Is it better to invest about $600 in 1 troy ounce of gold or 50 troy ounces of silver?
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I would say silver. Here's why; At their all time highs, gold was $850/oz. and silver was $50/oz. Adjusting for inflation, gold should trade at around $3000/oz to equal it's previous all time highs and silver around $175/oz. Now, if you take the current prices of gold and silver ($610.20 and $12.30 respectively), that means if you bought 1 oz. of gold and it reached it's inflation adjusted high, you'd make around $2400, but if you bought 50 oz. of silver and it reached it's inflation adjusted high, you make around $8100. The unknown variable is whether they'll reach those levels. I personally think they will hit their inflation adjusted highs.
Same. Look at the precious metal charts, you'll see that all of them - gold, siver, platinum generally rise and fall in unison.
If you understand the risks of precious metals investing, and were sure you wanted to be in this market, you would buy neither silver or gold.You would buy shares in producing gold, or silver companies, Because the shares will go up at a much faster rate than the price of the metal itself.
Silver seems to have the edge because it is consumed in industry (industrial Metal) where all the gold ever produced is still around, but Gold is THE STOREHOUSE of wealth to the world.
Buy Shares, Take your pick, but Buy Producers, not exploring companies.
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