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Is silver an alternative to gold?

In the public discussion silver investments are often mentioned as an alternative to gold investments. What do you think?

October 25, 2011

One Answer

  1. Trustable Gold Posted 

    Both precious metals, gold and silver have in the past been used as monetary assets.

    According to many studies, gold often performs well in times of financial stress or high inflation. On the other hand, the price of silver is strongly driven by industrial demand and economic growth.

    Periods of high growth are often accompanied by higher inflation rates, when both gold and silver tend to perform well. In times of uncertainty or crisis, silver often underperforms due to low industrial demand while the price of gold often rises due to the fact that it is used as an insurance asset.

    Adding silver to an investment portfolio will further increase its diversification. Most providers of vaulted gold also offer vaulted silver.

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