Silver vs Gold Jewelry in the Philippines: Which is a Better Investment?

Posted by MJ Marketing on

Smart investors are always torn between silver and gold jewelry in the Philippines. Both precious metals have impressive benefits besides its beautiful aesthetic appearance. It might be tempting to fill your jewelry box or vault with silver necklaces, gold wedding rings, silver bracelets, or gold engagement rings. After all, the more diversified your portfolio is, the better.

But which is better? Where should your money go more? Gold or silver? Let us find out in this article the key differences between the two precious metals.

The volatile price of silver

If we compare the total supply of gold and silver, the latter has more supply. The current supply of gold annually is 120 million ounces, while silver has one billion ounces. However, this is not the barometer that you should consider.

According to CPM Group, the price of the annual gold supply is 12 times larger than silver! Why? In an article from Daily Journal Online, gold is more expensive than silver because of its smaller supply. 

This is the concept behind the Gold/Silver Ratio, which "describes how many ounces of silver it would take to equal one ounce of gold." And for the very first time in history, Nasdaq reported that it hit the highest level in over 5,000 years. In March 2020, it is around 120-to-1. That means gold was 120 times more valuable than silver.

Gold is the best hedge against recessiongold bars philippines

Investopedia defines hedge as an "investment that is made with the intention of reducing the risk of adverse price movements in an asset." It is similar to an insurance policy.  

Although silver has countless industrial uses, it doesn't cope well during the recession or when stocks are down. The price of silver increases when production picks up. But if the demand is low, silver prices lower too.

Unlike goldthat performs better than silver. This was proven during the Great Recession which happened from December 2007 to May 2009. At the time, the S&P 500 had a 37% decline, while gold soared by 24%.

Due to the coronavirus pandemic, we are entering again a recession where many businesses shut down and layoffs reached new heights. It only means one thing for a smart investor: It is the perfect time to invest in gold jewelry in the Philippines.

Silver is not a space-saversilversmith philippines

Believe it or not, silver requires a lot more space than gold. We are talking about pure silver which is 84% larger in volume than pure gold. 

To give you a perfect analogy, you can hold in one hand a gold worth $50,000. But with silver that has the same value, you will need 10 large shoeboxes to "hold" it. Yup, that is the starking difference between gold and silver in terms of size and weight.

Hence, silver is more expensive to store because it needs more space. It is also difficult and costly to transport physical silver compared to gold. Lastly, pure silver tarnishes easily when exposed to harmful elements. You will never experience this with pure gold.

Gold is easy to maintain

Aside from the fact that gold doesn't tarnish quickly, it is more durable and only requires basic care. Gold is scratch-resistant than silver.

As for maintenance, you only need warm, soapy water to clean gold jewelry in the Philippines. On the other hand, since silver jewelry tarnishes easily, it needs to be polished with a silver cleaner from time to time.

Just look at gold wedding rings or gold engagement rings. It stands the test of time, that is why many couples favor this type of metal over silver jewelry when they are about to tie the knot.

If you are interested in buying gold jewelry in the Philippines, then you are in the right place. Meycauayan Jewelries is home for local artisans that can handcraft exquisite engagement rings,  wedding rings and other jewelry pieces valuable for great investments. For inquiries, email us at meycauayanjewelries@gmail.com or call (044) 812 1902. You may also visit our Facebook page to check our latest collection.

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