This is a semi-predictable speculative asset that can make you earn real money. Buy gold if you invest for when times are bad. Both silver and gold can function as safe haven assets, but gold tends to have a better track record over longer periods of time. That said, in shorter periods, the specific dynamics of each market end up being more important for their respective returns.
Regardless of the asset you buy, remember that neither asset generates cash flow, so the best thing for long-term investors would be to take a buy-and-hold approach with a profitable and growing portfolio of stocks. Therefore, silver is ideal for investors with small budgets and also for any small financial need that may arise in the future. Gold is more suitable for larger purchases. Gold is a safe asset, says Mahesh Agrawal, deputy director of specialized solutions at Acuity Knowledge Partners, a business intelligence provider.
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. And some people still do, but instead of burying gold ingots in their backyard, they buy stocks or mutual funds that invest in gold. Well, it basically means that on a bad day when markets go down, the price of silver may fall more than the price of gold. There aren't many times when you can take a bag of gold chains to the gas station and exchange it for a gas tank.
However, it must be noted that, under circumstances as serious as these, governments and central bankers are likely to institute highly inflationary policies to keep the economy afloat, the same policies that would serve as a launching pad for silver due to their status as a safe haven. It's relatively easy to hide some gold coins in a sock drawer or cookie jar, but those same hiding places aren't practical for the same investment in silver. This scenario may or may not develop, but it is a delicate position that could have a profound and immediate impact on the silver market. But if you just want to buy food or a new mobile phone, you can sell some silver to cover the cost of those items at that time, without having to liquidate your gold.
Mining stocks make it possible to leverage the price of gold or silver, so a profitable miner will be much more profitable as the price of metals rises. But if you're willing to bet (and potentially benefit from) the rise in the price of silver due to rising industrial demand, buy silver ingots or coins. The main reason why governments don't have a lot of money is because it's no longer used in currencies. While short-term fluctuations in the price of gold tend to receive a lot of attention, gold is relatively stable as a long-term investment compared to 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.