Back to home

Gold or Silver: What are the Differences?

Gold or Silver: What are the Differences?
Market Insights
Raghda Ahmed

February 2, 2023

Gold and silver are both considered to be precious metals. They form naturally in the earth’s crust. However, their occurrence is rare, a thing that sets these lucrative metals apart from others. When it comes to saving, both gold and silver are some of the top choices. They have striking features, making them highly valuable and worth your financial value. Choosing between gold and silver might not be easy sometimes, so you should be aware of the four differences between gold and silver in order to make a wise decision. 

Here, we will list the main four distinctions you need to know about gold vs silver, especially when it comes to the saving implications of both metals. 

The Price of Gold is Less Volatile

The price of gold is comparatively more stable than that of silver.

Over the past decade, the gold price has changed by an average of 0.8% per day as compared to 1.4% for silver.

This is because gold has a larger market and ever-increasing sales and demand. Silver, on the other hand, has a smaller market and lower market liquidity, resulting in high volatility.

As an investor, the high volatility of silver can be your ally. History shows that silver has risen more than gold in bull markets (upward market trend) but dropped much further than gold in bear markets (downward market trend).

For instance, statistics from 2008 – 2011 show that the gain from gold amounts to 166% while it is 448% from silver. So, if you buy silver in the bear market, it will be sold off at an exuberant rate when the bull rate is at its peak. That said, gold, being less volatile, tends to fall less than silver in bull markets, proving to be a more profitable investment.  So, if you buy silver at the end of a bear market, you can sell it at a high price and thus make a big profit as the bull market peaks. That said, gold tends to fall less than silver in bear markets, which makes it a comparatively more stable saving asset.

Silver is More Cost-Effective

Despite sharing many characteristics with gold, silver is definitely more affordable. If you decide to save in physical silver, you get a hard, tangible asset just like gold. Unlike paper money, it can’t be created by cutting down trees, so it is still a scarce metal. Clearly, silver offers advantages similar to gold, which is why it is often called ‘poor man’s gold.’ 

Needless to say that Gold is more expensive than silver. Gold is by far the rarest metal. In 2019, only 3,300 tons of gold were mined worldwide, compared to 27,000 tons of silver, according to the US Geological Survey.

Bottom line, Silver will be a great option, If you have no big saving plans. It can come in handy for small purchases such as buying a new mobile phone or spending on travel expenses.

Gold Demands Less Storage Space

Another prominent difference between gold and silver is that silver requires a lot of storage space.

At present value, you can get over 80 ounces more of silver than gold when bought at the same dollar value, which means more space will be needed to store the silver.

Furthermore, every metal has a unique composition, and the same is true for silver and gold. Compared to silver, gold is heavier. Gold has a density of 19.32 g/cm3 while silver has a density of 10.49 g/cm3. This is why a few bars of gold may feel denser than that of silver.


However, they will require a smaller space for storage. It will also be conveniently easier to store some gold coins in a small safe box but impractical for the equivalent of saving the value in silver. 

The point is, whether you buy coins or bars, gold will always need less storage space but will weigh heavier than silver.

The Value of Silver is More Dependent on the Economy

 Silver is usually more demanded by the industrial sector. The precious metal is utilized in almost every electrical appliance, such as washing machines, refrigerators, and vacuum cleaners – to name a few. There’s also a growing use of silver in the medical field, as silver has antibacterial properties. Some other popular applications of silver include use in water purifications, maintaining food hygiene, wood preservatives, etc. Considering this, the price of silver can be impacted by the boom or bust of the state’s economy. On the other hand, gold has limited industrial uses, and therefore, its price is less driven by the global economy.

As a sensible investor, you should realize that investing in silver can be slightly unpredictable because its fate is susceptible to the economic cycle. The stronger the economy, the more in-demand silver is, while the poorer the economy, the less demand silver has. However, the same can’t be said about gold. 

Gold bars

So, should I Invest in Gold or Silver? 

An ideal investor’s portfolio features precious metals, including both silver and gold. If you’re blessed with financial freedom, stability, or support, purchasing both metals can be a great decision. These valuable metals can come in handy in different situations in your daily life. For example, you can sell your gold someday to buy a car or any other expensive commodity, while silver can be used to cover the cost of daily items such as groceries and likes. 

When it comes to choosing between gold and silver, you can never go wrong with gold. This is because, unlike silver, gold faces fewer price fluctuations. The price of silver can be less predictable; however, it remains a great on-budget option.

Additionally, silver has more or less the same features as gold. So, by investing in silver, you can also reap some of the benefits that are typically expected from gold. 

Explore our portfolio of gold and silver.