An investor who has decided to invest in precious metals has four choices: gold, silver, platinum, and palladium. This article is limited to choosing between gold and silver. There are times when gold is a better investment, and there are times when silver is a better investment. Let us start by looking at the charts.
The chart shows that from June 2006 to November 2008, gold was a better investment than silver; during this period a gold investor would have gained over 10% while a silver investor would have lost over 20%. From November 2008 to May 2011, silver was a better investment than gold; silver significantly outperformed gold as shown on the chart. From May 2011 to present, gold has been a better investment than silver; losses on gold have been considerably less than those on silver. The y-axis scale on the chart is a percentage scale starting with 0% at the beginning of the chart.