A long-standing favorite of precious metals investors, gold has been used as a store of value for thousands of years. Gold is known as an investment that tends to hold its value well during economic slowdowns, and which can ride out major recessions quite well. Gold is also an excellent hedge during periods of high inflation compared to cash investments. While gold is a great investment, the cost of buying significant quantities of gold can be a bit prohibitive for some newer investors.
Silver is a close runner-up to gold in terms of its popularity as a precious metal investment. Silver has the huge advantage of being relatively inexpensive compared to gold, making it easier to get started with a small amount of money and build a portfolio from scratch by making smaller investments periodically over time. Silver's widespread use for industrial purposes, including in the fast-growing solar energy sector, also provides support for the metal's price. Despite its advantages, silver’s lower price compared to other precious metals can present a storage challenge. With an ounce of gold, platinum, or palladium being worth many times more than an ounce of silver, the storage space required for any sum of value in silver will be much larger than that required of the other precious metals.