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Gold or Silver: Where should you place your bets?

Gold vs Silver: Gold offers stability and security; silver’s volatility can lead to higher returns.

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Historical Performance: Gold’s 45-year CAGR is 5.27%, while silver’s is 3.55%. Gold shows steadier growth compared to silver's volatility.

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Recent Returns: Gold's annualised return is 23.7% in the past year; silver's is 30.7%. Over 5 years, gold returned 75.9%, silver 93.0%.

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Long-Term Trends: Gold’s 10-year return is 126.2% with an annualised return of 8.5%. Silver’s is 40.7% with a 3.5% return.

Source: Pexels

5. Economic Sensitivity: Silver is an industrial commodity with prices tied to economic cycles; gold is less affected by economic downturns.

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Risk vs Reward: Silver’s higher volatility can lead to greater returns but also comes with higher risk compared to gold's stability.

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Diversification: Gold is a safe-haven asset and helps diversify investment portfolios, unlike silver which is influenced by industrial demand.

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Accessibility: Silver is more affordable per ounce than gold, making it more accessible for retail investors but requires more storage.

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Liquidity & Storage: Gold has higher liquidity due to broader demand; silver’s storage can be costly due to tarnishing and bulk.

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Investment Options: Both metals can be invested in through ETFs, mining stocks, or physical assets. Technological advancements are enhancing access to these investments.

Source: Pexels