Gold or silver: which should you buy?
Gold and silver are both precious metals, but they behave quite differently once you own them. This guide compares price per ounce, how much each swings, what you pay above spot, how much room each takes up and what the gold/silver ratio tells you, so you can decide what fits your plans.
The short answer
Gold packs a lot of value into a small space, carries low premiums and has historically moved less sharply than silver. Silver costs far less per ounce, so you can start with a small amount, but it carries higher premiums, swings more in price and takes up much more room.
Many US buyers hold some of each. This guide explains the differences; it isn't investment advice, and neither metal is guaranteed to rise in value.
Price per ounce: what your money buys
Both metals are quoted in US dollars per troy ounce, but the prices are very far apart. An ounce of gold has cost many times more than an ounce of silver for as long as modern markets have existed.
That gap shapes how people buy:
- Silver lets you start small. A single 1 oz silver coin costs a modest amount, and you can add to a holding a few coins at a time.
- Gold needs a larger outlay for a full ounce, although small bars from 1 g upward let you buy smaller amounts at a higher premium.
You can see both prices side by side on our gold price chart and silver price chart.
Volatility: how much prices swing
Silver's price has historically moved more sharply than gold's, both up and down. Part of the reason is that silver has two kinds of demand: as a store of value, like gold, and as an industrial metal used in electronics, solar panels and many other products. When the economy or industrial demand shifts, silver can feel it more.
Gold's market is also much larger in dollar terms, and central banks hold it as a reserve asset, which tends to steady it.
In practice:
- If large price swings would make you uncomfortable, gold may suit you better.
- If you are comfortable with bigger moves in both directions, silver may appeal, but expect sharper falls as well as sharper rises.
Premiums: silver costs more above spot
The premium is what you pay above the spot value of the metal. Making, packaging and shipping a 1 oz silver coin costs about the same as for a gold coin, but the silver inside is worth far less, so the premium is a much larger percentage.
Premiums on AU Trading at the time of writing (they can change, so check the product page):
| Product | Premium over spot |
|---|---|
| Gold American Eagle, 1 oz | 5% |
| Gold bar, 1 oz | 2.8% |
| Gold bar, 100 g | 2% |
| Silver American Eagle, 1 oz | 28% |
| Silver Maple Leaf, 1 oz | 20% |
| Silver bar, 1 kg | 10% |
| Silver bar, 100 oz | 7% |
With silver, the price has to rise further before you would break even on a sale. Larger silver bars narrow the gap considerably. Our guide to spot price and premiums explains how premiums work in more detail.
Storage: silver takes up space
Because silver is worth so much less per ounce, the same dollar amount buys far more metal. Using hypothetical round numbers only, with gold at $2,000 and silver at $25 per ounce:
- $10,000 in gold is 5 troy ounces, a stack of coins that fits in the palm of your hand.
- $10,000 in silver is 400 troy ounces, more than 12 kg (about 27 lb), which needs a good part of a safe shelf.
That matters for a home safe, a bank safe deposit box and moving house. Silver also tones (darkens) over time and needs to be kept dry, while pure gold doesn't tarnish. See our guide on how to store gold and silver.
The gold/silver ratio
The gold/silver ratio is simply the price of one ounce of gold divided by the price of one ounce of silver. It tells you how many ounces of silver one ounce of gold would buy. With the hypothetical prices above, $2,000 ÷ $25 gives a ratio of 80.
The ratio is not fixed. Over the past few decades it has swung widely, at times below 40 and at times above 100. Some buyers watch it as a rough guide:
- When the ratio is high, silver is cheap relative to gold, and some buyers lean toward silver.
- When the ratio is low, gold is cheap relative to silver, and some lean toward gold.
Treat it as one piece of context, not a signal. There is no rule that the ratio has to return to any particular level, and both metals can fall at the same time. You can work out today's ratio from the two price charts.
Selling and liquidity
Both metals are widely traded in the US, and well-known coins such as the American Eagle in gold or silver are easy to sell to dealers. Two practical differences are worth knowing:
- Gold is easier to sell in one go: a few coins can be worth a significant amount and are easy to carry or ship.
- Silver in large amounts is heavier and bulkier to ship or deliver to a buyer, which can add cost when you sell.
For US federal income tax, both are generally treated as collectibles when you sell at a gain. Please check with a qualified tax adviser about your situation.
Which suits whom
| If you… | Consider | Why |
|---|---|---|
| want to start with a small budget | Silver coins | Low cost per ounce |
| want low premiums and compact storage | Gold coins or bars | Low premium, high value in little space |
| are comfortable with bigger price swings | Some silver | Historically more volatile than gold |
| want steadier, simpler holding | Mostly gold | Historically less volatile, easy to store |
| have limited storage space | Gold | Silver takes far more room for the same value |
Common questions
Is silver a better buy than gold?
Neither is better in general. Silver is cheaper per ounce and can move more sharply, while gold has lower premiums and is easier to store. It depends on your budget, storage and comfort with price swings.
Why are silver premiums so much higher?
The cost of making and shipping a coin is similar for both metals, but silver is worth far less per ounce, so the same cost is a larger percentage of the price.
What is a "good" gold/silver ratio?
There isn't one. The ratio has varied widely over time, and some buyers use it as background only. It doesn't predict where prices will go.
Can I buy gold and silver in the same order?
Yes. You can add both to your cart and pay for them together with one wire transfer or ACH payment.
