Which is a better form of investment? Is it gold or silver? You can look at the numbers.
Prices of both commodities climbed up at the beginning of this year. Investors are aware that if the price of gold increases, silver performs even better. However, silver belongs to a tougher market compared to gold. When supply is limited, demand growth sheds unequal impact on price. Silver is also an option for gold as prices go up given the cheaper cost. Gold-to-silver price percentage is exceptionally high at 75. Hence, silver prices have sufficient opportunity to do better and reduce said gap.
One assumption is that purchasing silver at existing market prices will likely be a lucrative trade for 2015 unless all precious metals are left out by markets and maneuvering like during the last three years. It looks like the cycle for gold will be positive for the rest of this year. It cannot be denied that we live in a world where appraisal of stocks, bonds and property or realty is being driven up. In this case, it is important to decide whether you will opt for currency notes or gold.
There is no doubt that gold, silver and other metals have been part of financial disasters in the past like that of the 2008 gold crash. Prices collapsed as fast as these soared. From June of 2006 until November of 2008, gold was considered a more logical investment compared to silver. During this time, investors in gold would have gained at least 10 percent profits whereas those who chose silver could have lost more than 20 percent.
From 2008 to the middle of 2011, silver proved to be more rewarding than gold. Nonetheless, from May of 2011 until 2015, gold is seen as a better investment with minimal losses for stakeholders. For those who wish to make detailed computations and analysis, it is not sufficient to put side by side percentage proceeds. Shrewd investors should look closely into risk-adjusted income. In short, investors should expect higher profits for taking more risks. An investor who wants high risk-modified profits will naturally seek complete and significantly higher returns from silver against gold to counterbalance volatility. Stakes are extremely high that for three years or more, gold will turn out as a better venture than silver unless there are new basic developments.
Industry analysts claim silver surpasses gold if speculation is rampant among investors in precious metals. However, speculative investment for these commodities will possibly remain restrained over the near future making gold clear favorite over silver. In fact, the status of gold right now is more of a substitute currency to fiat notes.