Gold and silver Has done the work of making investors rich. In 2024, gold gave a great return of 21 per cent. Silver also gave 19.66% return. This year too, the price of gold and silver continues to rise. Let us tell you that in the last 12 months, gold has risen more than 40%, while silver has increased by about 34%. Now the question arises that if any investment wants to invest for 5, 10 or 20 years, then which one should invest in gold or silver? Who can give more returns between these two? If you are also looking for answers to these questions, then we answer you.
Why the price of gold and silver is increasing?
Commodity experts say that many factores are working behind the increase in gold and silver prices. There is still a situation of upheaval worldwide. Russia and Ukraine are not taking the name of the war. Whenever there is instability in the world, gold is the first choice of investors as a safe investment. Therefore, the demand for gold remains continuously. At the same time, central banks from all over the world are also shopping for gold. The price of gold is also increasing continuously. At the same time, two big factors are being cited if the price of silver increases. First, an increase in industrial activity. And second, increasing interest in silver as investment option. The silver market is relatively small, which has an annual turnover of about 30 billion dollars. And this is why minor changes in supply have a big impact on demand and price. Increasing demand for silver from green technologies in the industrial sector, with limited supply increase, makes silver a favorable option in rapidly developing economic scenario. Therefore, the price of silver has increased.
Where would it be better to invest?
If we look at the gold-silver ratio, a metric comparing gold and silver used to be 70: 1 in the 1980s. Today, the ratio is close to 91: 1 as gold is about $ 3,030 and silver is trading at about $ 33. This means that silver is still less evaluated and has some space to cover it. Either the price of silver increases rapidly or the price of gold falls or the ratio remains stable to bring its long -term average close to 70: 1. Now the question arises that where will it be more right to invest for 5, 10 or 20 years? Experts in the bullion market say that gold or silver must become part of the portfolio in the long term. Both these precious metals have always given great returns to their investors in the long term. Yes, it is difficult to say who will give better returns in both of them. Therefore, to balance your portfolio, at least 10% should invest in gold and silver. If you want safe investment then invest in gold.
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