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The Value of Your Investment: Silver vs. Gold

From being coveted as the cultural cornerstones of currency to being lauded as luxuriously-laden gemstone jewelry, both silver and gold have a rich history of admiration. Thus, there’s little doubt as to why one would want to add these metals to their investment portfolio.

That being said, if you’re new to the market and the process of purchasing precious metals, you may still be wondering how, exactly, the value of these two appreciate over time.

Allow us to shed a little light on the matter before you put your money on the table… 

Precious Metals, Precious Decisions

Previously, we’ve waxed poetic about the resilience of silver. Known for withstanding recessions that usher in harrowing periods of inflation and general financial instability, silver makes for a wise investment should the economy begin to appear more precarious than one would like. After all, during a recession or depression, the price of this mesmerizing metal won’t only remain stable — but its overall market value is actually likely to increase.

Gold functions similarly to that of silver in that its value may be greatly determined by factors outside of the general jewelry industry, such as financial instability, war, and more. The value of gold, however, is less volatile in nature than that of silver due to the fact that gold is both larger in supply and generally higher in pricepoint. Thus, it is rendered more vulnerable to sentiment than it is to the whims of supply and demand.

Battling Between Bull and Bear

Of course, the matter of investment is not only one of your budget, but one of the overall context of the market. That is, which state is the economy in: A bear market or a bull market?

In layman’s terms, a bull market is characterized by a stable economy that sees a market trend on the rise, whereas a bear market occurs when the market falls and destabilizes the overall economy. The reason this is important is that the two markets can influence the average prices of precious metals, thereby impacting the potential outlook on your investment of choice.

For example, “Gold shines when stocks are in a bear market, for safe-haven reasons, and that’s why market strategists recommend a small holding in all market cycles,” according to U.S. News & World Report. The value of silver, on the other hand, is apt to rise at a much faster pace in comparison to gold in the midst of a bull market.

When the Price is Right

At the end of the day, we’re not here to say that either gold or silver is most likely to appreciate in value over time. After all, the prices of the two are not likely to remain the same from one day to the next, let alone over the span of years wherein bull and bear markets will rise and fall periodically.

In any case, silver and gold both make for valuable investments if you’re searching for tangible goods to have on hand in the event of an unstable economy.

Of course, if you’d prefer cash, Hemming Jewelers can help you with that, too! After all, as Jacksonville’s #1 independent custom jeweler, our specialty does not start and end with selling gold pieces — but we’ll also buy your unwanted gold for cash!

To learn more about our gold buying services or our extensive collection of new and consignment jewelry, contact Hemming Jewelers today. We have been proudly serving Jacksonville since 2003, so don’t forget to visit us at the corner of Monroe and Hogan or call us today at (904) 354-5959!