Is Gold & Silver a Better Investment Than Cryptocurrencies?

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Gold, silver, and cryptocurrencies are all valuable assets to have in an investor’s portfolio. However, even with diversity in mind, there are certainly arguments for either side that make one a better investment than the other.

Cryptocurrencies are digital marvels – assets backed by various methods. Gold and silver, on the other hand, are tried and true assets. Which is better? We’ll break down the pros and cons of each so you can deduce for yourself.

Gold & Silver

As mentioned, gold and silver have been in the hands of investors for centuries. Both have been used as currency in various time periods, though now they’re generally used as a hedge for an uncertain economy. This means investors are often buying and selling both, which can make either’s price a little unpredictable. Each is used in jewelry and has various other use cases that make them a safe future investment as well.

Let’s break down the pros and cons.

Pros of Investing in Gold & Silver

Gold and silver are each somewhat rare, the former more than the latter. That makes buying gold on a site like Gold Coin a good investment if you can afford lots of it, though the asset price hardly makes significant strides.

Silver, on the other hand, has many price fluctuations. This is due to there being more of the asset, so it’s consistently entering and leaving the market. Silver is also a genuinely solid entry in any portfolio simply because it’s often profitable shortly after it crashes. Other investments might take longer to do so.

Compared to cryptocurrencies, however, gold and silver are significantly more stable in terms of price. Those who want to avoid that level of volatility should feel safe here. It’s hard to go wrong with either of these assets that have been around for so long.

Cons of Investing in Gold & Silver

Depending on your perspective, a lot of the pros listed can also be cons. For example, these assets can be an expensive start to investing. Those who can’t afford the initial entry might not enjoy gold’s relative stability or might purchase silver at the wrong time and lose out.

Some investors might want more volatility to profit faster. While silver and gold both do offer a decent rate of return, it’s generally after some patience.

Also, if you buy silver or gold bullion, many dealers charge premium prices on coins – especially for the latter. That’s not to mention how expensive it can cost to store them. Doing one’s research and buying from the lowest price possible is essential here.

Cryptocurrencies

Cryptocurrencies are touted by many as the future of investing. However, they’re a largely untested space that many long-time investors are reluctant to trust. But there’s no denying the potential for profit here – many have already experienced that.

Let’s break down the pros and cons.

Pros of Investing in Cryptocurrencies

Cryptocurrencies are relatively easy to invest in. Simply create an account on an exchange and buy away with your preferred payment method. There is also a wide variety of them to purchase – you can spend on the ones that interest you most.

Also, cryptocurrencies aren’t controlled by any central authority. There’s no company to worry about. The asset exists on its own, and for some, that’s a massive boon.

Considering cryptocurrencies are so new, many believe there’s nowhere to go but up. If you’re patient, you might see a massive return in the long-term with cryptocurrency. Even short-term traders might profit from volatility if they’re lucky.

Cons of Investing in Cryptocurrencies

These assets are largely unregulated. It’s difficult to calculate taxes and learn how to store them, among other things. Many cryptocurrencies are also scam projects and might cost you more than they’ll earn you.

Volatility is another issue. Assets like Bitcoin have jumped literal thousands in less than 24 hours. For some, that uncertainty is too much, and they’d rather stick to traditional assets.

Plus, with how untested this industry is, it’s also possible all cryptocurrencies will fizzle out in the coming decades. Those adverse to risk might want to stay far away from crypto assets.

Updated October 15, 2020

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