'Buying silver is better than buying gold'

By Daniel Vundy
Silver can be purchased as easily as Gold can, but Silver is the better purchase. Both gold and silver are precious metals that have tangible value. The benefits of each metal have much in common, but there are also differences that must be understood before making an investment.

Both metals are a storehouse of value. Regardless of what happens in the world, a person who has a portion of their wealth invested in gold and silver will have a balance in their investment portfolio. If the world's stock markets and currencies drop significantly (which is very likely happen in the near future), gold and silver will hold their value and likely increase in value offsetting losses in other areas of investment. The more uncertain you feel about the future, the higher percentage of your wealth can be transferred to these precious metals.

Currencies are beginning to lose value all around the world. Due to budget deficits of governments on every continent, and weak economic growth, the future of many of the world's largest nations are coming into question. There is no longer a safe haven to keep your wealth. This is the main reason people have purchased precious metals. They have value and are tangible. Currencies are paper. Granted they are strongly related to a nation's economic output, but in a declining economic environment that is characterized by large deficits, the long term value of the currencies questionable.

Some have tried to move their wealth into gold, but it is silver that is the better investment. All of the reasons that Gold is considered valuable apply to silver. But there are additional demands for Silver in the world. It is true that gold is worth more on the open market, and certainly it is more glamorous, but much of the value of gold is dependent upon people's perception of its value. They believe that it is valuable and this is what makes it worth money. Outside of jewelry, gold doesn't have a lot of applications. It's scarcity combines with its cosmetic appeal is a large part of what creates the value of gold.

Silver on the other hand is also a metal that is deemed attractive and is also used to make jewelry. But there are many industrial uses for it as well. Silver is an excellent conductor and is needed in a variety of high quality and high performance electronic systems. It is also in demand with photography, optics, dentistry, and many other industrial and commercial applications. There will always be a demand for silver because of its variety of uses.