. Manage Money Explore. Borrow Money Explore.

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