Gold or Silver: Which is Better

Hello, friends, This is Vijay Bhambwani here. In this video, I am going to answer a very specific query about whether you should be buying gold over silver, or you should be prefer silver over gold.

Now I am going to present some pros and some cons about investing in both relative to the other, not in absolute but in relative comparison to the other.

Gold has been the prima donna or the primary, or the first preference of store of value and hedge against inflation for mankind for over 3,000 years.

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Whenever people have money to save and in the absence of banking or any other organised form of paper money, etc up to a couple of hundreds of years ago, gold was a primary source of storing your wealth, and so has silver been.

But as mankind evolves, as society evolves, as technology changes and upgrades itself, whereas uses are found for elements, molecules, and atoms that the world has to offer. Silver is becoming a primary requirement and is now an electrically critical element (ECE).

For those of you who are not aware, you cannot have 5G technology in mobile telephony without the use of silver. Where will silver go? A little bit of silver will avoid each and every 5G instrument. It will go in each and every switching set in the cell network towers of the 5G.

You cannot have electric vehicles without silver. There will be approximately 55 grams of silver in each electric vehicle.

Can you really dream about having solar power with the help of photovoltaic cells when silver is not around?

Now, obviously, days are things that did not exist even 50 to 100 years ago. Therefore, as society evolves, the priority or the importance of one metal versus is the other is likely to undergo change. There is no doubting that gold will remain the primary hedge against inflation and store of value, but it does not have industrial applications. This is where silver wins.

Now, from the perspective of investments, let's talk about what we want from our investment.

Number one. We want the fastest return on our money. Number two. We want the highest return on our money. Number three. We want the highest return in the fastest possible time, at least level of risk involved.

So any investment that meets all these three criteria is a better investment. Here silver had industrial applications. It basically has a very strong and optimistic future ahead of it, where demand and consumption patterns are concerned. But one aspect and that is by no means a small aspect, is going marginally, against the case of silver, and that is statistical beta.

As a trader who believes completely in statistical trading models, I notice that the beta, which is the pure price volatility of silver, is significantly higher than gold.

Does availability mean that it will rise more than gold or fall more than gold in bull in bear markets, respectively? Not necessarily so, but it can be the case.

What I mean by volatility is intraday, it will go up and down more than gold will. So to traders volatility is a sheer thrill because it allows you to get in and get out of trades and try and make money. Of course, volatility a knife that cuts both ways. You can make as well as lose larger sums of money, but it's an opportunity.

To an investor, volatility could be a heartache. It could basically make you sit in front of the screen rather than being relaxed and going out for your evening walk or morning walk or enjoy your life as a passive investor a little more easily. High volatility items will try and keep you on the edge of your seat and maybe even bite your nails sometimes.

So silver is significantly more volatile as compared to gold. If you have the stomach for it, I think if you can overlook the volatility aspect, percentage returns over the next five year period is likely to be higher in silver because of the reasons I just told you. Mobile telephony, electric vehicles and photovoltaic cells, solar power.

Note how crude oil and natural gas prices are spiking up and mankind is trying to basically meet its energy requirements and meet the zero pollution kind of target, net zero, as it is being called. Therefore, alternate sources of energy will be the way out, and silver will be, as I said, electrically critical element that will be in use.

So gold will be a financial asset. Silver will be a financial cum industrial asset. The next five years' time frame, if my computation is correct, belongs to silver being a little more investor friendly in terms of return on capital employed, provided you are able to stomach the volatility.

Now don't let this influence your decision. But I would tell you what I would do. I would go with 60% of my money in silver and 40% in gold. But like I said, that's just me. If somebody out there says I want 30:70 or 70:30 or 50:50, hey, all the more power to you. The beauty about any investment or trading blueprint is that it should be to the complete satisfaction of the investor/trader.

So whether gold is going for you or is silver good for you, take your pick. How do you buy it safely? Watch my past videos. How basically you should be testing them, not get changed etc, it's all there In my recent video.

I hope my videos are adding value to you and helping you gyrate through the labyrinth moves of the markets much better as compared to what you were doing before. Friends I'll bid goodbye to you in this video not before reminding you to click like on this video if you liked what you saw.

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I wish you have a very, very profitable day. Take good care of yourself and your investments. Thank you for your patience Vijay Bhambwani signing off for now. Bye.