Gold, Silver

Is Silver the New Gold?

Gold has been the most revered and valued metal of all times. People have been buying gold for weddings, religious events, festivals, and investing purposes. But during the past few years, the demand for silver is rising at a faster rate compared to gold. This has led to investors question if silver is the new gold. Here in this article, we have discussed the reasons why silver may be the new gold and how investors can invest their money in silver as a digital asset. 

Why Has Gold been So Valuable?

Gold has always held a special place in the hearts and lockers of people around the world. They have been investing a big chunk of their money in gold. We also see gold recording its new set of high prices every time. You may think about the reasons why gold has held so much value in the world. Here are some of the reasons. 

  • Gold holds two different meanings in itself. It is quantitative as well as qualitative. People spend their money on gold for investment purposes and to experience different types of emotions. 
  • Gold is a noble metal and is used for a number of purposes. It is easy to mold and works with, to create coins, jewelry, and things of religious importance. 

Also Read: How to identify fake and real gold?

  • There is a unique kind of shine exhibited by gold, which makes it one of a kind metal. Its ability to absorb light and shine makes it admired by everyone. 
  • Gold is a sustainable mode of exchange. In case of disasters, paper-based money can become useless and the system of paper-based exchange can also become non-existence. In these times, gold as a precious metal holds the same value and acts as an effective method of exchange. 

Why is Silver the New Gold?

You may now wonder why silver is experiencing such a high demand despite gold being the more valuable metal than silver. What’s driving the growth of this precious metal so much that the prices have hit their record highs? Here are the reasons why silver is the new gold. 

Importance of Silver to China

China has had a silver standard for more than 2000 years now. The country is trying to diversify its risk from having its reserves in the form of US Dollars and denominations dominated by the US Dollar. So, they began changing their port of reserves to gold firstly, and then to euros. Rumors have it that China will be soon retreating to silver to solve its diversification purposes. This clearly showcases the increasing potential of silver over gold. 

Dual Demand of Silver: Is Silver the New Gold?

Silver has various other uses in the industries when compared to gold. When this demand is coupled with the demand for silver in the investment market, the demand and prices of silver increase against a limited supply of this precious metal. 

Negative Interest Rates

The interest rates for traditional assets like stocks, fixed deposits, etc. have reduced significantly. Thus, people are unable to earn positive interest in their savings and hence, invest their money in buying precious metals. But gold rates are very high and not all investors can afford to invest their money in gold. In addition to this, the silver to gold ratio is very high, that is, the investors can buy more silver as compared to the amount of gold for the same money. This has created a considerable surge in the silver demand and hence, higher prices. 

High Silver to Gold Ratio: Is Silver the New Gold?

The ratio of the amount of silver which is equivalent to gold has hit its record highs in the last five years going up to over 80:1. This value is far higher than the average value hovers around 40:1 or lower. Consequently, investors have started accumulating silver, creating a greater demand thereby. An increase in demand for silver instead of gold is one of the greatest reasons why silver can be the new gold in the coming years. 

How to Buy Silver on OroPocket?

There are numerous ways of buying silver, that is, in the form of jewelry, coins, utensils, etc. However, if you are buying silver for investment purposes, the best way to buy silver is digital silver. There are several platforms like OroPocket where you can buy digital gold and silver easily with as low an amount of money as Rs. 1. There are many benefits of buying silver digitally. Firstly, you don’t have to go out of your home to buy silver. Secondly, you don’t need to worry about the safety of your assets. Thirdly, you can easily get your digital silver converted into physical form and get it delivered to your doorstep. Moreover, you can start investing in digital gold with OroPocket in a matter of just five minutes. Isn’t that just great?

Now let’s see how you can buy digital silver on OroPocket.

  1. Start by downloading the mobile application of OroPocket on your phone. 
  2. Create a new account and enter some quick information about you to let us know you better.
  3. Select the amount of silver that you wish to buy or enter the money that you want to invest. 
  4. Add your preferred method of payment from the available options like UPI, debit card, credit card, or net banking. 
  5. Complete the payment of your digital silver and you are done! 

If you like, you can buy a Silver Auto-invest Plan on OroPocket where you can invest in a particular amount of silver at regular intervals of time like daily, weekly, monthly, and so on. This is the best way to start investing in precious metals in small amounts and accumulate silver over a long time. 

Conclusion: Is Silver the New Gold?

If you are thinking about buying silver as an investment asset, it is going to be a great choice as the prices of silver are expected to rise further in the coming years. In addition to this, the quick replacement of paper-based money transactions with digital payments can open more avenues for transactions based on silver and gold. This will result in silver becoming the future money.