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# The Silver Storage Myth

Commodities / Gold and Silver 2014 Mar 13, 2014 - 01:13 PM GMT

By: Paul_Behan

I have often heard some “experts” explain how much space it takes to store physical silver in comparison to gold. For example, they say if the gold silver ratio is (GSR) is 50 to 1, it takes 50 times more space to store the physical silver over the same value of gold.  While the GSR is valid for comparing the price of the two metals, it only makes up part of the equation on the space it takes for storage. What is often overlooked is the density of the metals. The density of pure gold is 19.3 which equates to:

 tonne per cubic meter (t/m3) 19,32 kilogram per cubic meter (kg/m3) 19.320 gram per cubic meter (g/m3) 19.320.000 milligram per cubic meter (mg/m3) 19.320.000.000 kilogram per litre (kg/L) 19,32 gram per litre (g/L) 19.320 gram per millilitre (g/mL) 19,32

The density of pure silver is 10.5 which equates to:

 tonne per cubic meter (t/m3) 10,5 kilogram per cubic meter (kg/m3) 10.500 gram per cubic meter (g/m3) 10.500.000 milligram per cubic meter (mg/m3) 10.500.000.000 kilogram per litre (kg/L) 10,5 gram per litre (g/L) 10.500 gram per millilitre (g/mL) 10,5

In plain English, this mean it takes 83% more space to store 1 ounce of silver than 1 ounce of gold (19.3 divided by 10.5).

A simple example is if gold is \$1000 per ounce and silver is \$20 an ounce (50 to 1 GSR) and you invested \$1000in each metal, it would take 91.5 times more storage space to store the silver over the gold. (1oz gold X 50 (GSR) + 83% density difference )

Paul Behan
www.ozcopper.com

© 2014 Copyright Paul Behan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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