Should I buy gold or silver?
Should I buy gold or silver? This is a question that is best answered by looking at the present gold and silver markets. What you need to remember when investing your money, is that the reason for an investment is to obtain the best return on investment as possible.
The Gold Prices Today is currently at $1,539.10 at the close on May 30, 2011. In the past 60 days the price of gold has risen from just under $1440 to its current level which is nearly a $100 increase. That sounds wonderful but there is a catch. To earn that $100, you must have invested $1440 to begin with. That is about a 14% return on your investment.
Now on to silver, at the close on May 30, 2011 the price per ounce of silver was at $38.07. In the past 60 days the price of silver has risen from $35.00 an ounce. That is a net gain of only $3.00. That is only a 7.8% return on investment.
A clearer picture is made when comparing the amount of your investment and its return on investment. The main difference between the two is not really clear when comparing the return on investment per ounce of precious metals. If $1400 was invested in gold 60 days ago you made $100 and owned one ounce of gold.
If that same $1440 was invested in silver you would own 37.83 ounces of silver. You would also have a return on your investment of $113.48.
It is true that gold is more valuable than silver on the market, but you can make more money investing in silver in the current market conditions.
This makes the answer to the question should I buy gold or silver rather clear. Silver will make you a better return on your investment and that is the real reason you invest, it is to make money.
Tags: gold, investing, money, return on investment, Silver
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