Silver is more volatile, cheaper and more closely linked to the industrial economy. Gold is more expensive and better for diversifying your overall portfolio. One or both of them may have a place in your wallet. Arguably, the best use of gold as an investment is to mitigate portfolio risk.
Since our founding in 1935, Morgan Stanley has always offered first-class business in a first-class manner. Everything we do is based on five core values. Gold and silver prices tend to move in the same direction, but gold is a better hedge against the recession. The price of gold is inherently more stable because demand will not increase dramatically and that is why a gold standard would be preferable to a silver standard.
The commonly accepted reasons why gold is more expensive than silver, despite its relative abundance, are that gold is used more in jewelry, gold is considered more of an “alternative currency” than silver, and central banks and individual investors demand it more than silver. Not only is gold worth significantly more per ounce than silver, but it's also the denser of the two metals, making a specific volume of gold worth much more than an equal volume of silver. Of course, gold also has some industrial uses, phone chips have some gold in them, for example, but the potential for increased demand for silver is much greater. While gold and silver have similar boom-bust cycles, there are some key differences to consider when deciding whether to invest in gold or not.
As expected, gold has had to surpass its previous highs for people to realize that, basically, gold and silver will rise a lot. The prices of gold and silver move significantly from year to year, so the best way to get a general measurement of the prices of these metals is to consult the semi-long-term charts.