We live in an age where everyone is talking about personal finance, investing at an early age, investing in mutual funds, stocks and bonds and what not.
But no one really talks about the investment that is so close to us. Yes, we are talking about gold and silver investment. Both investments are so rooted in our traditions. We buy it on festivals and auspicious days, as well as gift it on weddings.
Did you know that in India, households saved an impressive 384 billion rupees in the form of gold and silver in 2021, according to Statista? That’s a lot, isn’t it?. It shows the innate love for gold & silver of Indians.
This is the reason why we thought to give you a comparison between both investment options and how should you invest.
Pro Tip: We will show you the benefits of precious metal investment and let you decide better option for you. And we also have a smart savings strategy for you at the end. So keep, reading.
Gold Vs Silver – Benefits Of Gold Investment
Gold opens all locks. No lock will hold against the power of gold. — George Herbert
The quote says it all. But do you know what makes it so powerful?
It is the pace at which the gold prices have increased in the last 10 years. If we go back to the year 2013, at that time the rate of 10gm of 24k gold was approximately Rs.29,600 which has increased to around Rs.52,790. Well that’s a big jump.
This demonstrates how profitable gold is in the long run. And let us tell you price is not the only factor that makes it so beneficial.
To have a proper understanding of the yellow metal investment, you will have to read these 3 key points to make your investment decision.
Risk Management: Negative correlation to stocks, bonds and commodities
Gold has an inverse relationship with stocks, bonds and other commodities. It means that, When the price of equity goes down, the prices of gold tend to increase. So it is advisable to buy gold to manage risk because when you have gold in your bucket you can easily secure your investment.
Low Volatility: Silver is more volatile than gold
Gold has limited industrial applications. According to WGC (World Gold Council), Approximately half of all gold consumed is in the form of jewellery. As a result, prices are not linked to the global economy, whereas silver is widely used in industry. As a result, silver prices are heavily influenced by market instabilities, and prices fluctuate significantly more than gold prices.
Return On Investment: It is more expensive than silver but gives an equivalent return on investment
As we all know, gold prices are very high compared to gold. The price for 10gms of 24k gold is approximately Rs.58000 whereas the price for 10gms of silver is approximately Rs 750. These are approximate figures and may vary according to the time & place from where you are reading this.
But, the return on investment that you get is great and justifies the rates. You may not believe this but, It has given around 12x returns over the period of the last 20 years.
Let’s say if you purchased gold in the year 2000 at the rate of Rs.4400 per 10gms then its value would be around Rs.53000 today.
Yes, the return is that huge. If you are thinking about investing in gold, don’t wait for the right time, buy it right away if you have a sufficient budget. But make sure to read the benefits of silver as well because you never know, you may find it worthy as well.
Silver Vs Gold – Benefits Of Silver Investment
Silver is a highly undervalued asset and its price is destined to rise. The fundamentals are certainly in their favour – ROTBART & Co.
This is a quote by an organization that deals in precious metals. They see huge potential as an investment option, and we are not even surprised.
A good investor always evaluates everything before making a decision. Keep reading to become a smart investor & know the benefits of silver.
Cheaper Than Gold: You can start investing in silver with a small amount
As we told you earlier, silver prices are very low which makes it more affordable than gold. Also, you don’t need to save for a long time to convert it into an investment. So it is easier to invest in silver than gold. You can start early with a small amount, making silver a suitable investment for everyone.
High Industrial Demand: Prices of silver may appreciate at a fast pace
Silver has wide industrial uses from electronics, medicine, photography and so on. If the economy faces a boom, the demand for silver tends to grow due to which the price increases. Also, the demand for silver fluctuates as the economy grows. So, if you can afford to take a small risk, you should buy it right away.
And if you can’t take the risk, we have a solution for you. Continue reading to find out.
Why Are Both Precious Metals Worthwhile Investments?
Robert Kiyosaki once said that Gold & Silver has a world market that transcends national borders, politics, and religions.
According to him, both metals are highly valuable. So according to us, a wise idea would be to plan your finances smartly and invest in both metals as both of them are worthwhile.
No…no we are not confusing you. We are just showing you a smart way to get the best of both worlds.
If your investment bracket is high, you should divide your budget and put your money in both gold & silver investment.
Read the following points and you will understand why we are saying what we are saying.
Hedge Against Inflation: Prepare for future uncertainties
With rising inflation, the value of your money goes down because purchasing power decreases. But this is not the case with gold & silver because when inflation rises, the prices of these precious metals also increase. As a result the value of your investment also increases.
These metals also protect you from economic instability because these metals become more valuable in times of recession.
Risk To Return Ratio: Investing in precious metals is profitable in long term
Gold & Silver investment is a low-risk investment that gives good long-term returns. Other financial instruments might give high profits in short term but they come with a really high risk whereas silver and gold are very stable investment options for you to secure your future without taking much risk.
Best Investment Option For Everyone: You don’t need a financial advisor to buy gold and silver
If you go invest in stocks, bonds, ETFs or other assets, you constantly need the help of an expert regarding where to invest, how much to invest and so on but when it comes to physical gold and silver investment, you can pretty much do it by yourself.
All you need to do is make sure that you buy pure hallmarked metals. Such ease of investing makes both metals a top choice to invest in for beginners.
Convenient Savings/Investment: You can buy gold or silver online
Yes, buying gold/silver online is possible nowadays. You can buy gold and silver online by just using your phone. A range of gold/silver bars and coins are available for purchase as per your desired quantity. You can buy gold and silver online in India from Gujarat Gold Centre (GGC). We advise this because they provide insured delivery of gold and silver which makes it highly secured.
If you want to know more about gold/silver coins and bars, you can visit these two pages. Browse through their range of gold & silver products. We linked their website so that it is easy for you to navigate to their website and checkout their products by yourself.
Pass On The Legacy: Secure the future of your loved ones
Gold/silver is a great way to secure the future of your loved ones. It protects them from any uncertainties in future with gold/silver at their rescue. Our ancestors perhaps knew this fact and started the tradition to buy gold/silver at some festivals or pass it down as a legacy when the next generation gets married. It is even considered auspicious owing to all the benefits that it offers.
FAQs – Investing In Gold Or Silver
Where to buy gold and silver online in India?
If you are looking to buy pure hallmarked gold and silver, you can purchase them from GGC website.
Which is the best investment option – gold or silver?
It depends on your income and ability to take risks. However, both are good investment options and you should divide your funds in a way in which you buy both precious metals if you can afford them.
How should I invest in gold & silver?
The easiest and most effective way to invest in gold or silver is to buy it in the form of bars and coins. To save your precious time and energy, you can order it online.
Conclusion: Which is a better investment?
It depends on your income and the ticket size of your investment. If you are someone who cannot afford gold at the current moment but want to begin the investment journey, silver must be a viable option for you. You can always buy gold out of the profit that you make with silver investment in future.
If you are someone who can afford gold & want some stability, it might be worthwhile for you. But if you are someone looking the get the best value out of your money with a high ticket size, then you should find out the suitable ratio for gold & silver investment for you and buy both the precious metals.