Gold or Silver – Which is Better?

Lots of questions coming up again about Which metal to buy gold or silver and we Already know which one I prefer but that Doesn't say much except which one I Think makes more sense for my specific Case so if you're wondering for yourself We need to take an objective look And I can help with that I can do Objective So which is better gold or silver we'll Just jump right in now this is one of Those topics it's a very rare out in the World but it's very common around here Very few people are gonna pit the two Medals against each other trying to Decide which one to buy one over the Other but all of those very few people Just happen to hang out around here on YouTube so we're going to cover it there Are pros and cons to both and I think They both have their own Lanes I don't Think they crowd each other but to Really look at this we have to set Biases aside maybe just look only at Historical performance to start and then Get into some of the Practical reasons You might buy one or the other that Historical performance it's really the Only way to give us a clear idea of Which metal performed better over Certain time frames we just always have To remember here that that's going to Change depending on what time frame we Look at so people can pick time frames

To suit whatever story they're trying to Tell and they do now I try to keep a Little bit of a wider lens so we're Going to start off we're going to go Back to 1971 that's when gold was Decoupled from the dollar and if we Looked at those charts we'd see that Gold has had an annual rate of return of About 7.7 percent while Silver's annual Rate of return in that same window has Been 4.8 percent so Gold's outperforming Silver in that 50-year 50-year-ish time Frame and if we were to go back further We can do that we can go back to 1925 I See those charts too it's pretty similar But there are a lot of reasons why that Data just doesn't make a lot of sense I Mean gold was pegged to the dollar you Couldn't buy gold on the retail Market There were a lot of things that just Makes that time frame not really Relevant usually when someone picks that Time frame to trying to show that the s P has outperformed metals and that's a Case that I'm definitely not going to Pick the other side of it's true now if We want to narrow this down a little bit Look only at this Century well Gold's Annual rate of return since January of 2000 is about 8.7 percent same time time Frame for silver silver is about 6.7 Percent so again Gold's a little bit Ahead that's just over 20 years if we Want to narrow that down to say 10 years

Well that's a a bad time frame to use we All know what happened in 2011 that hung Out until early 2013. so we're looking At the first part of 2013 and in that Case Gold's annual rate of return since Then since well since January of 2013 is About 1.8 percent silver it's actually Negative three percent so bad time frame For silver and give that about six Months when silver started to go down in 2013 that comparison will definitely Start to look better but again it's not A great period of time for either metal Now to be clear we can find time frames That make silver look like it's Outperformed gold but it's very Misleading to show that data it is Possible just like it's possible to show That gold has outperformed SMP we can Look at 2022 to see that or we can pick A specific window beginning just prior To the.com crash it would have been in 2000 and then ending during the more Recent market crash that again it's Going to make it look like gold out Performed the markets but it's Misleading really we need to use rolling Windows of time or just a really long Period of time we'll see in those cases That gold has outperformed silver and if We did go all the way back to 1925 I've Already mentioned that but Gold's Compound annual return since then is 4.9 Percent silver is 3.5

Inflation by the way is 2.9 percent and The SMP has been about 10.3 percent so Yes both metals have stayed ahead of Inflation no neither have done it by Much and the s p has significantly Outperformed all three So a 95-year historical performance Chart is not really going to make sense But if anyone's telling you that Precious metals don't beat inflation Well they're just wronged a 20-year Chart that might make a little bit more Sense and a 10-year chart well it might Make sense too but again all these Comparisons will still only show how the Two compare inside those windows so gold Has clearly outperformed silver over the Long run but there are still windows Inside that windows in time where silver Can be made to look better now I would Say that comparing the two on annual Rate of return still doesn't make much Sense particularly because neither one Makes a good investment asset if you're Looking at the average rate of return It's only going to seem positive if We're comparing them to cash which is Fair that's what I do but it's not going To look good for comparing them to other Asset classes using reasonable time Frames if they're here to offset the bad Times for other assets not to replace Them at least not if you're looking for Growth

So that brings us to some of the more Practical comparisons unit price Acquisition cost those will be at the Top of the list for me storage Considerations are out there it's Something to consider and then the Logistics of selling that would be up There too for me those can all be Qualified but beyond that really all we Have is future opportunity and that's Something that cannot be qualified in Any logical way we're talking about Hopes and dreams we're talking about Somebody's opinions what somebody else Might think will happen and the only Thing that I can really say there that Is objective is that people have been Telling us what they think will happen With both Metals really as long as I've Been paying attention and in the 15 Years that I've been playing along well Anyone saying that the medals are going To break out of the patterns that we've Been seeing while they've been wrong So to me the primary consideration for Deciding what to buy starts with how Much you want to spend and then it ends With how you intend to use them if you Want to spend say 200 or less a month Well silver has an obvious Advantage it Has a much lower unit cost twenty three Dollars per ounce that's a lot lower Than one thousand nine hundred and Seventy dollars per ounce if you want to

Spend say five hundred dollars or more Well gold has a much lower premium it Also takes up a lot less space so now The advantage goes to gold in between Those two numbers two hundred and five Hundred dollars well I think it's a Harder thing to come up with I think it Has to be about other things So on the back side the sale side the Use side if you think you might want Smaller increments for small needs 25 Needs well silver is your obvious go-to If you're trying to cover large needs Only two thousand dollars or more at a Time well it's gold and I think that It's as simple as that and that's why I Think that it doesn't make sense to say That you should only buy one metal or The other because probably everybody has A potential use case in both categories Now that doesn't mean that you need both We're going to come back to that in a Minute As for silver being poised to outperform Gold we sure hear that a lot around here Well I can't see into the future so who Knows but we can see into the past we Can see that gold is the stronger Performance now some might say that Lagging past performance means that Silver is due for a run maybe because It's currently nowhere near its all-time High well that means it has more room to Climb again who knows anything's

Possible Now I've never thought of physical Precious metals as growth Investments I Expect them to appreciate but I don't See them the way that I see other Investments so anytime that I hear a Silver bug say to buy silver rather than Gold because it has more potential I Can't get past the idea that misery Loves company anyone telling you about Silver's potential they are looking at It as a growth investment at least to Some extent and it just has not Performed like that over time I don't Think that's the right approach we also Hear it from people who sell silver but We're not going to get into that now if A person is telling you to buy silver Because you need it for trades you need To buy your bread in a bad fantasy Future well that's something else that's Wanting alternative assets for small Needs and regardless of whether a future Like that will ever materialize that's Simply about practical planning you just Need to determine if you think that There's a probable need for that If your primary goal here is to protect Long-term wealth well I think that You're on a better track with precious Metals if that's your primary use case It really comes down to how much you Want to spend at a time you want to Spend a little you don't mind a higher

Premium for that convenience you go with Silver if you want the tier one asset That's more recognizable as a store of Wealth you go with gold and if I sound Like I'm showing a bias there by saying It like that well it isn't a bias it's Just a preference and that's based on What I'm trying to do personally I'd be Suspicious though of anyone telling you That you can't do both personally I Don't think that they're different tools For different jobs more than It's Different Strokes for different folks Now I said I would come back to Silver Maybe needing both I have a small amount Of silver I think that that covers that Potential emergency need but I also have Cash and I think that that's an easier Way to cover small needs I have other Things I could trade if it came to it so Really I just don't want to pay the Current premiums for silver now that Changes in the future I'll probably buy Silver again too Now if you're looking at the two and You're just wondering which has more Potential well really that's up to you Your guess is as good as anyone's I know Of plenty of opinions but I don't know Of any facts that show that one is going To break out relative to the other it Makes more sense to go with the one that Fits any relevant situation to you if That means one it means the other maybe

It means both That's your answer now if you're coming Here for an opinion well should be Pretty clear which one I buy I haven't Been excited about silver since Maybe 2014 I am focused primarily on Gold but it's not about some kind of Bias it's just about my own personal use Cases everybody has a different Situation so hit us up in the comments Let us know what you think which one's Best for you maybe it's both let us know And then while you're there be sure to Hit the like button if you found any of This interesting be sure you're Subscribed with notifications turned on If you'd like to see more on the topic And if you're still here Thanks again for watching I always Appreciate your time Take care