What is more profitable now: to invest in gold or silver? – A question asked by many people now who have decided not to just make money, but also to invest.
Let’s consider these two metals at a time and point out the main advantages and disadvantages.
Start with gold. Everybody loves gold and knows that it is always appreciated and will likely always be appreciated. Gold is steadily increasing in value for hundreds of years and does not think to stop its growth.
Gold is valued in all countries and is an international currency. Disadvantages of this metal are almost absent, except for the fact that investing in the short term, you can lose your money.
Now let’s talk about the silver. Since there is a record growth of silver (last year silver was worth in 2.5 times smaller than now), many investors are beginning to pay more and more attention to this precious metal.
Compared to gold, the silver has one valuable quality: it kills bacteria of various types and is a powerful antiseptic, making the water healing.
Six months ago I got the book Conspiracy of the Rich, written by Robert Kiyosaki. In this book I read about that in the near future silver will rise in price in several times and then I made a contribution by buying a few pounds of silver as a metal account.
Robert Kiyosaki, as always, was right, because it has a strong expertise in investment and finance. Given the fact that the silver on the planet is very limited and ends, you can safely invest in this metal even at its peak value.
And one more tip from Robert Kiyosaki and his adviser Michael Maloney: the real value of silver relative to gold is 12 to 1. I think it is not difficult to calculate that despite this record growth, the silver is still undervalued in some times and in all likelihood will continue to grow.
Nowadays lots of people think of how to buy silver cheap. And they need to be aware of that besides traditional ways they can purchase silver online. Moreover, one is even able to purchase silver below spot.
Sorting out the issue of investing in gold (as the most popular precious metal), inevitably begin to be interested in the similar tools of investing money.
The first thing that comes to mind – is silver. It should be noted that the quotes of silver are moving often quite similar to the dynamics of the gold (most clearly seen in the crisis years, when the tendency of investors to protect their capital rises and therefore demand for precious metals increases).
Nevertheless, the relative price of gold and silver (i.e., the figure for how many ounces of silver you can buy an ounce of gold) is constantly changing (that is, in some periods the silver increases faster than gold, in others – on the contrary).
Now the silver relative to gold is rather cheap. A well-known Kiyosaki scares everybody by the depletion of reserves of silver in the world and the fantastic growth in its value. Perhaps, these fears are premature, but it is definitely worth attention.
Now many experts are inclined to believe that investments in silver in the long run are quite good. First of all, we must note that silver – in any case, is a reliable investment. Silver as a commodity is almost more valuable than gold, it is not only used in the jewelry industry, but also necessary in the art, for example, in instrumentation.
How can I invest in silver?
First of all, this is investment coins. Silver also is available in the form of bullions.
In addition, silver and gold can be “bought” in the form of metal bank accounts.
What are the differences between investing in silver and investing in gold in practice?
In my opinion, the main differences are two:
- The system (infrastructure) of investments in silver is less developed, so that residents of small towns, perhaps, will not be able to find the services suiting them.
- Investing in silver is more convenient for small private investors.
Nowadays lots of people think of how to buy silver cheap. And they need to know that besides traditional ways they can purchase silver online. Moreover, one has a possibility to find silver below spot.
Since the beginning of the revolutions in the Middle East and North Africa, the prices for precious metals are steadily increasing. Especially silver has risen in price: 20% from the beginning of the year.
Since late 2008, the value of silver has increased in four times already and at the beginning of April reached 37.4 dollars per ounce. Only on the basis of 2011 the prices for this precious metal rose by almost 83%. Such vigorous dynamics is associated not only with the global investor interest in precious metals, but also the fact that silver is being actively used in industry now.
But despite a record increase in the cost of the metal, the bankers are convinced that investing money in it is still profitable. Projections for this year’s price of silver remain positive. Rising prices will continue this year. According to international analysts, the price of silver may rise to 46-50 dollars per ounce on world markets. The data from the survey conducted by Bloomberg also suggest that the silver in 2011 will be a leader of the rise in prices of various raw materials.
There are three main ways of investment in silver: buying silver bullions for self-storage and buying silver with simultaneous placing on current or deposit account at the bank. However, note that the difference between bid and ask prices of small bars in the banks can reach 25-30%. And the only consignments of silver from one kilogram can be beneficial for investors in the event of a price increase to the level promised by analysts. Additional profits can be obtained by placing silver on deposit in the bank.
Silver will always be in demand since it is used in many industries and its stocks are gradually exhausted. In summary it can be argued that investing in silver is promising to keep savings in the long run.
Today lots of people think of how to buy silver cheap. And they need to be aware of that besides traditional ways they can purchase silver online. Moreover, one has a possibility to purchase silver below spot.
How can you save your money so that when you retire, its purchasing power would be fully preserved?
The only way not to lose money – is to invest it profitably, but if you buy any shares with your money, or worse – will speculate on its sale in the hope of profit, it’s likely the money will be lost sooner than if it would be eaten up by inflation. So where is the exit from this situation, how to prevent the current economic system to milk dry the last crumbs from us, often earned almost by a slave labor?
Today silver is consumed in large quantities, starting from 1942, annual demand for silver exceeds its production by an average of 25%, and the last 10 years – by 50%, and despite the fact that the current level of silver mining is in the hundreds times higher than its level of production of the past. However, what such quantity of silver might be need for?
The answer is simple – for the development of military industry (do not forget that the demand for silver has exceeded its production in the midst of World War II for the first time), and it is not surprising if one takes into account the fact that the creation of one torpedo consumes about 130 kg of silver.
How can we meet the demand exceeding production? This can be done only one way – spending existing resources. As for silver, its stocks are being decreased continuously for 65 years, and taking into account the growing demand for this metal, they will be reduced to their complete destruction. When available silver inventories run out, then, according to economic law of supply and demand, the shortage of available stocks of silver will increase its demand, which in turn will inevitably lead to higher prices for the metal, which in this case will rise in 10, 100, and maybe in 1000 times above its current price, depending on the circumstances.
Today lots of people think of how to buy silver cheap. And they need to know that besides traditional ways they can purchase silver online. Moreover, one has a possibility to get silver below spot.
Since the beginning of the crisis, all investors, bankers and governments “rushed” for the gold in all its forms. Someone took refuge from falling stock markets, some hedged against the depreciation of the dollar. This is not surprising. At all times, the yellow metal played the last refuge of the capital. The wave of rising prices for gold even brought new players-billionaires to the gold industry – a former oilman Roman Abramovich and steelworker Mordashov became to engage professionally in it.
And even George Soros increased the limits of his stock to purchase of this precious metal to $ 500 million. Today many people are trying to find refuge in gold, increasing its value. But analysts are not so optimistic in their forecasts about its exclusiveness, emphasizing that while gold is cheating them out. This cannot be said about another precious metal – silver.
Silver has always been a popular investment tool in the world markets. Apart from the inevitable speculative component, there are quite objective reasons for the increase in silver prices. This precious metal is much broader than gold: it is used in industry due to its special physical and chemical properties.
In particular, silver is used in the manufacture of electrical products, batteries, mirrors, cell phones, cars, water purifiers, photography, and is widely used in medicine. As for gold, in addition to jewelry, it is only used in microelectronics and pharmaceuticals.
And taking into account the trends in developing countries, where production, despite the crisis, is growing simultaneously with the level of welfare of the population and the demand for high-tech goods, the gap between the demand for silver and its offer in the long term promises to increase greatly that would entail an adequate rise in price of the metal. This hypothesis is evidenced by the steady population growth in developing countries such as China and India.
Today lots of people think of how to buy silver cheap. And they need to know that besides traditional ways they can purchase silver online. Moreover, one is even able to find silver below spot.
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