Gold vs Silver: Last year, the economy of the world was severely affected due to the Corona epidemic. However, gold and silver gave better returns for investors. Last year, gold rose by about 28.24 percent in 2020, which was the highest in the last eight years. Apart from this, silver also rose by 45.80 percent in the domestic market, which was the highest since 2010. However, in the case of this year, in 2021 this year, gold has fallen by 10 per cent, while silver has fallen by 6 per cent.
Now if compare gold and silver, last year silver gave investors more returns than gold and this year, there is less decline in the returns of investors than gold. Market experts believe that in the future, silver will get better returns because it is used in industrial products and 5G network is going to come, which will also increase the consumption of silver. Comparing this with gold, there is no special consumption of gold, due to which the investors’ confidence in silver has been strengthened.
Gold and Silver at a discount
Due to the Corona epidemic, investors all over the world were attracted to gold and silver as safe investments. Gold and silver prices reached record highs in August 2020. In August, gold had crossed 56 thousand, while silver had reached close to 78 thousand. However, after this, the situation gradually started normalizing and due to the corona vaccine, its prices started decreasing. Talking about this time, both precious metals are at a tremendous discount. Gold is currently at a price of about 44 thousand while silver is at the price of 67,600.
2021: Gold and silver fall
Earlier this year, the gold price was at 48860 which has now fallen to 44000 and thus the gold price has come down by about 10 percent. Comparing this with silver, the price of silver has fallen from 72 thousand to just 6 per cent and it is now at 67600. Thus, investors’ investment in silver remains more secure than gold. According to Anuj Gupta, vice president (commodities and currencies), IIFL Securities, the main reason for the fall in gold and silver prices is the high bond yields and the gradual return of the market to normalcy. Due to higher bond yields, the trend of investors has increased towards bonds. Apart from this, economic activities are gradually becoming normal, so people’s trust in equity is increasing due to which investment from gold and silver has reduced.
Can get better returns in silver
According to Anuj Gupta, it is a better time for investors to invest in gold and silver. However, there is a possibility of a better return on investment in silver as it is used more than gold. Gold is most commonly used as jewellery in addition to the investment, while silver is used in industries ranging from the medical industry. Silver is also used in EV and both in 5G network and they are going to grow in the future. In such a situation, if you have to invest for a long time, then you can get better returns from silver. By the end of this year, silver prices can once show a level of 75 thousand, while gold can show a level of 51-52 thousand.