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Kyle Jernigan - February 17th, 2022
Silver vs Gold Bullion Bars: Which Is Right for You?
Did you know that around 14% of people in America own silver as an investment? Precious metals have always been and still are a very popular investment option, but when it comes to silver vs gold bullion bars, you might be wondering how you should choose.
While gold is often more popular than silver as an investment, is it necessarily the better investment choice? On the other hand, is it worth investing in silver at all since it is always worth less than gold? If you're asking yourself these questions, you've clicked on the right article to find your answers.
Here, you'll discover why physical precious metal investing is a great idea. By the end of this article, you'll also be able to decide which precious metal is the best investment choice for you. To start off, let's take a look at gold bullion bars and why they are often a great investment option.
What Are Gold Bullion Bars
Many people like to invest in gold in different ways. A popular method is investing in gold jewelry. However, if you're really serious about gold investing, gold jewelry might not be the best option for you.
Why might that be, you ask? Because gold jewelry is rarely ever pure gold because pure gold is too soft to wear as jewelry. Instead, jewelry is often 18K gold while the rest of the jewelry is composed of cheaper metals such as nickel. Gold of lower karats will contain progressively less gold, making the jewelry less expensive and not worth your money as an investor.
If you want to start investing in gold the right way, gold bullion bars are the way to go. Gold bullion bars or gold bullion in general, whether in the form of bars or coins, is pure gold. Bullion is at least 99.5% pure gold, but it can be more.
Bullion bars don't have any other use except to hold monetary value. Many large banks and treasuries have gold bullion bars stored away. However, it's not only banks and treasuries that can own gold bars; you can own them as well.
But why should you invest in gold in the first place? What makes it so special?
5 troy ounce Silver Bar commonly found in certain price tiers of our Big Bar Crate which is a monthly subscription crate of Silver Bullion Bars. Photo Credit: Investor Crate Staff Picture.
Why You Should Invest in Gold
Gold has many unique benefits that no other precious metals have. For example, physical gold is a hedge against inflation. So, no matter how out of control the economy gets, the price of gold will always remain stable and reliable due to its inherent value.
Because of this, gold is known as a "safe haven" investment. So, during periods of economic crisis or instability, many people will end up flocking to gold as an investment because its price won't fluctuate as much as everything else. You can also invest in gold digitally such as with ETFs, however, digital gold doesn't have the same benefits as physical gold.
Most notably, the price of digital gold tends to fluctuate more than the price of physical gold. Also, digital gold is not a hedge against inflation as its physical counterpart is. Another benefit of physical gold is that you can rest easy knowing it's in a safe location and that the state of the economy can do little to affect its value.
The main downside of gold bullion bars is that they are not very liquid. You can imagine that it would be difficult to exchange a gold bar for cash if you need physical cash in a hurry. Gold bullion coins are more liquid since they each contain smaller amounts of gold, but they can be harder to store since they are much smaller and can't simply be stacked up in a room.
So, now that you've seen what gold bullion bars have to offer, how do silver bullion bars compare?
What Are Silver Bullion Bars
As with gold bars, when you invest in silver bars, you can expect to receive pure silver. Silver bars are not as popular of an investment as gold bars, but that does not necessarily mean that silver is a bad investment. As a matter of fact, investing in silver is often a great place for beginner investors to start building their portfolios.
The main reason for this is that silver tends to be significantly cheaper than gold, no matter the form. So, if you've never invested in precious metals before and don't want to spend a lot of money, silver is the way to go. As with gold, you can buy silver in the form of bars or coins.
You should keep in mind that it is often more economical to buy precious metals in the form of bars because the price by weight is lower compared to bullion coins. There are a few downsides to investing in silver bars, however. For example, the price of silver tends to be more unstable than the price of gold.
Because of this, silver is not as much of a safe haven investment as gold is. However, even though silver can be more volatile, it still is a safer investment than other precious metals such as platinum. The reason why the price of silver fluctuates so much is that it is not only used as an investment but also used by various industries for products such as electronics and photographic film.
Even though the price of silver can go up and down, keep in mind that you likely won't spend a lot of money on silver in the first place since it is so much cheaper than gold.
Gold Bars come in many shapes and sizes. This in particular is a 1/2 oz Gold Bar from Switzerland. Photo Credit: Investor Crate Staff Picture.
Gold Bullion Bars vs Silver
By the end of this article, you should know the differences between gold bullion bars and silver bars. By knowing the pros and cons of both precious metals, you can make better investment decisions in the future.
To learn more about buying precious metals, contact us here.
This is in no way to be considered investment advice. Past performance is no guarantee of future results. Asset allocation and diversification do not ensure a profit or guarantee against a loss. Keep in mind that any form of investing involves risk and you should always consult with your financial advisor before making any financial decisions. Investor Crate, LLC., it's subsidiaries and staff will never advise you on any asset as our aim is to provide a fun and affordable service should you decide to purchase Precious Metals.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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Gold is my all-time favorite. I think it’s a great investment and always goes up in value.
Multiple proxy wars is good news for the metals.
I would love some gold but silver will have to do for now.
At this point, silver is my only option based on my Financials.
A mix of both is the way to go. Gold takes up a lot less space for the investment cost, but silver is much more barterable for day to day needs.