Why are gold and silver referred to as precious metals?

Gold and silver have long been acknowledged as precious metals and were highly prized by prehistoric societies. In today’s market, these precious metals still have a place in the portfolio of an astute investor or even anyone who favors saving and investing in gold and silver.

There are myriad reasons to purchase precious metals like gold and silver, as well as numerous justifications for giving in to your need to go on a treasure hunt. Check out these precious metals and why they are worth saving and investing in.


Since societies have placed such a high value on this metal that reflects light like no other for hundreds of years, gold has been the world’s most widely used precious metal until now. Due to its strength (it doesn’t rust or corrode), malleability, and capacity to conduct both heat and electricity, gold is unlike other metals. Although gold has specific commercial uses in dentistry and electronics, we are most familiar with it as the foundation for jewelry and as a currency. Gold serves two purposes: it has industrial and financial applications.

Gold is ductile, conducts electricity, and has excellent heat resistance. Hence, industrial users—including those in the electronics, dental, and medical fields—consume 10% of the gold mine supply annually. Gold has a long history of use as an ornamental metal, and demand for jewelry-making or fabricated items make up 50% of annual production. Lastly, gold is money, as many individuals hold gold rather than other investment assets.

Moreover, the market decides its value 24 hours a day, every hour, every day of the week. Gold trades mainly according to sentiment; the rules of supply and demand impact the metal’s price less. This is because the massive amount of gold stored above ground outweighs the supply from new mines. In other words, the cost reduces when hoarders decide to sell. A new supply is quickly consumed when they wish to buy, which raises the price of gold.

The desire to stockpile this bright yellow metal has increased for several reasons:

1. Inflation > People frequently consider gold an asset with a stable value when accurate rates of return (RoR) in the equity, bond, or real estate markets are negative.

2. Systemic money issues > Gold has historically been regarded as a reliable store of value when banks, money, and governmental stability are viewed as unstable.

3. Wars or political disputes > People have always tended to horde gold during conflict and political unrest because it will affect the global economy. It’s always an excellent way to save and invest in gold amidst emergencies or uncertain economic situations.


Even though most choose gold, silver is a very sought-after metal due to its cost and use. Silver is a precious metal for jewelry, coinage, electronics, and photographic equipment. As a result of having the highest electrical conductivity of any metal, it is a precious substance. In many different cultures and religions worldwide, silver is used in customary rituals, worn as jewelry on special occasions, and is one of the preferred accessories among women.

An individual may reasonably and naturally ponder whether a specific asset is a good investment. This is especially true for silver, which has a far smaller market and less prestige than gold. Nonetheless, there are many compelling reasons to diversify our portfolio with physical silver at this time in history (and only one of them is because the price will rise).

These are a few reasons why we should consider purchasing silver bullion, saving, and investing in silver.

1. Silver is real money > Although silver is not a component of our currency, it is still money. In reality, since it cannot be generated out of thin air (and therefore cannot depreciate) like paper or digital forms, silver and gold are the ultimate kinds of money. We do mean actual silver when we refer to genuine money. Like gold, physical silver serves as a store of value. No counterparty risk is one reason why. You don’t need a third party to fulfill a pledge or contract if you own actual silver.

2. Silver is affordable > What if I told you that you could purchase a hard object for about 1/65th of the cost of gold, which would offer you the same level of protection against inflation? With metal, we get exactly that! It is significantly more affordable for the typical investor and an individual who values silver. Yet, as a precious metal, it will support our standard of living during times of monetary dilution just as well as gold. Indeed, silver can be our ticket to owning some valuable metals if we are unable to afford to purchase 1g of gold.

3. Silver is more practical for small purchases  > Silver is not expensive but more useful when we need to sell. It’s possible that we won’t ever need to sell an entire ounce of gold to cover a minor expenditure. There’s silver. We can only think of what we want or need because it frequently appears in smaller denominations than gold. For precisely this reason, we should keep some metal on hand. Remember that we can buy and sell silver bullion almost anywhere globally.

Thus, should you save and invest in gold and silver? If you wonder how to buy, earn, transfer, sell, and redeem in gold and silver safely and efficiently, get yours at AlaDeen Gold Wallet. By subscribing to the AlaDeen Gold Wallet, you will instantly be updated with the current market price of gold and silver at your fingertips. EXPLORE a truly Shariah-Compliance AlaDeen Gold Wallet by installing it via Google Play Store or App Store. The AlaDeen Gold application is available on Android and iOS. It’s always the right time for all of us to start saving and earning in gold and silver to help us back up our savings and gain our financial goals.

Never say never. These two precious metals will always be worth choosing, although our options will be based on our objectives, circumstances, and the metal that offers the most of the advantages we’re looking for. Whatever we decide, one thing is certain: safe-haven investments or assets like gold and silver are a wise strategy to safeguard our financial future in the current economic challenges.