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An advantage of buying either gold or silver bars/coins is that you would own an asset that can increase in value as time goes on. Additionally, you would own an asset that can be stored outside the financial system, which reduces the default risk that companies carry. Default risk is the risk that the other party in an agreement will default or fail to live up to its obligations. Such is the case when you invest in gold through ETFs (gold exchange-traded funds). Suffice to say, buying physical gold/silver is the better option.

This leads us to the predominant question, should you invest in gold or silver?

Short answer: Gold

Long answer: While both gold and silver have appealing features, gold is the overall better investment for an investor. Gold has a much larger liquid market that is driven mostly by investment and jewelry demand. The price of gold is less volatile than that of silver, too.

Meanwhile, silver is a bit more speculative and has a stronger relationship to economic activity then gold typically has. This is because silver has many industrial uses. Because of this, for example, silver can be attractive during low point cycles when the price of the metal is cheap. The key advantage of silver is that it’s much cheaper than gold. Therefore, it’s more accessible to small investors.