What is the difference between gold and silver when investing?

[investing newbie]

As my name suggests, I'm new to investing. I have a question that I hope somebody can answer and please forgive me if it's stupid. I'm wondering what the difference between gold and silver is when investing. I understand that gold is more valuable than silver and that gold is less plentiful than silver, but I'm wondering what economic factors are taken into account for gold and silver that may be different. Does it mean that because gold is more expensive, that there is a greater chance for me to make money investing in it than I could with silver? Basically I'm looking for any information that I need to know about the differences when investing in these two metals and what I should keep in mind when I decide which one I want to invest in. Thank you in advance for your help with this question.

[jIM_Ohio]

As my name suggests, I'm new to investing. I have a question that I hope somebody can answer and please forgive me if it's stupid. I'm wondering what the difference between gold and silver is when investing. I understand that gold is more valuable than silver and that gold is less plentiful than silver, but I'm wondering what economic factors are taken into account for gold and silver that may be different. Does it mean that because gold is more expensive, that there is a greater chance for me to make money investing in it than I could with silver? Basically I'm looking for any information that I need to know about the differences when investing in these two metals and what I should keep in mind when I decide which one I want to invest in. Thank you in advance for your help with this question.

I will further complicate the issue by HOW do you invest in these...

One strategy is to own the physical commodity- gold bullion or pure silver coins, for example.
Another strategy is to own companies (stocks) which mine the physical metal.
A third strategy is to use options to purchase the commodity and focus on options strategies.

I think asking do you invest in X vs Y when both are in the same asset class (precious metals) will have you seeing a forest and miss every tree in the forest. Just my $.02.

[MatthewC]

I would have to say that the overall answer is that there isn't much difference.

Personally, I would recommend staying out of it. Gold and silver have been hyped way too much. They are very speculative investments. I wouldn't put a single dollar of my own money into either one of those.

[greenskeeper]

I understand that gold is more valuable than silver and that gold is less plentiful than silver, but I'm wondering what economic factors are taken into account for gold and silver that may be different.

There is about 1/2 as much silver bullion as gold in the world.

Silver is consumed by industry (and is in practically everything), less so for gold.

The traditional silver/gold ratio has been around 15:1, right now it is 63:1

Both are a good way to preserve wealth since we are only about 40 years into the paper dollar experiment, massive debt and endless money printing going on by our own Federal Reserve and other central banks around the world.

I personally prefer Silver for what it's worth (pun intended)

[GoldReference]

As my name suggests, I'm new to investing. I have a question that I hope somebody can answer and please forgive me if it's stupid. I'm wondering what the difference between gold and silver is when investing. I understand that gold is more valuable than silver and that gold is less plentiful than silver, but I'm wondering what economic factors are taken into account for gold and silver that may be different. Does it mean that because gold is more expensive, that there is a greater chance for me to make money investing in it than I could with silver? Basically I'm looking for any information that I need to know about the differences when investing in these two metals and what I should keep in mind when I decide which one I want to invest in. Thank you in advance for your help with this question.

The only problem: there is basically no more of it left!! Silver has outstanding qualities as an electronic conductor and is found in pretty much any electronic item produced on the planet.

If you're interested, download the eBook "The Silver Bomb today". An absolute must-read for anyone that want to fully understand why silver is the investment of the decade.

[Chris Leese]

They are both in the precious metals asset class. Both are safe haven investments where people/countries flood to in time of turmoil. However, gold is what is talked about most and as you indicated more expensive. However, it does not mean that you will make more money by investing in gold. For example, if you look at the historical ratios of gold to silver prices, and believe the ratio will return to those, than silver has more upside potential than gold. Again, not saying it will but has the potential to.

Also, silver is also used/needed for other forms such as electronics, conductors, etc. so there are other demands for silver (other than an investment).

[J.Apple902]

Both are a good way to preserve wealth since we are only about 40 years into the paper dollar experiment, massive debt and endless money printing going on by our own Federal Reserve and other central banks around the world.

There is something very significant to be said about this. It worries me what the Chinese and other emerging markets are doing. They are buying lots of hard assets, mainly gold and real-estate. I think many of these other countries have lost faith in many things: fractional reserve banking, Fed inflation, the departure from the gold standard in general, etc. I don't know what place gold buying has for a young investor (I think limited), but for someone trying to protect assets, it may not be a good idea. Now, does the Fed even have gold any more? Another story.

[97guns]

gold and silver have tracked each other for hundreds of years, back to pre jesus days

[97guns]

you got some knowledgeable answers but ultimately you have to make the decision, keep researching and you will find the answers. with all this money printing, operation twisting, quantitative easing monetary policy's we are seeing i prefer to be my own bank via pm's

we are not the only country printing money and spending like crazy, every country is doing it, it has become a race to print, it can not continue, it is insanity if you ask me. central banks from all country's are buying gold and now silver is being bought up from the indians and chinese, if they are smart enough to be stockpiling the stuff you should take note.