Should You Invest in Gold or Silver First?

If you’ve made it to this article, congratulations. You’re asking a very important question, and you’ve probably done some research already and learned that gold and silver are excellent stores of value. They’re timeless, they’re not tied to the fiat money system, and most importantly, you own them. But you might want to know: should you invest in gold, should you invest in silver, or both? We’re so glad you’re here.

At a high level, there are a few big things we want to cover:

• Gold is less volatile than silver, on average.
• Silver is more affordable than gold, so you can get more bang for your buck in terms of quantity.
• The gold-to-silver ratio is a quick way to see how one ounce of gold compares to how many ounces of silver.
• Both gold and silver are great ways to diversify a portfolio, and once you start investing in one, you’ll probably want to invest in the other at some point. So it helps to do some research.

Let’s get into it.

The Advantages of Buying Gold

Gold is a truly remarkable metal, partially because of how unremarkable it is. It doesn’t react with almost any other element. It conducts electricity well. It’s malleable, but it’s also sturdy, and it doesn’t tarnish.

Gold is also much more limited in production versus silver. Some estimates say all the gold ever mined in human history could fit into a single cube measuring about 22.6 meters, or roughly 74 feet, on each side, which comes to about 222,600 tonnes according to the World Gold Council.

This is important because of scarcity. Scarcity is how rare something is, or how much of a resource there is, and gold is much more scarce than silver. Silver is a natural byproduct of mining other metals, and it has numerous industrial applications. It’s easy to use in the automotive industry, technology, and in our everyday jewelry, plates, cups, and more.

Gold has proven consistently less volatile in the market during global turmoil, a stock market crash, or other crises, because demand is significantly higher and supply is much lower for silver. Gold is a good hedge against inflation and volatility. You can read more on our why buy gold page.

The Advantages of Buying Silver

Silver has its own strengths. First, it’s very easy to transact with. There are still silver coins in circulation. Silver coins meaning coins with real silver content, typically containing ¾ of an ounce. If you buy a bunch of these silver dollars, you can technically still spend them. However this might be a waste as their silver content value is worth more than their face value of $1. Additionally, silver has a lower entry level for investors so it is much easier to exchange on the open market and in the real world. This is simply because each piece is worth less compared to gold. You can also get a large volume of silver for a modest amount of money.

It’s important to note silver has wider price swings. This movement is a reflection of supply and demand. Precious metals don’t have a board of directors or quarterly earnings, so it isn’t a return in the strict sense. But you might see the price of silver appreciate more rapidly, and conversely depreciate more rapidly, depending on the market. Our why buy silver page covers silver’s demand picture in more detail.

According to Morgan Stanley, more than half of silver’s demand comes from heavy industry and high technology, which makes it more responsive to the global economy than gold. That works in both directions: silver climbs harder when the economy is booming, and drops harder when it isn’t.

The Gold-to-Silver Ratio

The gold-to-silver ratio is how many ounces of silver it takes to buy one ounce of gold. When the ratio is high, it takes a lot of silver to equal an ounce of gold, and some investors read that as a good time to buy silver. When it’s low, gold is the preferred investment. Many investors don’t put much weight on the gold to silver ratio, but it’s a quick way to compare the two.

Gold Is Easier to Store. Silver Takes Up More Room.

Here’s something that surprises new investors: for the same dollar value, gold and silver take up wildly different amounts of space.

Say you want to hold $40,000 in precious metals. At $4,000 an ounce, that’s about 10 ounces of gold. Now take that same $40,000 in silver at roughly $70 an ounce. That’s about 571 ounces, or somewhere around 35 to 39 pounds. One fits in the palm of your hand. The other is a fairly heavy amount of silver, an important point to be aware of.

Why You Might Want Both

Many articles or headlines you read about precious metals are snapshots: a big spike in volatility or a single news event. The fuller picture shows up over time, which is why we publish a monthly market recap. A few highlights from the past year:

• In December 2025, gold, silver, platinum, and palladium all hit all-time highs, capping their best year since 1979.
• Fast forward to June 2026, and the market cooled off very intensely. All four metals fell together, and silver had the worst go of it.
• By August 2026, gold posted its best month since January.

This really highlights how the market shifts. Over the last several years, we’ve been tracking these metals, and they’ve been extremely volatile. There is a case for owning both, because they respond to different economic stimuli. If all your eggs are in one basket, you’re susceptible to the risks of that basket. Let’s say the stock market tanks. Historically speaking, gold is probably going to decline less than silver, because silver is much more directly tied to the global economy.

Why Buy From CMI Gold & Silver

We are a family-owned precious metals dealer that’s been in business since 1973, and we’ve been helping our clients and friends navigate these markets for over 50 years.

Gold and silver are both excellent stores of value with thousands of years of history behind them. Whether you want a little of each, or you’re starting with one and building toward the other, it’s important to understand what you’re buying and why you’re buying it. Both beat idle cash for storing value, holding purchasing power, and standing up to inflation.

If you want to learn how to buy gold or silver, work with a reputable dealer. If you have any questions, we’d love to discuss it with you. Give us a call or schedule a time with one of our commission-free brokers. You’ve come to the right place, and we’re glad you’re here.

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