As a Chicago gold buyer we are occasionally asked by our clients why silver is cheaper than gold? If you have purchased or sold fine jewelry before, you will know that gold is typically higher in value. And knowing anything about precious metals (gold, silver and platinum) – you might be aware that each of them are made up of different properties. Platinum has a very high melting point. Higher karat gold is soft and malleable. These precious metals have a range of differences that depend on the world spot market price when it comes to their value.
A Closer Look At Precious Metals
All precious metals have some innate value that is considerable compared to other commodities. Gold and silver are among the most popular of the precious metals because they function very well in a number of ways, in decorative, industrial & technology purposes. Each precious metal is rare.
Rarity Of Precious Metals
Furthermore, one of the most crucial elements that go into making silver cheaper than gold is the rarity of the metal itself. Put simply – gold rarer than silver. The imbalance in supply and demand between the two metals makes up most of the difference in their prices. Demand for gold is much higher causing the prices to be relatively higher. Also, the costs of mining and difficulty extracting these precious metals will play a large role in their rarity.
Want to learn more about the value of your precious metals? Head into Chicago Gold Gallery today!