Gold and silver are the most common precious metal commodities that still hold value in modern currencies. These precious metal sisters are used as a way to measure the strength and weakness of an economy. We saw this at the end of last month when the UK decided to leave the European Union, and the silver and gold price started to rise and fall. This week we take a closer look at the sisters.
What determines Gold and Silver Value
Besides the economy, the price of these precious metals are also determined by its usage and rarity. Gold holds a higher value than silver because silver is about 17.5 times more abundant than gold in the earth’s crust, but silver is more commonly used in the industry than gold. Silver is used in most electrical appliances, in the medical industry, in wood preservatives, water purification, food hygiene and many everyday items. Gold, on the other hand, has limited industrial usage, but still has a high demand.
Gold and Silver Prices
For the past 6 months, the gold price has had drastic rises and falls, while the silver price has had a steady rise. Gold started the year, averaging in the low 1500’s CAD, and ended the month, averaging in the low 1700’s CAD, but fell back in the 1500’s CAD in April. Since then, gold has continued to rise, averaging in the 1700’s CAD, at the end of last month. Silver started the year averaging at 19.00CAD and ended last month at 24CAD. For information about the rise of silver prices, check out last week’s blog post.
Because gold holds so much power in the global markets, many investors see it as a safe haven investment while silver is invested in for future investments. Many investors invest in gold in hopes of selling it in the future for a bigger return. Silver is invested in primarily for its many usages or to be exchanged for gold. We offer exclusive investment programs such as our CBMAP Accumulation Program for silver investors.
Canadian Bullion Services is an international precious metals dealer headquartered in Toronto, that is ranked among the top precious metal dealers in Toronto. Visit our main site for more information, and keep up with us on Twitter and Facebook. Don’t forget to check out our weekly posts every Tuesday!
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Image Source: mining.com