(Newswire.net— December 19, 2022) — Did you know that around 10.8% of the population owns gold and 11.6% owns silver? If you are thinking of investing in either gold or silver, but you’re not sure when is the best time to do so, you’re in the right place. We have put together this short guide to share the top factors to consider when you’re deciding to invest in gold and silver.
Read on to learn more.
Volatility
When you are investing in precious metals keep in mind that silver is more volatile than gold. This volatility in silver pricing can sometimes be around three times more than the volatility of gold on a given day.
If you’re trading silver then this volatility can be beneficial, but if you’re managing portfolio risk then volatility is challenging.
Diversifier
Silver is a good portfolio diversifier with a weak positive correlation to commodities, stocks, and bonds. Gold is a more powerful diversifier than silver and it doesn’t ever really correlate with stocks and other major asset classes.
Even the smallest gold bars are not affected by economic declines. The reason that gold is not as affected is that its industrial uses are pretty limited in comparison to the industrial uses silver has.
Global Economy Ties
Silver is used in tablets, solar panel cells, smartphones, vehicle electrical systems, and other products many of us use in our day-to-day lives. This means that investing in silver is more sensitive to the economic changes that happen around the globe.
Whenever the economy goes up, the demand for silver rises.
Options to Consider When Investing
When you are buying silver or buying gold, make sure you buy the physical assets. It’s best to buy the physical form of either one and place it in a safe place in your home. You can also find sellers that make coins out of gold or silver making them easier to store.
Another option is to find a mining company and buy shares in those companies. This is a way to invest without worrying about losing your physical gold or silver or having it physically stolen.
One last option is to opt for exchange-traded funds (ETFs). This also gives you the option to have either gold or silver without the responsibility of storing a physical piece of either one. You can use a traditional brokerage account to keep those shares.
Keep in mind that investing in an ETF won’t give you access to underlying metals and there are some precious metal ETFs that don’t benefit from lower long-term capital gain rates because they are taxed as collectibles.
Ready to Invest in Gold and Silver?
Now that you learned our top factors to consider when you invest in gold and silver, it’s time to put our advice into action.
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