Precious metals such as gold, silver, and platinum are considered safer investments in periods of increased market volatility and uncertainty because of the stability that they offer investors. In fact, the value of precious metals tends to rise during periods of economic turmoil because the fear of a market crash often leads to an increase in their demand.
Interestingly, gold seems to get all the attention among precious metals investors probably because it appears to be the shiniest precious metal – in fact, gold appears to outshine platinum and diamonds in the eyes of investors. More so, gold has occupied an important economic position that spans hundreds of years; hence, other precious metals play second fiddle to gold in their investment appeal.
However, for everyday investors, silver might be a better investment than gold even though it is not quite as popular as gold.This article seeks to intimate you with reasons that make silver a better investment than gold.
Silver Has More Applications Than Gold :- Silver is a better investment than gold is that silver has more industrial applications than gold—the industrial applications of silver adds to its demand. Silver is reflective, thermally conductive, and electronically conducive. In the last 25 years, more patents that require the use of silver have been granted than gold-based patents. It was reported that about 1 billion ounces of silver were used in consumer products in the last 10 years. The industrial applications of silver will also increase in the coming years because only trace amounts of silver are used in industrial applications. Hence, it is not practical to recycle the silver that has been used in commercial applications – it makes more sense to mine and use new silver than to recycle silver from older products.
Uncertainty In Future Supply :- Silver investors will be better off than gold investors in the long term is the level of uncertainties that surround the supply of silver. Uncertainties about the supply of precious metal could affect its trading price and the price tends to rise when the uncertainties suggest that the supply will fall.