Many say that the most decisive factor of gold price volatility is global monetary policy such as interest rates and inflation rate. While silver is determined by industrial demand. This is the key difference between the two types of investment such as the gold bars and the best silver coins to buy for investment.
The amount of silver market in the futures market can also trigger the movement of gold market price. Take for example what happens in Commodity Exchange (Comex). When compared with the gold market, of course, that is not how. This condition results in the rate of silver price movement can be three times faster than the rate of movement of gold prices.
Sometimes this condition makes silver traders more have many risks, especially if playing on derivative investment instruments such as futures contracts. As a much-chosen alternative, silver traders must prepare sufficient capital to keep up with market prices in order not to lose money.
Between Gold and Silver, Which is Higher Demand?
In fact, when it comes to market demand, silver is superior to gold. The reason is obvious because gold is not so needed for the industrial sector. In fact, when looking at global statistics, demand for gold as jewelry tends to decline.
Nevertheless, gold has a high control so that the price movement can be good. Factors driving the price movement of gold closely related to monetary policy or global economic conditions.
On the other hand, silver is needed in many industrial sectors because silver has strong properties and is easily shaped. Silver is often used as a jewelry and even used as a staple in various electrical industries because of its nature as a conductor. This is what makes the silver demand so high.
Both Become a Promising Investment Solution
Judging from its advantages and disadvantages, gold or silver becomes one of the promising investment solutions. Both can be an alternative to a balancing investment portfolio. Gold prices tend to rise. However, the demand is relative, not as much as silver. This could be a separate consideration for investors before deciding to invest.