Both gold and silver are great investment options for just about any diversified portfolio. These assets are known to be large stores of value, which often record price growth even in times of poor market conditions and economic uncertainty. Gold stocks are generally more attractive to growth investors than to high-income investors. Gold stocks generally rise and fall with the price of gold, but there are well-managed mining companies that are profitable even when the price of gold falls.
Increases in the price of gold are often increased in gold stock prices. A relatively small rise in the price of gold can result in significant gains in the best gold stocks, and gold stock holders typically get a much higher return on investment (ROI) than owners of physical gold. An important factor to consider is the type of silver supply. In contrast to gold, the majority of freshly mined silver is used for various industrial processes.
As a result, investment demand for silver is likely to exceed available supply in the coming decades. We’ve already seen brief examples of this scenario over the last two years.