What is a better investment gold or silver? Is money in the bank losing value against the inflation rate?

Gold and silver have had an amazing few years. In hindsight, there are very few people who were better off by investing in anything other than gold or silver in recent years... however looking into the future we have no hindsight. Typical returns on gold are VERY low compared to most other investments.

Money in the bank is making between 0.5% and 5% (depending on the bank and the savings vehicle you use). Inflation tends to run around 3% and in 2007 was 4%. So money in the bank is approximately keeping up with inflation, so it is neither gaining nor losing value. If you have a significant amount in the bank, be sure you are earning 4%+ interest. That rate is easy to find with online banks if no local banks offer it.

Depending on what this investment is for, there are many options that are likely better than gold/silver. For most people, their largest investment account is for retirement. There are great tax advantaged accounts for this: 401k, ROTH IRA. If your company offers a 401k, check it out and invest risky (stock funds) if you are young; or less risky (balanced funds/bonds) if you are older. Stock funds have averaged 10%-11% for many decades. Bond funds tend to run around 5%-7%. Being very expensive right now, gold could potentially lose alot of value soon... although no one knows the future.

If you're interested in a ROTH IRA (no immediate tax advantage, but when you take the money out it is completely tax free), check out Vanguard:
https://personal.vanguard.com/us/account...

Read all you can about the ROTH IRA and other options. Knowledge is certainly power (and money) in this case.
Vanguard has the lowest fees and is often rated as the best mutual fund company. Their "Target Retirement" accounts are great for those who want to stash their money away and never worry about it. These accounts start out riskier when you're young and slowly become safer as you approach retirement age. Find the fund with a date near your retirement date (ie 'Target Retirement 2040') and open a ROTH IRA with that fund.

Best of luck in your investing future!