Is Saving In Silver Better Than Saving In Gold ?


wealthymatters.comSilver is the poorer cousin of gold and shows more volatility.However it is also considered a precious metal.So how does it compare to gold as a savings/investment?Where would you be today if you had bought and held silver for the last three decades?Follow this link to your answer :Long Term Returns From Silver Vs SENSEX

So silver would have given you marginally better returns.However you would have had to stomach its greater volatility.And worrying for 30 years just doesn’t seem worthwhile.

Also like gold, silver returns adjusted for inflation are pretty underwhelming and gets beaten by equity returns by a big margin .And in times of negative real returns silver like gold shoots up in price.

How Well Would You Have Done if You Had All Your Savings In Gold?


wealthymatters.comToday financial planners and daily wage earners speak of ” investing” in gold.In fact,given the dream run of gold in the last decade,most people can’t see past gold.Never mind that between last Diwali and this one there was no substantial increase in the price of the metal and that there was a fall in price in between and then it struggled to rise for a while.

There is no denying that in the dark days after the stock crash of 2008 and the poor economy thereafter, gold provided good comfort for all of us who worried about our financial health.And the fact that gold price rose fantastically in uncertain times was the icing on the cake.

Also gold has helped us hedge against inflation.Here is the link to an older post.

Gold also does superbly well when the equity markets and debt markets are giving negative real returns.

So should you just have all your savings and investments in gold?Far from it!Aside from the wealth tax you might be forced to pay every year on an asset that will give no returns till it is sold, at which point it might attract capital gains tax,keeping your money in gold over the last three decades wouldn’t have given you stellar returns.Check out the chart here:Long Term Returns from Gold Vs SENSEX While gold keeps up with inflation,just buying and holding it for long is unlikely to make you rich any time soon.So be certain to enjoy the touch and feel and beauty of your gold.

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