“Gold and silver is money, everything else is credit.”
– J.P. Morgan
Gold is the only money that has never failed in the 5,000 years history of its use by humans. Paper currency have an average lifespan of about 40 years. Both metals are valued in U.S. dollars, so when the dollar falls in value, gold and silver typically rise because they become less expensive to buy using other currencies.
The volatility in silver prices can be two to three times greater than that of gold on a given day. While traders may benefit, such volatility can be challenging when managing portfolio risk. “That volatility can translate to larger short-term gains, but it often carries the risk of greater downside,” says Nicholas Thompson, who manages Morgan Stanley’s physical precious metals offering for Wealth Management clients.
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