Gold versus Silver
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Gold is one of the most valuable metal known to man! Why? It has no usage except decoration, and so why has it taken on this huge value profile? It is valuable because it is portable, it is rare and it s imperishable. Above all else it has an alternative value to cash. They used to back cash with gold, but no loner. No country in the world is on the gold standard. It is a free for all where banks can conveniently print their own money which has no inherent value. The spot price of gold today is $934.00.
Silver: Silver is a lot less valuable than gold. The spot price as I write is $ 18.00 per oz. That means you need 51 oz. of silver to reach the same value as an oz of gold. Gold is a lot more portable, providing an easier means of exchange. Silver can tarnish and gold can’t. In fact that’s why silver is important. It has an industrial use. It plays an important role in photography, but as more people purchase digital cameras that particular use has declined.
The Best electrical conductor: Silver is the best electrical conductor there is; it is better than gold and a whole lot cheaper. It is consumed in the manufacture of batteries and ball bearings as well as jewelry. Unlike gold, silver is being used up.
There is more gold than silver: In 2004 it was calculated that 150,000 metric tonnes or 4.82 billion oz. of gold was in existence. At the same time the Silver Institute stated there were 650 million oz. (excluding jewelry) available. We see then that there is far more gold than silver sitting on this planet. Gold is not being used up, or not in appreciable amount but silver has an industrial use and is being consumed.
Buy silver: It stands to reason if there is less silver than gold and it is being used up by industry then silver is possibly undervalued. Since 2004 the gold price has increased more than three fold. Silver, too, has appreciated in value. It has enhanced by 80% in value. That is a significant rise, which outperforms most other investments except gold. Silver is still relatively cheap to buy, under $20 per oz.
How to buy silver: Silver jewelry is not value. A $20.00 silver ring probably contains less than a fifth of an ounce of gold. Most of the cost has gone into labor and workmanship and is not based on the metal’s value. Silver coins are not good value either. If you want to physically hold silver, rather than stocks and shares that derive their value from the worth of silver, you can buy silver bullion. Don’t, however, buy it from TV ads. Television advertising is expensive and someone has to pay for the commercial that persuades you to purchase the product. That somebody will be you. Buy instead from bullion exchanges
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26 May 2008, 5:18 pm
You may want to rephrase the opening sentence. There are several metals that are more valuable than gold in terms of US$ per oz (e.g. platninum, rhodium to name two).
27 May 2008, 11:58 am
Fixed and Thank you!