Investments in precious metals have always been popular among people. And there is nothing weird since this type of investment is considered to be one of the safest possible options. The other great advantage that can not be disregarded is stability. Basically speaking, due to the number of benefits more and more people all over the world are considering this investment choice. And here comes the other questions: Which of the precious metals you should invest in? It goes without saying that gold and silver are the most popular variants. So, which one to choose – gold or silver investment?
Gold and Silver Investment – Gold and other precious metals have been moving rapidly upward in the market, and investors wonder what investment vehicles are the best choices to capture that upward price appreciation in the precious metals market. Many wish to buy and hold the precious metals themselves, but there are a number of alternatives. Each of these different options has its own strengths and weaknesses. This discussion gives some basic information on the most common possibilities. Depending on what your goals are, you may choose to use one or more of the available options described below. I’m not an investment counselor, nor am I offering any investment advice, but here is a brief explanation and introduction to each of the best known opportunities for precious metals investment:
US and international gold bullion coins
The US and many other countries have made and are continuing to make gold bullion coins for sale. These are not gold coins which are rare and have numismatic value, but are coins made for investors interested in their bullion value. The American gold eagle coin is available and denominations of 1/10 ounce, one quarter ounce, one half ounce and 1 ounce. The great advantage of bullion coins is that they are easily available, liquid and portable. Most coin shops buy and sell them. If you plan to buy small amounts of gold, perhaps half an ounce a month for investment purposes, this is the kind of thing you may be interested in. The disadvantage is that they have a significant cost of getting in and out. It will cost about $25 plus the spot price for 1 ounce coin, and if you sell it you will receive a few dollars less than the spot price. The cost for a buy and sell combined is about $30. Foreign bullion coins, such as Canadian Maples or Krugerrands are slightly less liquid but may also have lower buy and sell costs. There are also one ounce silver bullion coins, which are available with a similar significant cost to buy and sell.
The following information will help you to make this choice.
To begin with it should be pointed out that silver formed proportional raiser that was almost always higher than the one created by gold. In addition, the cost of silver increased in 3 – 4 times while cost of gold doubled. To go into more details there is a need to add that it is a historical fact that the cost of silver has been significantly rising every time the dollar rates dropped.
Ever wondered why silver has taken over gold as the most rare precious metal? Read on the article below and discover the top 5 reasons on why we should buy silver in this current uncertain economy.
Reason 1: Silver mining demand are not enough to meet the current demands. Silver are often a by-product of mining copper, lead, zinc and gold. Getting silver is a bonus for mining companies.
Reason 2: Worldiwde economic growth e.g. China & India – resulting to more goods (esp electronic goods) being produced. Silver is the indispensable metal in most electronic goods (e.g. handphones, films, jewellery) as it is the most electrically conductive, thermally conductive and reflective.
Reason 3: Declining dollar (US, Euro) – With confidence dwindling in fiat currencies such as US dollars and Euros, people and investors are turning to real money which have withstood centuries, such as gold and silver.
Reason 4: Rising tide in investing demand – Gold and silver, are also known as commodities. Recently, there have been an increase in commodities demand. Gold is peaking now, and silver, the more neglected real money with gold, will gain investor’s demand as people realize the gold prices are too high.
Reason 5: Gold/Silver Price Ratio – Gold and silver price ratio have always been 1:16. The current ratio is 1:69. Apparently, there are potential for silver prices to move closer to that of gold’s as silver are becoming more rare compared to gold in the current era.