Should I buy Gold or Silver?

Morgan Dollar

Morgan Silver Dollar


A common question posed by collectors and investors in precious metals is “Should I buy gold or silver?” In many cases it is personal choice. But some situations may impact one’s personal choice. Your budget, your investment holdings, and what you already may have in precious metals can and should influence and guide your decisions. Let’s investigate this a bit further.

 

 A Case For Silver

Benjamin Franklin

Franklin Half Dollar

If you are just starting out and have a modest budget, then it makes sense to purchase silver coins or bullion as your first investment. Plainly speaking, silver is much cheaper than gold on an ounce per ounce basis. Prices for most silver coins are relatively low, far less per ounce that gold coins. For example, have a look around the site of our preferred broker, Golden Eagle Coins: With a budget of $100, you could buy an American Eagle silver dollar, A Canadian Maple Leaf silver dollar and an Austrian Philharmonic with considerable dollars to spare.

Moving Into Gold

Pre-1933 US Gold Coin

Gold Dollar

Of course, if your budget is larger, or if you already have a nice investment in silver, it would be prudent to expand into gold. One-tenth ounce American eagle gold coins can be had presently for less than $150, and if your budget is small, this would be an excellent starter position. As you ramp up your investments over time, consider full-ounce gold coins and pre-1933 American gold coins. Some of the pre-1933 gold coins, such as the famous St Gaudens $20 piece, are beautifully designed and have excellent numismatic value as well as investment properties.

A Beautiful Mix of Both

Most folks hold a mix of silver, gold and even platinum coins and bullion in their precious metals investment. If you tilt to being a coin collector rather than a straight investor, favor the coins, and lean purchasing those that have been graded by professional grading firms. Keep in mind that graded coins are available at Golden Eagle Coins as well. An example of an excellent collection mix would include selected pre-1964 silver quarters, half dollars and dollars as well as pre-1933 gold coins.

Some Views Facebook Groups

Recently I asked a Facebook Group to which I belong the very question in the title of this page: Should one buy silver or gold?

As you might imagine, the responses varied based on the situation of the individual leaving the comment. Here’s a sampling of their thoughts:

  • “Its a no brainer, its silver….silver will always be ahead in terms of fold increase.” – Caden
  • “At its peak, gold was about $600 higher or 1/3 over its current price. Silver was THREE times higher.” – John
  • “Gold is 70 times easier to store and hide .. doesn’t rust or oxide .. more liquid worldwide.” – Cihat
  • “Purchase both, purchase silver due to its affordability and its upside and buy gold when you can and especially when it dips.” – Harold
  • “Adding debt-free currency like gold not only greases the wheels of economic trade and activity, but also allows for existing debt (fiat currency) to be SAFELY purged.” – Michael

The Bottom Line

In summary, “Should I buy Gold or Silver? It depends on your tastes, your budget and the extent and mix of the holdings you already own.

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10 thoughts on “Should I buy Gold or Silver?

  1. Jason

    Thank you for this very informative article, you make it really tempting to invest in gold or silver.

    Reply
    1. Mike

      Indeed, investing in gold and silver is not only fun, but can be very profitable as well. Thanks for visiting!

      Reply
    2. Lorenzo

      American Silver Eagles and Maple Leafs are likely the least over spot. I’d recommend Maple Leafs since they are 9999 fine and ASE is only 999 fine.

      Reply
      1. Mike Post author

        Great points Lorenzo and thanks for your contribution. Indeed, the Maple Leafs have a higher degree of fineness. Not only that, but their artistry is beautiful as well. Take a good look at the intricate design of the leaf on the reverse of the coin. They make excellent investments and as you say, are available for little over spot. Sounds like you have already answered the question: “Should I buy gold or silver”?

        Reply
  2. Gustavo

    Hi Mike,

    Great stuff, I want to learn more about investing in gold and silver. I find it fascinating that investing in precious metals has been around for ever.

    Gustavo

    Reply
    1. Mike Post author

      Gustavo,
      Thanks for visiting. Glad to hear of your interest in gold and silver as investments. Gold and silver have been around since the Earth formed. It was only about 4000 years ago that people realized they were a store of value and began using these metals as money and investments. Please come back often.

      Reply
  3. Moritz

    Hello,
    I always thought it is only good to buy gold, but this is just not possible for me at the moment.
    With the things I learned here today, I know that it is good to start with silver first, when the budget just isn’t big enough for gold yet.
    Cheers.
    Moritz

    Reply
    1. Mike Post author

      Hello Moritz, I glad you found this helpful. Your’re quite right, at the moment silver is quite affordable. It’s a good time to buy. Silver American Eagles are a great coin to consider as you add to you holdings.

      Reply
  4. Roger Humbke

    Just maybe, Trump will consider putting America back on the Gold Standard. Wow – would that ever result in some big changes – for the good. And then if he got out of being the world’s policeman, decimated the military for money to improve education and health – America could be great again.

    Reply
    1. Mike Post author

      Thanks Roger for visiting and commenting. Regardless of who’s in charge, the geopolitical situation in the wold at large is a little scary. Gold and silver tend to hold up quite well in uncertain times. Wheter we are on the gold standard or not, precious metals make good investments and hedges against turmoil today.

      Reply

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