The Price of Silver is More Volatile Than That of Gold
The total production of new silver every year is close to one billion ounces, and the annual gold production is currently estimated to be at about 120 million ounces. This makes it seem as if the silver market is eight times larger than the gold market. But this is not the case because of the big difference between their prices. The low price of silver makes the annual production of silver much lower than gold. This explains why the price of silver is more volatile than the price of gold.
Also read: How is Gold Produced?
Trading Silver is More Practical Than Trading Gold
The reason for this is that there are many similarities between gold and silver, with the price of silver being more affordable than that of gold. These are some of the similarities:
- Silver has a value that can go up or down just like gold and currencies.
- Silver can also be invested just like gold. Silver is an asset that you can buy or sell.
Thus, the advantage of silver is that you can trade it with less risk due to its price compared to gold.
Also read: Stages of Refining Gold
Selling Price Difference
Silver is sold at more reasonable prices than gold. You may never want to sell an entire ounce of gold to meet some small financial needs. If you want to buy a car or make any other big purchases, you will often use gold. But if you only want to make small purchases, you can sell a small amount of silver to get a small amount of money that suits your needs and covers the costs.
Also read: General Information About Bronze
Silver Requires More Storage Space
Both the low price of silver and the low density of silver compared to the price and density of gold mean that silver needs more space to store. For example, if you invest fifty thousand dollars in silver and the same amount of money in gold, you will get a quantity of silver that needs ten times more space than that of gold.