When you’re looking at the pros and cons of each gold and silver, you realize that they’re not very similar investments at all. Beginning with gold, it’s a much more long term investment currently. Since the beginning of 2001, gold has risen from less than $200 per ounce to the current price of over $1200 an ounce. The market is has also recently had a price correction, which means it will likely be stable for a while, or even lower slightly before beginning to climb again. This makes it a great time to buy gold, before it starts on the uptrend yet again. In the last 15 years, this current dip has been the largest since the 1980s. The reason for this is partially because it was popular among the general public. In 2001 when terrorists struck the United States, the resulting war caused a sort of gold rush among Americans.
The national debt increased hugely over the next few years, which also signaled an impending inflation rise. Many people sought out investments rather than keeping their liquid cash, and they were right to do so. The national debt increased by unprecedented amounts, and in addition to the increase caused by inflation, there was an artificial increase in market price by the large amount of people investing. However, prices have been lowering significantly lately. It’s hard to say if we’re coming to the end of a dip or not. Where we were previously pulling out of the Middle East, current political conflicts are beginning to bring us back and threaten a large inflation increase again. However, if you plan to buy gold during this dip, be prepared to be in it for the long term if necessary. Prices will rise – eventually. There are currently a lot of people chasing the market and dumping their gold out of fear that it will continue to decline, which in itself causes the decline. It’s important to not fall into this fear, because it’s very likely that we could be on the edge of another upwards trend.
If you buy Silver, the economy is also important in a similar way. But despite the lower price, there is actually a much smaller silver market. This makes it much easier for a silver rush to bring huge price increases followed by market corrections, thus making the market very volatile in comparison to gold. The silver market isn’t rising quite as much as gold, but it is safe in the way that it generally is following the inflation rate and national debt rate. You’re not as likely to increase your wealth, but it is a safe way to store your assets if you’re afraid of another mass inflation caused by the brewing conflict in the Middle East. If you are planning on investing in silver, this is currently the time to do it; before more political strife occurs and your dollar becomes worth less than it used to. Because of the small market, a silver rush compared to the gold rush of 2001 could see gains unprecedented since the 1980s.