Silver vs Gold Returns : In the last one year, both gold and silver have given excellent returns to investors. Gold has seen an increase of more than 40%, while silver has also hit a jump of about 34%. In such a situation, the question is natural that whether this glow will remain intact even further and which of these metal can give better returns? Let us understand all those points in this article today, which will help you plan your investment in future:
Silver due to fast
An important reason behind the recent fast in silver is that the demand for silver is more than its supply for the fifth consecutive year. The growing role of silver in industrial use, especially in areas such as solar power panels and electronics, is constantly increasing its demand. Apart from this, the trend of investors towards silver has also increased as investment, as it is slightly cheaper than gold and also has a sense of security.
Why is there fast in gold,
Gold has always been considered a safe haven investment. Investors turn to gold during economic uncertainty, geopolitical stress and increasing risk of inflation. The atmosphere of instability globally for some time has played an important role in pushing gold prices up. Prices have also come up due to gold purchases by central banks. Nowadays, Central Bank (country banks) are also buying more gold. They are buying more than 1,000 tonnes of gold every year, which has never happened before.
Gold and silver ratio (Gold-Silver Ratio)
The gold-silver ratio is extracted by dividing the price of gold by the price of silver. This ratio helps investors to understand how expensive or cheaper gold is than silver. Historically, when this ratio is too much, it shows that silver is cheaper than gold and may have a better investment opportunity. At the same time, when this ratio is low, gold can be more attractive. If we look at the late 1980s, the ratio of gold and silver has increased considerably. At that time this ratio was an average of 70: 1. Today this ratio is around 91: 1. Today gold is at $ 3,030 and silver is trading at about $ 33. This means that silver is still at a low price and there is scope to grow in it. Either the price of silver will increase rapidly or the price of gold will fall or will remain stable, so that this ratio comes close to its long average of 70: 1.
Also Read: Why gold is different in every city of India, know and understand
Who is better option, how to choose investment ,
Deciding which of gold or silver invest in, your risk depends on the target of investing, investment goals and time limits.
, Sleep: If you are looking for a safe and stable investment, which provides inflation hedge, gold can be a better option. It brings stability to the portfolio for long periods.
, Silver: If you are willing to take a little more risk and are looking at the possibility of fast returns, then investment in silver can be considered. Its industrial demand and lower price make it attractive than gold.
Overall, both gold and silver can be part of your investment for 5, 10 and 15 years. Investing in both metals can be a good idea to create a balanced portfolio. With this, you will be able to take advantage of the merits of both and keep your investment safe. It is always appropriate to consult Financial Advisor before any investment.
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