Should I Buy Silver or Gold? 2 Things to Consider
Investing in precious metals, especially gold or silver, is an act that requires copious amounts of patience and resilience. However, even the constant fluctuations in the global market don’t seem to deter the general public from making investments. The promise of getting back more than you put is just too enticing a bargain.
However, total transparency is vital before you put money into any market. Prior to investing in either silver or gold, it’s essential to know what is at stake, and keep some important factors in mind with regard to what each investment entails.
1. They are both physical assets
Unlike most investments that tend to be digital or paper stores of value, both silver and gold are hard assets. This means they’re safe from cyber-theft and large-scale devaluation.
2. No taxes
While many other assets are taxed just solely on possession, investments in gold and silver have no Value Added Tax (VAT) or Goods and Services Tax (GST) imposed on them in a majority of countries.
You may have to pay tax, depending on where you live, if you sell your investments and gain a profit, however. Usually, a precious metals dealer will walk you through your state’s taxation rules.
Due to the physical nature of gold and silver investments, you’ll have to store them in a vault, either at a storage facility or at home. It’s important to note that due to you being able to purchase more silver than gold at the same price, silver tends to need exponentially more storage space. Luckily, you can avail assistance with regard to both private vault storage and storage facilities so your valuables are safe.
Although similar in physical nature, both silver and gold will give you different monetary benefits.
The price differences between gold and silver make one wonder what that means for the monetary benefits. Of course, they don’t call silver ‘poor man’s gold’ for nothing. While more accessible for smaller transactions, silver also tends to be more volatile than gold.
However, although gold is a pricier investment, its liquidity is much higher. It also has an edge over other precious metals during periods of high inflation, making for a better investment to keep or liquidate during an economic crisis.
Silver can be used for an array of industrial uses, ranging from technology to healthcare. This, in turn, means that there are more investors and that there is higher market demand for silver as well. Of course, gold also has industrial uses, but it is no secret that gold tends to be used primarily for jewelry and collectibles.
So, while gold may make for higher cash outs, silver’s higher industrial demand makes it a popular arena for small-scale investors.
Reach out for Guidance
Do you have more questions you need answered? Or maybe you’ve made up your mind and are looking to invest? Whatever the case, Orion Metal Exchange is here to help you through the process. Avail their expert services and make the right decision for your financial future.