You’re in the mood for buying some precious metals. A dealer has two options in your price range, a small gold ingot which he’ll sell for bullion price, or a large bar of silver, also at bullion price. Both cost $100. Which do you take?
Probably the gold. In fact, if I had to guess, most people would take the gold. So how come they’re the same price? And how much is silver really worth?
Filed under: Economics
I heard silver is a good investment, because it is cheaper than gold and is a low risk high reward precious metal. But gold is obviously the real prize in a economy that is tanking. I’d go with a combination of the two, but sink a little more cash into silver right now than gold, because you can buy more with the hope that it will increase quite a bit in the next 12-24 months.
I seem to remember that the Hunt brothers cornered the silver market years ago and this tanked the price and made it very un-attractive… but I’m not sure and I won’t wiki it.