If you are considering purchasing gold or silver for an investment the article and video below will help give you some good insight on why we recommend both of these precious medals be in your investment portfolio.
The Intrinsic Worth of Silver and Gold
Stockpiling Silver and Gold: A Way to Create Wealth
Enduring in all respect, silver and gold are investments that far outweigh the worth of paper currency. Paper money today will be worth the same two decades from now while silver and gold have the potential of multiplying two or three-fold. You might say that having cash versus stockpiling silver or gold is the difference between merely having money or creating wealth.
A Wise Way to Invest
When people are concerned about the economy as a whole, it is a good time to start investing in silver or gold. Both the precious metals have retained their value over the span of time and serve as a good hedge against inflation. They simply are the wisest way to grow prosperous, even in times of economic woe and distress.
Factors to Consider when Investing in Precious Metals
When investors talk about precious metals then, they are primarily referencing silver and gold. Therefore, when you consider investing in a precious metal, you must look at the price, the price ratio, liquidity, storage and the markup related to buying each type of product.
Gold and Silver Spot Prices During the Past Ten Years
Gold and silver prices can move significantly from one year to the next. So, to measure your investment goals, it is best to look at gold and silver spot price charts over the past decade to see how the prices have fluxuated over time. During the past 10 years, gold has ranged from around $260 ounce and has gone up as much as $1,800 per ounce. If you review the price history for silver, it has followed a pattern similar to gold and has maintained an upward trend during the 10-year period.
More Gold is Available Above Ground
If you do review spot prices, you will note that gold has shown significantly higher prices historically. Plus, more gold exists above the ground than silver. About 5 billion ounces of gold are available above ground while around 450 million ounces of silver are found above ground at this time.
Gold is in Higher Demand than Silver
Gold is usually more costly than silver because it is used in jewelry more frequently than its precious metal counterpart. Gold also enjoys a higher demand by both bankers and investors.
The Gold-Silver Ratio
The ratio between the spot prices of silver and gold is referred to as the gold-silver ratio. This kind of calculation is utilized by investors to see if either metal is undervalued when a comparison is made. A gold-silver ratio gauges how much silver can be purchased in ounces with an ounce of gold. The ratio is generally directed in the favor of gold with ratios ranging in the neighborhood of 32:1 to about 84:1 over the past decade.
A Very Liquid Commodity
Both silver and gold are very liquid and viewed by most investors as a valuable commodity. The precious metals can are also considered to be actual currency. Retailers, such as pawn shops, coin and jewelry stores and online platforms, such as eBay, are all eager buyers or sellers of silver and gold.
An Ideal Way to Secure Your Financial Future
Gold and silver can be bought in bullion-like bars, coins and rounds. So, you can diversify your precious metal holdings. You can buy Roth IRAs that are backed by silver or gold too. So, anyway you choose to invest can provide you with a portfolio that will not only increase your wealth but secure your financial future as well.
Precious Metals Investing: An Indisputably Good Choice
Cash is cash is cash but the value of silver and gold can increase substantially over time. You’ve heard about people losing money in the stock market, but you are not likely to ever hear about someone making a poor investment choice when he elects to add either precious metal to his portfolio.