Silver vs. gold

Comparison of silver to gold

When writing about precious metals, it is hard to resist the temptation to compare these two metals. It is worth getting to know the most important differences.

Silver vs. gold: the most important differences

1. Silver occurs 17 times more frequently in the earth’s crust.

2. The above-ground silver stock is however only about 4 times smaller.

3. The investment reserves for silver are lower than for gold.

4. The supply of silver is less recycled, which is less of it cost-effective (in industry, small unit quantities are consumed).

5. The production of silver is to a much greater extent a by-product of other metal mining (72 % vs.  20%) is therefore less flexible in terms of price.

6) The industrial demand for silver is much higher (50% vs. 11%).

7) Silver is less used in jewellery (18% vs. 18%). 59 per cent), they are used for the production of tableware.

8) Banks have practically no silver reserves, neither does it report demand.

9) Silver ETFs are dominated by retail investors (84% vs.  59% on the gold market).

10)  Silver is seen as both raw material and currency, it has a dual monetary and industrial nature (gold is considered to be a monetary asset).

11) The silver market is much smaller.

12) The silver market is more speculative (more futures contracts than physical bullion trading in London).

13) The price of white metal is more variable (30%) than the price of gold (16%).

14) This implies that silver allows for higher profits (but also higher losses).

15) The silver price is significantly lower, which makes this investment more accessible to a wide range of investors.

16) In 2013, there was no outflow of funds from ETF to silver.

17) White metal is not considered to be a „barbaric relic” (in 1997 Buffet itself, famous for its reluctance to „unproductive” gold invested a significant amount of money in silver) or the threat to the system of empty money, has never been confiscated.

18) The transport and storage costs for silver are higher than for gold.

19) Silver black.

20) Silver is subject to VAT, which means that silver margins are higher than on gold.

When to buy silver: