Friday, October 7, 2011

Investing in gold and silver

If we consider the precious metals in terms of investment, neither of which investment income can not be considered. However, gold and silver recently brought no small profit to those who invested in it. Probably not worth talking about investing in precious metals.

Precious metals have always been a defensive asset, and they remain the same, besides this product. In recent years, the fiscal deficit of the developed capitalist countries like the United States and Great Britain only grew. Grew up in the meantime and precious metals. Those investors who have invested in precious metals, have not lost anything, be more correct to say so.



The right will not consider the growth of gold or silver to the dollar and the dollar's decline relative to the past, due to its depreciation. But it cuts both ways. On the one hand investors are moving away from risk in defensive assets, reducing their value relative to precious metals. On the other hand the demand for precious metals as a commodity. In the end, in gold and silver stored large speculative capital. As soon as the situation on world markets start to recover and show signs of sustained global growth. All of these speculative mass will rush into other markets, in particular, to the fund. And the cost of precious metals, in our opinion significantly drop.

When then, the dollar was pegged to gold and an ounce was given U.S. $ 35. How much is gold today? It is terrible to imagine! To date in 1755 dollars. After gold was released to float freely in 1971, and by 1980 it had grown to about $ 850. Of course, the current price has surpassed its historical high, but it is believed that taking into account inflation, based on current prices the price of gold reached $ 2,500.

In recent times, gold was to grow rapidly after 2004, breaking the 1994 peak of 400 dollars. And has quadrupled in seven years. This rapid growth, explain instability of the financial policy of the USA and the world's reserve currency - the dollar, a large balance of payments deficit of the United States, as well as the global economic crisis of 2008, all of this is driving investors to seek protection from the risk of precious metals.

Drew attention to the silver. In 2005, an ounce of silver was given $ 7. How much is silver today? About $ 40. Growth is almost six times evokes the strange reflections. You should not lose sight of one fact, that as a rapidly growing precious metals, as they begin to fall rapidly. Will this course only if the current balance of global financial and political forces of change, change management mechanism of world trade will be sustained economic growth that can lead to a reduction in balances of payments. Either start the next global economic crises, in which case the behavior of precious metals in general are not predictable. It is difficult to understand how investors will behave against the overall global panic.

Where and how to buy gold and silver

Where to buy gold? There are several options for investments in precious metals is investment coins, paper gold in form of depersonalized metal accounts, bullion, certified Australian government Perth Mint, futures for the supply of metals on the exchange.

Where to buy silver? The same place where the gold, enough options here: you can buy futures at the broker, you can buy bullion in a bank. It is worth noting that in the investment plan, many make the mistake of buying feverishly silver or gold products. Price of a product depends on the quality of its performance and art jeweler, not just the price of the metal from which it is made, so the investment attractiveness of jewelry is highly questionable, as opposed to the aesthetic.

Buy gold in the bank can be in the form of bullion coins, ingots, or opening an impersonal account. Buy silver at the bank can be in the same way.

What's more profitable silver or gold?

At the moment the precious metals provide a good opportunity to get away from risk. It was in this capacity today and are considered the gold or silver. By impersonal accounts do not accrue interest.

Gold and silver does not make any money, but it will always be gold and silver and is regarded as a safe haven. Slight shocks on world markets immediately lead to an increase in demand for protective assets, which are primarily precious metals.

What's more profitable silver or gold? A moot point. On one side is actively used in the silver industry, with its other production increased in recent years. Doubt that silver is more convenient in terms of investment, since it is cheaper.

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