If you want to protect yourself against possible inflation or even hyperinflation, you clearly invest your savings in precious metals. Here, however, the question arises whether it is better to buy gold or silver. Most people swear by gold as an investment, it is stable in value and can make great leaps in terms of value growth, as it has shown in the past. Nevertheless, is gold always the best alternative?
Advantages of gold
Anyone faced with the question of whether to buy gold or silver should take a closer look at the advantages of the two precious metals. Gold of course has a special flair – whoever buys gold buys a certain prestige at the same time. In German-speaking countries, the purchase of gold also offers the advantage that no value-added tax is charged on it. For silver, on the other hand, seven percent VAT must be paid on coins and even 19 percent VAT on bars. In Austria it is even the full 20 percent.
Gold also offers the advantage that the coins have a higher overall value. Just a few kilograms of gold can represent a large fortune. This makes physical gold much easier to store than silver. In addition, the minting premium for coins made of gold is much lower than for silver. The minting premium describes abei the surcharge of the coin to the pure material value.
Advantages of silver
But in the question of whether to buy gold or silver, it is also crucial what advantages the precious metal silver brings with it. Here, especially the coins are useful in the event of strong inflation. If this should come, then large investments can be made with gold. However, the bread at the bakery, the sausage from the butcher or even other food and products of daily use can be paid with a gold coin only with difficulty. Especially when money is so devalued that it can no longer be used as a means of payment, precious metals become very important. Here, silver coins of one ounce are the best choice to be able to finance daily needs.
A look into the past also shows that the choice whether to buy gold or silver is influenced by legal prohibitions. In the past, private ownership of gold was sometimes banned. This was never the case with silver. However, such a scenario is rather unlikely today and, accordingly, is no longer too powerful an argument.
Buying gold or silver – also a question of money
Last but not least, it is a question of money whether you can buy gold or silver. The pure material price is much higher for gold than for silver. Accordingly, the same amount of gold costs much more than silver. So, if you have only smaller reserves, you can only decide to buy silver anyway.
Also, the current valuation of precious metals should be taken into account. Silver is currently considered undervalued and could thus bring enormous increases in value.