How to Choose the Best Precious Metals to Invest In

The past blog posts have made you aware of the benefits of investing in precious metals as opposed to investing with a bank or other means. But there are a variety of precious metals out there, so which ones make the best investment?

We’ll discuss two of the most common precious metals to invest in: Gold and Silver. That way, you can decide which option is best for you. 

Factors to Consider When Choosing the Best Precious Metals to Invest In

Appreciation

Both gold and silver tend to appreciate over time. Gold has gone from a value of about $265 an ounce to $1850 an over the past 12 years, while silver has gone from $5 an ounce to $45 an ounce in the same time period. 

Worth

While silver comes out of the ground at a rate of approximately 7:1 with gold, one of the major distinctions between the two precious metals is in their industry and their recoverability.

Both metals have tremendous worth for different reasons, which we’ll discuss below.

Gold

All of the gold ever mined is equivalent to the amount of steel poured in just 1 hour. And because it is rare and of high value, all the gold ever mined exists here today. Old computers that used gold were never discarded before the gold was retrieved. 

best precious metals to invest in

Silver

Silver, on the other hand, is the second most used commodity on the planet, behind oil, and stockpiles are dwindling. Silver’s low cost and conductive and thermal properties are used in 30,000 industrial applications across 10,000 industries. And when silver is used, in most cases, it is gone forever. 

Think of all the cell phones thrown away. The micro solder points using silver, once discarded, are economically unrecoverable at current values. With the world expanding its population, more and more people in once poor countries are utilizing the same technologies and will be well into the future. 

The demand for silver has only increased, and less and less of it is around. 

When the world figures out just how rare it is, just how large the demand is, those that bought either metal at these prices will pinch themselves for the fact they own some.   

Ratio

The ratio between gold and silver spot prices is called the gold/silver ratio. It is used to determine if one metal is more under or overvalued than the other. It measures how many ounces of silver you can buy with one ounce of gold. 

The gold/silver ratio was written into our bill of rights at 16:1, averaged over the last 100 years at 55:1, and currently sits at about 78:1. Silver appears to be the better buy if you can store it right now.

Liquidity

Both gold and silver are extremely liquid assets. They can be bought from various retailers and are available for purchase 365 days a year, 24 hours a day, seven days a week, in any currency, in any language, around the world. This is one of the benefits of owning real money.

Storage and Transport

This is where the difference between silver and gold becomes blatantly clear. In a shoe box, you can fit either about $20K in silver or $1M in gold.

Knowing this should help you think about what and how you would like to store your metal before you buy. If you don’t, you could end up with a lot of heavy packages that moving, especially in a hurry or over a long distance, may not be possible. This should be a major consideration in your decision-making process.

Investing in the Best Precious Metals Today

As you can see, if you want to know the best precious metals to invest in, both gold and silver have distinct advantages. If you are looking to save, then gold is the better buy. If you are looking for growth, then silver is the better buy. 

Hopefully, these posts have taught you much about finances and made you aware of the benefits of buying precious metals. 

If you are ready to move forward, don’t hesitate to contact us today at West Hills Capital. We’ll provide you with the advice you need to make the right decisions to achieve your financial goals and secure your future purchasing power. Call us now at (800) 867-6768!