There has been a lot of investor interest in gold recently, but we think that gold has outlived its usefulness, and that silver is now a much better bet. Anyone who has been paying attention to the commodities markets over the last few years is probably well aware that the price of gold has been hitting record highs, not just once, but multiple times over the last few years. We are now in the third quarter of 2010, and gold has hit record highs multiple times since late 2009. This is unusual behaviour for any single commodity, and it is not likely to last, especially because of the unique characteristics that gold has – namely, its already high price to begin with. There is only so much that the price of gold can rise before demand for the commodity will fall.
Silver, on the other hand, has much more room to grow. It is starting from a much lower base price, and can therefore expand by a factor of several hundred more times than gold before investors begin to lose interest. In particular, it is important to note that the prices of gold and silver can sometimes move in lock step, as has been happening recently. Silver, too, has been hitting record highs over the last few months.
This is interesting, because it signifies that silver is a much better investment opportunity than gold. If you were lucky enough to get on the gold train and purchase large quantities of the metal prior to the meteoric rise in price, then you should probably sell it now, as the price is likely to go down soon – experts are calling current gold price levels “unsustainable” and predicting an inevitable drop. Silver, on the other hand, continues to grow – not just the price of the metal itself, but also consumer goods, such as sterling silverware. However, do not take our word for it – do some research, read a silver FAQ, and decide for yourself.