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Why is Gold More Popular than Silver and Platinum Featured Post

Precious metals have always been a popular investment for individuals as well as investors. Gold remains the most popular investment of all precious metals.

Are you wondering whether to invest in gold, silver or platinum? Well, most investors prefer to invest in gold than platinum and silver, because gold bullion offers strong protection against economic slowdowns. During uncertain economic times or times of market busts, gold bullion bars are preferred, as silver is considered more of a speculative investment, but it can return substantial profits.  Gold investment is a more preferred option for investors looking for investment in precious metals as a hedge against inflation.

Gold vs Silver

  • While the price of silver fluctuates more with the market trend or economic activity, the price of gold will not be much influenced, because gold has fewer industrial uses than silver or platinum.  About 80% of platinum demand is from industrial sector.
  • Silver investment does not offer the same ROI or value for money as gold investment does.
  • Level of security or insurance protection offered by gold bullion is more than silver bullion.
  • Silver investment is a riskier proposition compared to that of gold because of the high level of volatility. The best investment time in silver bullion is when its price is consistent and stable.
  • Silver coins and bars are not exempt from VAT, unlike gold, in the UK, which means any physical trading of silver attracts VAT. It is recommended to hold silver for at least a year to recover the VAT value before you plan to sell it. Contrarily, gold is a great short-term investment, depending on the price in the market.

So if you decide to investing in gold, consider some important factors, such as source of investment, value of investment, product premiums, type of investment, and Capital Gains Tax, to determine whether you should invest in bars or coins. Gold investment offers a lot of flexibility and is a safer haven in the ongoing volatile market than silver or platinum. Thus gold is more popular as an investment alternative than silver or platinum.