Gold or silver?Five aspects to consider before choosing one of them

En tiempos de inflación muchos inversores valoran tomar posiciones en metales preciosos como el oro o la plata. Ambas opciones protegen contra las incertidumbres y la inflación, pero no funcionan igual.

Therefore, understanding the differences between how each metal is used, its economic nuances and its technical characteristics can help determine which of the two metals could improve more a portfolio.

These are some factors to consider when determining investment in gold or silver to better consolidate a strategic investment and for investors to value which makes more sense for their portfolio.

Finally, we will remember the different alternatives to invest in gold or silver in the market.

one.Silver: more linked to the global economy

La Plata has an important use in heavy industry and high technology.In fact, about half of the silver that is produced is used as an industrial metal on tablets, smart mobile phones, vehicle electrical systems, solar panels and other products and applications.

As a result, silver is more sensitive to changes in the economy than gold, which has less uses beyond jewelry and investment.When economies take off, silver demand tends to grow.

2.Silver: coverage against inflation

If historical data is reviewed, it is observed that both gold and silver have provided good profits when inflation rises, partly because the rise in goods and services prices often coincides with a weaker dollar.

Both metals are valued in dollars, so when the green ticket falls, gold and silver tend to climb because they become cheaper for those who buy them with other coins.For having a greater demand for the industry, silver is more sensitive to these changes: it rises more than gold when prices increase and the dollar depreciates.

3.Gold: Less volatile

Volatility in silver prices is far superior to that of gold.While intra -investment can take advantage of silver volatility windows, for the risk management of a wallet this volatility can become more complicated.

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This volatility can be translated into higher gains in the long term, but often leads to the risk of a greater fall.

4.Gold: greater diversification

Silver can be considered as a good tool for the diversification of a portfolio with a moderate positive correlation with actions, bonds and raw materials.However, gold is a more powerful diversifying instrument.

The golden metal has been consistently decorted with the actions and has little correlation with other large classes of assets for a good reason: gold is less affected by economic descents because its industrial uses are very limited.

How to invest in gold and silver?

One of the most relevant aspects of investing in precious metals such as gold and silver is the great variety of forms that allow.

Physical metals

Faced with actions and bonds, gold and silver can be acquired as physical assets, either in the form of ingots or currencies that can be kept in custody in some financial entities - or even in private homes -.This last aspect is especially relevant to some investors who like to touch the goods they have.

However, the physical physical metal suffers the costs of production and distribution.In addition, not everyone can stor.

Quoted funds

The quoted or ETF funds have become a popular way to expose themselves to gold and silver without the responsibility and risk of storing a physical asset.As with actions or bonds.

Custody and costs associated with gold or silver that support the ETF run on account of the ETF transmitter, which then passes them to the background of the background.

Mining Companies Actions

Some investors opt for the opportunity to buy shares of traded companies dedicated to gold and silver mining or specialized investment funds.

However, miners usually dedicate themselves to the extraction and production of several metals, so they lose part of the impact of variations in gold or silver prices.

In summary, there are several ways to get gold or silver to cover themselves to the uncertainties of the market or the rebound in inflation.Both metals have their characteristics, which means advantages and disadvantages that the investor must know.

The operation with traded products is aimed at investors who must have sufficient experience and knowledge to invest in them.Investment in these products requires constant surveillance of the position as they behave high risk and one00% of the invested capital can be lost.

Before making any hiring, it is advisable to be informed legal, regulatory and fiscally on the consequences of an investment.

The decisions that each investor adopts, both of investment and the level of delegation and advice, are their responsibility.

Past profitability do not guarantee future profitability.

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