Comparing the Return on Investment of Gold vs Silver: A Three-Year Analysis

November 23, 2023
Gold Bullion

In the world of precious metals, gold and silver have long held their positions as coveted investments. Both metals have a rich history of value and continue to be sought after by investors worldwide. However, when it comes to return on investment (ROI), how do these two precious metals compare?

Gold vs Silver

Gold vs Silver: A ROI Analysis

To assess the ROI of gold and silver over the past three years, we’ll use Wild Side Pawn as our reference point for pricing. As a trusted pawnshop and precious metal dealer, Wild Side Pawn offers competitive prices for both gold and silver bullion.

Initial Investment Costs VS ROI

Which investment cycle is right for you? Gold has shown a higher return historically, and has a higher initial investment cost. Silver has a lower initial investment cost and a lower return. Choosing the one that fits your economic situation best is the best way to make sound long-term investments.

Three years ago, in November 2020, 10 troy ounces of gold at Wild Side Pawn cost approximately $19,200.

Today, in November 2023, the same amount of gold is worth approximately $20,793, representing a ROI of 8.3%.

That same gold bought in November 2000, which was around $265.15 per ounce, would yield an ROI of over 600%. Similarly, three years ago, in November 2020, 10 troy ounces of silver at Wild Side Pawn cost approximately $1,850.

Today, in November 2023, the same amount of silver is worth approximately $1,828, representing a slight ROI decrease of 1.2%.

However, when we look at the 10 year ROI on silver, the price of silver has also increased significantly since November 2000. The price of silver today is about $19.95 per ounce, compared to $4.32 per ounce in November 2000. This represents an increase of over 366%.

A Closer Look at the Price Fluctuations


While gold has shown a steady increase in value over the past three years, silver has experienced more volatility. In August 2020, silver reached a peak of $28.90 per troy ounce, but it has since retreated to its current price of around $18.28 per troy ounce.

These price fluctuations can be attributed to various factors, including global economic conditions, supply and demand, and investor sentiment. Gold, often considered a safe haven asset, tends to perform well during periods of economic uncertainty, while silver is more sensitive to industrial demand.

Gold vs Silver

Factors that influence Silver

Industrial demand: Silver is a key component in many industrial applications, such as electronics, solar panels, and jewelry. As the global economy has grown, so has the demand for silver.

Investment demand: Investors are increasingly turning to silver as a hedge against inflation and economic uncertainty. This has helped drive up the price of the metal.

Speculative trading: Silver is also a popular target for speculative traders, who may buy or sell the metal based on their expectations for future prices. This can lead to volatility in the silver market.

Physical supply constraints: There are limited silver mines in operation, and some of these mines face challenges with production. This can put upward pressure on the price of silver.

Factors that influence Gold

Inflation has increased the price of goods and services, as well as gold.

Geopolitical uncertainty: Political instability and economic turmoil can cause investors to seek safe-haven assets like gold.

Demand from emerging markets: The growing middle class in emerging markets is driving demand for gold as an investment and store of value.

Central bank buying: Central banks around the world are buying gold as part of their reserves, which is further increasing demand and driving up the price.

Which investment is right for you?

When deciding whether to invest in gold or silver, it’s important to consider your investment goals, risk tolerance, and portfolio diversification.

Gold is generally considered a more stable investment, offering a hedge against inflation and economic downturns. Silver, on the other hand, has the potential for higher returns, but also carries more risk due to its greater volatility.

Mixing Gold and Silver in your investment strategy

Deciding on the right investment mix of gold and silver depends on your individual risk tolerance, investment goals, and portfolio strategy. Both gold and silver have historically been considered safe-haven assets, but they have different characteristics and respond differently to market conditions.

Gold prices


Characteristics: Gold is a precious metal with a long history as a store of value and a hedge against inflation. It is relatively rare and has high liquidity, making it easy to buy and sell.

Market performance: Gold tends to perform well during periods of economic uncertainty, as investors seek safe havens for their wealth. It has also shown a positive correlation with inflation, meaning its price tends to rise when the general price level of goods and services is increasing.

Gold vs Silver


Characteristics: Silver is another precious metal with industrial applications in electronics, solar panels, and jewelry. It is more abundant than gold, but also more volatile, meaning its price can fluctuate more significantly.

Market performance: Silver tends to be more sensitive to economic growth, as its industrial demand increases alongside economic activity. It has also shown a positive correlation with gold, but its price movements can be more pronounced.

Gold Prices

Considerations for Investing in Both

Risk tolerance: If you are a risk-averse investor, you may want to allocate a larger portion of your portfolio to gold, as it is generally considered a more stable asset. If you are more comfortable with risk, you may allocate a greater proportion to silver, as it has the potential for higher returns.

Investment goals: If your primary goal is to preserve wealth and protect against inflation, gold may be a better choice. If you are seeking higher potential returns, silver may be a more suitable option, but be prepared for increased volatility.

Overall portfolio strategy: Consider the asset allocation of your portfolio. If you have significant exposure to stocks or other riskier assets, adding gold or silver can help diversify your portfolio and reduce risk.

Recommended Investment Strategy

A common recommendation for a gold-silver investment mix is 60% gold and 40% silver. This allocation provides a balance between the stability and wealth preservation offered by gold and the potential for higher returns from silver. However, you should adjust this mix based on your individual circumstances and risk tolerance.

Remember, it is always advisable to consult with a financial advisor to discuss your specific investment goals and risk tolerance before making any investment decision.

Wild Side Pawn And Jewelry Logo

Wild Side Pawn: Your Trusted Source for Precious Metals

Finding a reputable precious metal dealer is crucial if you’re considering purchasing gold, silver, or other precious metals. Here are some tips for finding a trustworthy dealer:

Check online reviews and ratings: Look up the dealer’s name and location on online review platforms like Google My Business, Yelp, and Better Business Bureau (BBB). Gather information from multiple sources to get a well-rounded assessment.

Check for memberships and certifications: Reputable dealers typically belong to reputable associations like the American Numismatic Association (ANA), the Professional Numismatist Guild (PNG), and the Diamond Dealers Club of New York (DDCNY). These organizations uphold high standards and provide valuable resources for consumers.

Verify licensing and insurance: Ensure the dealer holds the necessary licenses and insurance required to conduct business in your state. This demonstrates their commitment to transparency and accountability.

Compare prices: Get quotes from multiple dealers to ensure you’re getting the best price for the precious metals you’re interested in. Be wary of dealers offering prices significantly lower than others, as they may sell counterfeit or substandard products.

Visit the dealer’s showroom: If possible, visit the dealer’s physical location to assess their professionalism, customer service, and trustworthiness. Observe how they handle their products and interact with customers.

Ask questions and request documentation: Don’t hesitate to ask the dealer about their sourcing, pricing policies, and return procedures. Ask for detailed documentation of the precious metals you’re interested in, such as assay certificates and purchase records.

Consider online dealers: If you prefer the convenience of online shopping, research reputable online precious metal dealers that offer transparent pricing, secure payment options, and a clear return policy.

Read the fine print: Before committing to a purchase, carefully review any contracts or agreements provided by the dealer. Ensure you understand the terms, conditions, and fees associated with the transaction.

Beware of scams: Be cautious of unsolicited offers or deals that seem too good to be true. Never wire money or provide personal information to someone you haven’t verified or met in person.

Seek professional advice: If you’re new to precious metal investments, consider consulting with a financial advisor or precious metal specialist to guide you through the process and make informed decisions.

Remember, thorough research and due diligence are essential when selecting a precious metal dealer. By following these tips, you can increase your chances of finding a trustworthy partner for your precious metal needs.

Whether you’re a seasoned investor or just starting out, Wild Side Pawn is a trusted source for buying and selling precious metals. Their experienced staff can provide valuable insights and guidance to help you make informed investment decisions.

Gold and silver have both demonstrated their long-term value as investment assets. The choice between the two depends on your individual circumstances and investment goals. If you’re seeking stability and a hedge against economic risks, gold may be a suitable option. If you’re willing to accept greater risk for the potential of higher returns, silver may be a better choice.

Remember, investing in precious metals involves inherent risks, and past performance is not necessarily indicative of future results. Always conduct thorough research and consult with a financial advisor before making any investment decisions.