Step 2c: Gold vs. Silver

The Advantages of Owning Gold

The Bigger Picture – Gold as a Safe Haven

Those practical considerations are the key to another important reason why some investors choose gold over silver. Central banks and large institutional investors often use gold as a store of wealth and for financial diversification and stability. There are many who believe that in a serious financial crisis, similar to – or worse than – what we saw in 2008, gold could become the chosen monetary instrument.

This is because for thousands of years, gold has proven to be a reliable store of value and, when held by its owner in physical form, is one of the few monetary instruments which carries no counterparty risk. Under such a scenario, the stampede into gold would drive its price through the roof, leaving pretty much every other investment – including silver – in the dust.