Silver: its price is soaring, should we rush into this metal, which is more affordable than gold?

With the price of gold soaring, silver could also attract investors thanks to its performance and its more affordable price. But can this precious metal really compete?

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From record to record, gold should be among the best investments of the year 2024, and its price should continue to rise in 2025. In its wake, another precious metal, silver, has also experienced meteoric growth. . So much so that some think they have found the perfect opportunity: performance similar to gold, but at a much more affordable price! It is true that on paper, money has everything to seduce. To date, over one year, it displays a performance identical to that of gold, with a increase of 37.68% compared to 37.55% for the ounce of yellow metal – or a little more than 28 grams -, according to the Gold Avenue website. And for a much more accessible price: when to afford an ounce of gold today, you will have to pay 2,488 eurosonly 29 euros are needed for the same amount of money!

A good enough reason to go for the “Maple Leaf”, the “Britannia”, or even the “Semeuse”, named after the most popular silver coins on the French market? Not sure, or at least not to the total detriment of gold. First, for a question… of space! “The advantage of gold is that its value is concentrated in a small volume. On the contrary, silver, if it is purchased in large quantities to generate significant capital gains, will pose a storage problem.recalls Anthony Busco, precious metals expert at AuCoffre.com. However, these storage or delivery costs are added to the cost of money, a “premium” which therefore puts a greater burden on performance.

A diversification investment, alongside gold

Another pitfall is volatility. The progression of the price of silver is indeed much less regular than that of gold, and risks putting you on a roller coaster ride. The reason? “Silver is a metal that is used much more than gold in industry, its price therefore varies greatly depending on global demand”explains Anthony Busco, precious metals expert at AuCoffre.com.

Finally, unlike investment gold, silver is not exempt from VAT. “We advise our clients against purchasing silver bars, for example, because a 20% VAT applies »specifies Anthony Busco. The only solutions to avoid going to the checkout: acquire recently issued coins that are legal tender, which are not subject to VAT, or “give up holding the purchased money and opt for storage in a free port, as we offer in Switzerland”recommends Alessandro Soldati, founder of Gold Avenue. In this customs zone, VAT does not apply as long as the money is stored there and is not delivered to its owner on French territory.

For these practical reasons and volatility, silver cannot constitute the entirety of a precious metals portfolio on its own. It is primarily aimed at investors who would like to boost their investment in gold, by adding a riskier portion: “for our clients this pocket generally does not exceed 20% to 25% of the total stake”confides Alessandro Soldati.