So we know that gold is currently much more valuable than silver. That’s the general knowledge right now, and that’s why companies that have money to invest prefer to buy gold over silver. Because they’re buying and selling gold, their profit margins are larger.
Another reason companies invest in gold is that they know that gold is very popular. Over time, gold has always been considered one of the most valuable metals on this planet. People always traded gold. Kings wore gold all the time. Gold is used as a synonym of wealth. On the other hand silver is called “the gold of the poor”, and of course none of the big and wealthy investment firms want to work with something that’s associated with poor people. So, they select gold over silver.
But gold will decrease in value relative to silver because there will be much more of it as silver is depleted.
The main reason for which we use gold is to store value. Gold is our reserves. Gold is something that will be in demand and we will always be able to trade it for money or for anything we want. It will always be wanted and needed by almost any country in the world.
The crazy thing is that people don’t really consider silver to be a great way to store value. The reason for that is its price. If we want to have enough silver to even consider anything serious we have to have a lot of it. But as I have mentioned in the previous chapter it will not be a case for ever.
Silver will be just as good as gold as a means to store value in the very near future. We will want to buy silver from the investors because we will simply need it for our lives. This is common knowledge for many people that have interest in trading precious metals for long-term investments. Hopefully after reading this book this is common knowledge for you.