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
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
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
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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