Gold IRA vs. Silver IRA: Which One Is Better?

If you’ve been thinking of buying gold lately, you’ll notice that the price of gold is holding steady and high.  Over the last 10 years, the price of gold has gone from a few hundred dollars per ounce to nearly $2,000 per ounce late in 2011.  Globally, investors are looking to the price of gold as economic uncertainty continues to grip the world’s major economies.

With this kind of history, it’s tempting to say that in a contest between gold and silver, an investment in gold will produce the better result. If that’s the conclusion you reach, you may want to rethink having a Silver IRA.  While gold is certainly a stellar performer, silver has outperformed gold in terms of investment returns both in the short-term and long-term.

As an investment, silver offers consistently solid investment performance and handsome returns.  As an added benefit, the price of silver is relatively low. It offers the average investor an affordable way to invest in precious metals, and offers an exceptional historical value.

Here are a few cool facts about silver that may help you look at this investment heavyweight in a whole new light!


  • Silver has some unique chemical properties that make it very valuable as an antibacterial agent. Silver has the ability to disrupt a bacterium’s outer membrane and prevent it from replicating. Even better, bacteria do not develop a resistance to silver’s antibacterial properties! Silver also has some health benefits. It can spur the production of new cells, speed healing and help regrow bone.
  • The notion of the “silver spoon” has come to refer to a family history of wealth, but the phrase is actually about health. Children who ate with silver utensils (often found in wealthier households) were thought to be healthier than those who did not.  Given silver’s antibacterial properties, this might just be true!
  • Argentina takes its name from “Argentum,” the Latin name for silver.
  • The old saying, “Nothing glitters like gold” isn’t actually true.  Silver bullion has a higher optical reflectivity than any other precious metal (including gold) and reflects about 95% of the light that hits it.
  • The United States government ceased circulating gold coins as currency in 1933, but continued to circulate silver coins until 1965.
  • NASA used more than 24,000 silver-quartz tiles to protect the Magellan spacecraft from heat and radiation in outer space during its 5-year mapping mission.  Magellan orbited the planet Venus and provided some of the most detailed information we have to-date about the planet, its surface and its gravitational forces.
  • The strongest wrought aluminum alloy, known as Weldalite, contains aluminum, lithium, magnesium, zirconium, copper and silver. The alloy is lightweight and exceptionally strong. It is typically used in aircraft applications, aerospace vehicle construction, and aerospace fuel tanks designed to hold liquid hydrogen and liquid oxygen.
  • Ounce for ounce, elemental silver is 17 times more plentiful than gold, but the ancient Egyptians considered silver to be the more valuable metal.
  • Today, most of the world’s “new” silver comes from Mexico and Peru. Silver is not normally mined for its own intrinsic value. About two-thirds of the new silver produced annually is actually a by-product of lead, copper and zinc mining operations.
  • One reason the value of silver continues to rise is its availability. In 1900, there were approximately 12 billion ounces of silver above ground and available for use. Today that figure has fallen to about 300 million ounces, as silver has become the “go-to” metal for the electronics and automotive industries. Above ground refined silver is actually less plentiful than above-ground refined gold, making it an increasingly attractive investment option.

More than 95% of our annual silver consumption is now attributed to industrial and decorative applications. As the amount of available silver shrinks, the price of investment grade silver rises. As a side note, the annual production of silver has failed to keep up with demand for the metal every year for the last 15 years.

For more information about gold investing, contact Scottsdale Bullion and Gold

Posted by on January 20, 2012. Filed under Business, Miscellaneous. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.