Should I Buy Gold or Silver in 2024?

Written By Colin Kuehn  |  Gold 

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This year investors will be faced with more uncertainty. The Federal Reserve will most likely pivot its monetary policy and inflation will continue to be a concern. Many experts believe that real rates will remain in low to negative territory. With all of this economic uncertainty, many people wonder if precious metals like gold and silver are a smart investment, and if so, which metal is better to buy?

In this article, we’ll break down everything you need to know about gold and silver, so you can decide which one is the best investment option for portfolio.

Silver: The Slower-Growth Asset

three silver bars in a stack

There is an interesting trend in the future of silver prices. Unlike gold, silver prices are influenced heavily by industrial demand. Financial market instability can suppress industrial demand. In addition, there are transaction fees associated with buying and selling silver bullion. These fees can run anywhere from five to ten percent.

The price of silver has already seen significant losses this year and this could happen even more in 2022. The world economy may even go into recession and stocks could trade lower for two or three years. If the stock market continues to decline, this will negatively affect silver. Fortunately, there are other options for investors.

Silver is an attractive investment option because it is a unique precious metal with a broad range of uses. Silver is an excellent thermal and electrical conductor, making it essential for many industrial uses. The industrial sector accounts for more than half of silver demand. In times of economic uncertainty, investors should consider silver as a safe haven asset. The metal has a long history of containing value and has a wide range of uses, making it a good inflation hedge.

In addition to industrial uses, silver is also widely used in electronics and solar panels. It is also commonly used in contact lenses, switches, and fuses, which translates to a high demand for silver. The demand for these products will ultimately boost the price of silver. In 2022, the dollar index is expected to rise again, potentially harming the price of hard assets.

Investing in silver via exchange-traded notes is an excellent way to speculate in silver’s future value. While ETNs do not hold silver themselves, they track the value of silver on a global exchange. This allows investors to benefit from rising prices with little of the risk associated with physical mining. Another option is purchasing silver bullion directly.

Gold: Traditionally the More Stable Investment?

six gold bars in a pile

With the global economy slipping, investors are once again looking for safe havens. While central banks have been increasing their gold reserves, and it’s expected to reach a record high this year, the global economy is still not free from uncertainty.

For this reason, it is crucial to diversify your portfolio with a variety of investments, including gold.

Despite a rising interest rate environment, many experts believe gold will continue to be a safer investment than other assets. The recent increase in the consumer price index is raising concerns about the direction of the economy and the Federal Reserve. In addition, the United States could be on track to hit double-digit inflation levels in 2022, which could cause the Federal Reserve to tighten its monetary policy even further.

There are a few reasons that gold may be a safer investment than stocks over the next couple of years.

First of all, gold has been around for centuries, and its price has never fallen to zero. Secondly, it is easy to buy and sell, and you can sell it for cash if you need to solve a temporary cash flow problem. Moreover, unlike stocks, gold does not fluctuate in price over time. In fact, it has a long-term pattern of spiking upward and falling, followed by multi-year stagnation. Hence, it has a questionable place as a long-term investment.

Despite the uncertainty in the economy, the precious metal has been a strong performer over the past couple of years. Its price has outperformed commodities such as oil and coal, as well as soaring yields. In addition, gold has outperformed junior and intermediate gold producers, which have fallen 4% on average in 2021.

Historically Commodities are a Safer Investment than Equities

When compared to equities, commodities offer more diversification and better returns. For example, investors can use commodities as a hedge in case of a recession.

Unlike stocks, commodity prices tend to rise with inflation. Moreover, they serve as ballasts against stock declines. One example of this is the oil price, which recently skyrocketed due to supply chain problems and rising demand.

As long as the global supply chain continues to suffer, commodities are a safer bet. They are also a hedge against Fed rate hikes. Broad market products, like commodity ETFs, are widely used for asset allocation strategies. However, investors must understand the risk and reward associated with the stocks held in these ETFs.

In addition, if you want to avoid market volatility in the next year, consider investing in commodities. The global economy is expected to slip into a recession by 2022. On the other hand, emerging market equities have held up better than the developed world, and could offer an attractive entry point for investors.

Investors are increasingly turning to commodities as a safe haven for their money. In the past year, the Dow Jones Commodity Index (DJI) outperformed the U.S. stock market, and it has beaten the S&P 500 by 27.5%. This year, the best-performing commodities ETFs have been natural gas and oil funds. Rising oil and gas prices and inflationary concerns have helped these funds outperform the market.

Commodities are historically correlated to inflation. If inflation is forecasted to rise, a reasonable allocation of commodities to equities is a good way to protect your portfolio. In addition, they can also help diversify your portfolio.

Gold & Silver are Cheap to Store

Gold and silver prices are rising, but the relative value of both assets is relatively low. Both metals are subject to inflation and price bubbles. It’s a good idea to have at least some of each metal in your savings account to provide an emergency cash source. Personal emergencies can include loss of employment or medical emergencies, while economic emergencies include a stock market crash or rising inflation.

With global demand for energy soaring, there’s a big chance that silver and gold prices will rise. Silver has the most upside potential, thanks to its relative cheapness. Silver also figures prominently in green energy and emerging technologies. However, it has been lagging behind gold in recent years. Meanwhile, platinum is gaining in popularity, with analysts pointing to its upside potential.

While gold is the most expensive of the two metals, silver is a better long-term investment. In fact, it is more affordable to store than gold, which is a great way to diversify your portfolio. Investing in gold and silver can also help you hedge against market downturns.

Whether or not gold is cheaper to store in 2022 will depend on what interest rates do in the coming years. If interest rates go higher, silver prices are more likely to go up. In addition, the dollar is likely to be stronger against gold and silver as a safe store of value.

Is Gold or Silver More Volatile?

The world economy has a rocky start in 2022, and the stock market has slid for three weeks. Inflation is also worse than expected, and the Fed is talking about raising rates throughout the year. Despite these issues, the precious metals are poised for a breakout.

Historically, investors have relied on gold and silver as hedges against inflation. But now, with rising energy prices and uncertainty about future interest rates, investors are looking for alternatives to traditional cash. In addition to gold and silver, cryptocurrencies such as Bitcoin and Ether are a great alternative to cash.

While the global economy is increasingly electrified, the value of silver is more volatile. A deflationary depression could harm silver’s price, but a highly inflationary government can boost its value. This can be a double-edged sword for investors. The price of silver is now about 20 percent higher than in August 2010.

In terms of volatility, silver is more volatile than gold. This means that small changes in silver can have a bigger impact than in gold. On a good day, silver will increase more than gold, while a bad day will cause it to fall more. But there are exceptions. Investors must be emotionally prepared for this volatility.

Silver and gold prices will be driven by the state of the economy and investor sentiment. When the economy is weak, investors will turn to gold and silver as safe havens. As a result, prices may rise more in 2022.

Where to Buy Gold and Silver

When it comes time to buy gold and silver, you have a lot of options. You can check in with your local pawn shops, jewelers, or there are many bullion dealers that you can connect with online as well.

My preferred choice is Goldco, for a number of different reasons.

First, they’re precious metals IRA specialists, so if you have an existing retirement account, they can help your rollover over some or all of your funds into a precious metals IRA.

They also sell gold and silver as well, so you they have most of your precious metals investment needs covered.

At last check they were offering up to $10,000 in free silver on qualified IRA accounts – learn more and see what they have to offer by signing up for their free Gold IRA investing kit


Top Choice for Buying Gold and Silver

Goldco is our preferred company for buying gold and silver, and they're experts in helping you use your IRA or 401k funds to purchase precious metals. They boast an A+ Rating from the Better Business Bureau, and more than 2,500 5-Star customer reviews. They also offer some of the lowest fees in the industry. Learn more below:

Last Updated: December 18, 2023