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Brvtvs

Brvtvs

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Submitted 216 days ago...

Bazmak

Bazmak

Authority (198)

Is silver going to be worth more than gold?

I have seen a lot of info about silver prices rising, will it ever be worth more than gold?

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Answer 1 / 7 - Submitted 216 days ago...

Kataclysm

Kataclysm

Beginner (27)

This is purely speculation, but value of precious metals is based upon their scarcity and trade value. Historically, silver has never been valued more than gold, as gold is much rarer and harder to come by. However, should a large enough amount of gold be discovered that silver becomes more scarce, or should a use exclusive to silver be discovered to be extremely valuable, then Silver possibly might become more valuable.

As it stands, however, silver is the 'poor mans' investment material, and will likely never be valued more than gold.

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Answer 2 / 7 - Submitted 214 days ago...

Melbournian

Melbournian

Brain (2,829)

This is a simple case of economics - supply and demand. Gold is rarer in Earth than silver, and so its price is high. There are certain scenarios which could reverse this:
-If a huge gold asteroid hits earth, or there are huge quantities of gold found somewhere, its price will drop
-If silver starts getting rarer because everyone's got it in their electronics, that could also potentially bring silver's price to above gold's.

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Answer 3 / 7 - Submitted 214 days ago...

scheng1

scheng1

Professor (1,596)

Silver can never cost more than gold. The reason is that governments keep gold, but not silver.
However, in term of investment value, silver is better than gold.
A dollar increase in the price of silver means a very good profit, but $10 increase in the price of gold is very little in term of percentage.

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Answer 4 / 7 - Submitted 214 days ago...

Brvtvs

Brvtvs

Authority (489)

According to the U.S. Geological Survey, silver is about 17.5 times more abundant than gold in the Earth's crust (.07 to .004 ppm, respectively). As a result, the silver-to-gold ratio has always favored gold, meaning that 1 ounce of gold is equivalent in value to between 30 and 60 ounces of silver as price fluctuations have been plotted over time. There have been periods when the ratio has veered below 30 and above 60, but the overall trendline since 1900 has shown gold rising in value faster than silver.

However, this is in large part because gold is perceived as a stronger store of value against currency devaluation. For now at least, perception is reality. But I suspect silver has some catching up to do. The main factor is that whereas gold is mostly stockpiled, silver is an industrial metal and thus gets used up, meaning its abundance relative to gold will not always be true (or as true).

I can't imagine a scenario where silver would ever be more valuable than gold, but the silver-to-gold ratio could definitely deflate considerably, giving silver a big boost in value.


This answer was edited by Brvtvs 148 days ago.

Reason: typo

 
Answer 5 / 7 - Submitted 214 days ago...

Squidley

Squidley

Brain (3,000)

I was going to mention the fact that there is reportedly 17 times more silver in the world then there is gold but spotted the above answer including this fact. Given the fact that there is more silver available on this planet makes it highly unlikely that the metal's value will ever match or surpass that of gold bullion unless the actual demand for silver exceeds that of gold which it is unlikely to do at this time or in the near future.

Both precious metals have industrial uses and are sought after as items for barter or the exchange of goods with gold far out front in this regard with investment in gold in the form of bullion, wafers, coins and even decoration in higher demand than silver. The only way that the price of silver can approach or pass that of gold is for a quantum leap in the demand for silver. Silver is expected to increase in value and price but there is no way it will get close to the value of gold.

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Answer 6 / 7 - Submitted 214 days ago...

Tessor

Tessor

Professor (1,640)

It's very unlikely that silver will ever be worth more than gold due to the extreme variation in scarcity. While valuable, silver is far less scarce than gold. On the other hand, you can't rule it out completely.

Recently, gold surpassed the value of platinum for the first time in recent history. Platinum is a more scarce and ordinarily more valuable metal than gold. Yet, gold still managed to leap over it due to its enormous surge as a popular investing store of value.

The best policy is to diversify the cash you put into precious metals. Own plenty of silver, a moderate amount of gold, and a little platinum. Palladium is a nice fit for the average portfolio too. Own physical bullion as well as stocks like mining shares. This will keep you well positioned to benefit from the across the board gains of precious metals. Going forward, it looks like metals have plenty of growth potential, so buying in now is a smart move.

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Answer 7 / 7 - Submitted 212 days ago...

IK4RM4

IK4RM4

Beginner (59)

Silver is more abundant than gold on earth so silver will never worth more than gold unless someone finds a use for silver that increases its demand by a great deal and that would still be a maybe

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