High precious metal prices are definitely not one of the situations where you should be making your move and investing in them. The reason why that is the case is because of the fickle markets which could cause you to not lose money, but just wait for a long time on any kind of positive return on the investment. Majority of us have thought about making investments in precious metals, and if you have been thinking about it, and you maybe even decided to invest your money, the least you could do is make sure that you do it properly.
First let’s make one thing clear, when you are investing in precious metals, do not think that what we’ve said just now means that the precious metals could somehow lose their value completely and that you won’t have any kind of money at all. That’s not what we were saying. What we are saying is that precious metals do have its ups and downs, their value oscillates with the markets and if you’re not careful enough, you could end up with a not so very favorable purchase, which is something that is possible and could happen.
Buying precious metals when their price is high is not a good idea. After you do something like this, you’re gonna end up with an investment that’s very expensive. One of the reasons why you should be interested in precious metals when their prices is low is because if their prices was high and has come down, the chances are good that it has the capacity to go back up again. That’s precisely the reasons why you should be doing this type of investments in precious metals when their prices is low.
A lot of you are now probably wondering how can we know when the price is slow, well one way of doing it would be by checking to see just what kind of history the price of the precious metal that you’re interested in buying has. For example, if you were looking into gold, it quite recently experienced an incline in it’s prices and investing in it now is quite a bit more expensive than it was a few months back. One of the things that you could say about the investment would be that it’s gonna be more expensive now, than in the past.
So should you be investing in gold now, when the price is so high? Well there are some people who say that you should, another thing that you need to take into account would be what’s being said on the market about the behavior of a certain precious metals, for example you need to check to see just what kind of things people are saying about gold, if it’s gold that you’re planning to invest in. The reason why you should be careful, because if you’re not, the money that you’re investing in could be tied up in the investment for a long time if it goes down, so be very careful when investing in precious metals when their price is spiking, it could mean that you’ll wait for a long time before masking a return on the investment.
Mass of the precious metals that you are investing in is very important, because with gold, if gold is what you are investing in, is very expensive. I’m sure that this is not something which you haven’t heard before, pretty much all of the precious metals that exist are very expensive, they are so expensive that even the slightest discrepancy in the size of the precious metal that you are investing in will cause you to lose money, so make sure that you have precise weight of the precious metals bullion bars and coins when you are investing.
Majority of professional precious metal investors are gonna be straight up and not try to cheat or scam you in any way. But if you happen to come across some shady dealers, and just because they offer you lower prices for the precious metal that you are interested in investing. In those types of situations you have to be very careful about what kind of weight the coins or the precious metal bars are gonna have.
Best way and pretty much the only way of how you can weigh the precious metals precisely when you’re buying them would be by using a scale, but not just any scale. Best type of scale that you can use would be a digital scale, which can read out the weight of the items without us having to determine where the scale is, which is what we would have done with old “analog” scales. Digital isn’t the only thing that the scale has to be in order to be good.
The second thing that you need to make sure it that your scale has is accurate. Scales which you should be focusing on the most would be the ones that have grams, in other words the ones that can measure as smaller unit of weight as possible. It would be preferable that you find a scale that can measure miligrams, since it can come in handy when you for example need to measure the damage of testing.
Next to the danger of being cheated with lower weight of the precious metal coins or bars that, excessive testing could also cause problems where miligram scale could come in handy. One of the most widespread ways of testing for the authenticity of precious metals like gold, silver, platinum and palladium would be scratch testing. As you may have noticed we did say that these are scratch tests, and in order to test precious metals like these they actually have to be scratched.
Precise scale here is very important because it’s gonna allow you to check just how much of precious metal weight has been lose due to scratch testing. Even though to actually lose a gram it would have to be some very rough tests in order of the precious metal that are being tested to be affected by the entire processes. With a precise digital scale you can check to see just what kind of weight the precious metals which you are interested in buying have. Next to quality testing, making sure that the weight of the precious metals that you own and are interested in owning really is what you and the seller have agreed it will be, only then go through with the sale.
Precious metals are one of the best ways of how you can spend your money, any excess money that you happen to come across after selling something or after inheriting money, which is something that’s a far more possible to happen. The main account of precious metals will be used for gold and pretty much everything else that you can see for all the other precious metals will gonna gonna into this mix. Radios are a great way of how you can keep up with news, and being informed about the precious metals which you have invested in very important, unless you are using a broker.
Most people will use a broker, a third party which is gonna do everything for them, and the just need to get paid the excess caused by the change in the price of the precious metals that was invested. One of the main drawbacks to using a third party broker would be that you don’t have to worry about any of the work from actually finding the bullion or jewelry of the precious metal that you’ve decided to invest in, to actually taking care of the investment, dealing with gold, silver, palladium or platinum gold bar and coin. Storing and so on. If you actually decided to take are of the cube somewhere else.
The drawback of using a third party middle men would be that they are gonna take a cut of course. Given that in the world today there’s no such thing as free, there’s hardly anything that you can come across that’s gonna be free, so if you are interested, a certain fee is gonna have to be paid to the middle man. This free will of course not be something overly expensive, but it does exist, and if your not careful, it could eat up a lot of the profit that you make off of the precious metals.
Managing the precious metals investment on your own also isn’t something that’s very easy, but if we are talking about maximizing the profits, then you need to make sure that you invest on your own. Inform yourself about all the ins and outs of investments and then once that the time actually comes to make an investment, the markets are favorable for investment, precious metals are acceptable, then do it, buy low, sell high and make a profit, it’ll be more than when using a broker, if done properly of course.
One of the most frequently repeated things in the world of investors would definitely be the saying that precious metals are incredibly safe thing to invest in, and that no matter what you do you should always make sure that some of your investments are tied to precious metals. The actual rule goes, and it is a rule according to some, that you should have at least 10% of your money, or your investment portfolio tied to precious metals like gold, silver, palladium and platinum, while the rest should be invested on other commodities that are available out there.
A lot of people are confused with this number, after all, if precious metals really are such a catch and they are a good thing to invest in, why is that when someone wants you to only invest 10% of your money, instead of for example all of it? Well the answer to this question is a bit more complex, and it requires you to know about some basic relations between precious metals, and its relation to the economy, because believe it or not, everything is connected, everything has effect on everything in today’s economy, the same thing is true for precious metals.
We’re gonna be talking about gold but the same thing that we’re gonna be saying about gold is completely the same for pretty much every other precious metals, not that there are that many of them. Gold investments are a very smart thing to do, primarily because of inflation. Many people thing that investing in gold is a good thing because of profits that they are gonna make, and while that is true, as of recently investing in gold has shown to be the most effective ways of how you can preserve the value of your money.
As majority of you on the east coast probably know, investing money in things like the cars, or houses simply does not guarantee any kind of security of your money. Nature can come in every day and take it’s toll. If you had for example taken the same money which you’ve decided to invest in an additional car or in house extension, you would have ended up with owning gold, for example. Now with gold your money would be more secure than if you had become an owner of a car, but there is a such a thing as owning too much gold also, and it could affect the time it takes for you to make a return on your investment.
For example, take note of the fact that the price of gold has halved significantly a few months ago. It has gone down for over 100$ per troy ounce, and if you had tied all of your money with the investment into gold at that higher price, the one that was right before the drop, well then you would either have to leave that investment to sit there and wait for the gold price to recover, or start selling gold at the lower price and actually start selling at a lower price. Same situation is pretty much now.
Currently the price of gold, and pretty much every other precious metal is high. If you used up your entire investment money into a precious metals, and the price of it goes down right after. You can’t count of any kind of quick money off of the investment. And considering in what kind of world we’re living in, making quick money is a must. That’s why it has been suggested that you only invest with 10% of your money, and that if you are going for more, that you prepare for waiting for a return on your investment a bit longer.
Fickle prices that precious metals have, it’s the main reason why you can never rely on precious metals for s quick and stable investment, but then again isn’t the same thing true for everything else? Pretty much every stock bears a certain risk, sure you can minimize that risk, but you can never be entirely sure. Same thing is true with gold and other precious metals, only since it’s such an expensive investment, the markets are warning up to be careful, so be extra careful, and if you know what you’re doing, you don’t have to abide the 10% of the investment portfolio rule.
If you are looking for a good silver coin to invest in, silver because it’s within your price range, then you should look into the Silver American Eagle, because it’s one of the most attractive silver coins out there. Beauty isn’t the only reason why investing in this precious metal would be a good idea, the other more important fact would be that you are converting cash into bullion, which is gonna be protecting your investment from the influences of inflation and other currencies devaluations which are a sure thing to happen during an economic crisis.
Precious metal investments are always a great thing, and silver is especially interesting because it’s very attractive for people to invest in it. When it comes to dealing with silver you do not have a lot of money, since it’s very cheap. American Eagle Coins made out of silver are .999 pure, and since a lot of us do not have money, due to the devastating economic crisis which has been happening globally, which has left a lot of us out of with lower paying job, or without any kind of job at all. in this situation, when you are not experiencing a large cash flow, then silver is the great choice, it’s practically the only choice that you can make.
Silver American Eagle is a great coin to invest in. Precious metal premium is only a few bucks, and even with it, you can pay around 40 dollars for a 1 troy ounce American Silver Eagle coin. Having an actual precious metal in your hands is a great way of how you can make an investment in precious metals, which is like we already said always a good thing to do if you are planning on making sure that you do not lose the value of your dollars, and also in the process you make a profit, which could very well happen if we are to listen to the precious metal analysts which are predicting a very interesting future for all precious metals, especially those that are very much so in demand. Investing in the Silver American coins is easy, you can do it offline or online, or you can visit OC Cash for Gold for example, to see what we have to offer. Try us and see.
Recently we talked about how silver is a great investment to make if you are interested in owning precious metals without spending a lot of cash that investing in either platinum or gold involves, even if it’s just a little bit, silver is the precious metal for you. Due to the fact that the price of silver is small and that there just isn’t any kind of major interest in this old precious metal, the price hasn’t hasen’t got any kind of major jumps like the price of gold has. Keep in mind that the price of gold has seen rises in thousand dollar amounts, while silver only about 10$, 20$. It’s true that for the price of silver this is a lot, but such small increases has left a lot of people wondering, will the price of silver increase in the future, and how much?
The good news is that pretty much all of the analysts are predicting that the price of silver is gonna be going up in the very near future, and it’s gonna be going up because of the fact that silver at the moment is very undervalued when compared to gold. These two metals have always been together, they’re are one of the oldest precious metals that we humans have discovered, and their value has always been connect to each other. When the price of gold went up, the price of silver followed, but in the recent years price of gold has been going up much faster than what the price of silver has, which is main cause for all kind of predictions and rumors for the price of silver, all of them mainly saying that the price should be going up.
When it comes to the amount of dollars that have been predicted for the increase of the price of silver, there’s a lot of different numbers being said by people who are familiar with these types of things, but the one that’s most interesting would be 300% price increase of silver. As you can see, it’s a quite a lot of increase for the price of silver, if you were to invest in it paying current prices of silver, then you’re gonna be looking into making a quite a lot of profit, since at current prices of silver you would be paying around 35$ per troy ounce, then later on, if the price actually does increase for the predicted 300%, you’d be making 105$ off of every troy ounce of silver that you sell, neat huh?
Of course, the actual numbers are gonna be a bit more different, because we here didn’t take into account premiums, but it should be somewhere very close to these numbers, if you’re lucky the sale price is gonna be even higher, which would mean that you’re making even more money. For this reason, investing in silver is a very good idea, as you can see you stand to make quite a profit. Even if the prices doesn’t go up or it doesn’t go up the amount that we said it’s gonna go up, you’re at least gonna be protecting your wealth from being eaten up by inflation. This alone is enough for you to be making investments in silver, because with inflation, if you keep your cash in the bank or as the proverbial French peasant did, under the mattress, then you’re actually losing some of it each day, even though you’re not spending it on anything.
This is one of the main reasons why you’ll be needing to make sure that at least some of your investment is in something else, it doesn’t have to be precious metals, it could even be real estate, but be very careful with that one, since you’ve seen how things played out during the 2008 housing bubble, which has happened to the markets and caused a lot of people to lose their money once that the value of houses plummeted. Silver isn’t in this type of danger, because as a precious metal which is both valued a lot by a lot of different people it is also relatively scarce, not as much as gold or platinum, but it is to a certain extent, and if you’re gonna be interested in keeping the value of your investment, then it’s time for you to start looking into precious metals, and silver if you cannot spend a lot of money on the investment.
China’s growth has been increasing rapidly for the past few decades and it has been going faster and faster over the last few years. Because of that fact, that development has been happening at never before seen levels the Chinese economy is demanding more and more resources in order to feed the ever increasing number of industrial facilities where practically everything that’s being used by the people of the world today is being produced. For this reason, it’s quite possible that China causes an increase in the price of silver in the very near future.
You might not know this, but silver is a very valuable precious metal which is being used in a lot of different places in the industry because of it’s amazing physical properties. Pure silver does not tarnish, and has one of the best conductive properties of all of the precious metals out there, and of course base metals as well, since majority of base metals are much poorer conductors of electricity.
Since the industry is growing, and since silver is needed for the production of the ever increasing amounts of electrical devices, which need silver in their circuitry and parts, or in other places in industry where the demand for silver is increasing all the time. For now the entire demand for silver is relatively covered by the production, but due to increase in the production of products where silver is demanded, it’s very possible that you’re gonna need a lot more of this precious metal in order to cover the demand, so make sure to give silver a try as an investment, it does have an interesting future.
More and more countries from the European Union is starting to have problems, and this is something that more and more people who are interested in dealing with precious metal should take note of. The reason why people should take note of that is because of the fact that a lot of people are not turning away from the usual investments in stocks or gambling on currency, and they are actually switching to investment in precious metals, most notably gold, whose price is expected to rise on the winds of the economic troubles in Europe.
Even though media has been quieter recently when it comes to Greece, Ireland and Portugal, things are not going that great over there either, and the question is how long will there be before the next big crises hits the EU. Prospect of another Greece type situation that is looming over Europe is causing investors to once again start switching their investments away from economy and into precious metals, which are offering a lot more security, they are a lot less risky.
Recently we talked about the prospect of precious metals prices decreasing on the news that the economic situation of the world is improving. Since the Greek crises has been dialed down, the investors found more confidence in the European economy and have started to invest more in stocks, businesses but chances are good that due to the latest developments in previously mentioned countries, things will have a turn for the worse once again and that’s why platinum prices are already on the rise, while that of gold has stopped its downward trend and is not flatlining.
Maybe there’s a chance that crisis in Spain will not be as bad as that in Greece, since the situation is different, economy is stronger, just a few years ago Spain had budget surpluses, but in case that EU will be forced to bail out Spain, or do something similar to it, like it was done with Greece, and if after Spain Portugal starts suffering from the same symptoms, well then that could mean a rise in the prices of precious metals, all of them. For now the things are not bad enough to be causing more significant changes in prices, and our previous predictions of gold hitting the 1000$ low might still come true, but all this depends on how things play out in the EU. Bailing out of countries like Spain and Portugal would be a big strain on economies that are currently on the road to recovery like Germany and France which are responsible in part for the recent reports that the global economy is showing signs of slight recovery.
If those countries were hit with another burden, which will be considerably bigger than that of Greek bailout, then their economies will also experience a turn for the worse, they will show negative figures and once again precious metals will be the safe haven for investors. That means another price hike up. The only question which remains is when will the situation escalate for this to occur, maybe this will be the thing to cause gold to cross over the 2000$ per troy ounce mark, but that is predicted to happen at the end of the year, will by then gold go down? In any case if you are a precious metal investor, don’t make any major decisions for now, and see how things play out.
Each day we are facing with less and less precious metal which are available for extraction from the Earths crust. For this reason looking for precious metal deposits is of the utmost importance because in case of a situation where no new discoveries are being made of the precious metal bullion, well then the situation is gonna be horrific, horrific for the price of precious metals that is, and if you are an invest, this is something you should take note of, because it’s very important to do so.
The impact of the explorations going bad or not happening at all can be noticed on two different levels. For example when a mining company invests money into exploration of new precious metals deposits and fails to find them, well then there will be an increase of the price of gold, but the stock price of the mining company will not experience the change in the price of gold, in fact it could be that the price of stocks will have a nose dive because they’ve squandered their investments and got nothing.
When the price of gold is low and is decreasing, well then the profits of the mining companies are not that great and they are not in the position of spend some of their profits for exploration, they have to cover costs of current production and everything that’s related to it. As an investor you can use the news about cuts in exploration as a sign that the price of gold will be on the rise, but also as a sign that the current price of gold, the price that has been leading up to the decline in the amount of funds being used in search for new deposits, that that price is low and it’s a good time to be buying gold.
When you look at the mechanisms which are behind these kinds of precious metal price fluctuations you’ll see how tightly everything is connected and how as an investor you have to monitor a lot of different gears, wheel and what not in order to stay afloat and make a profit. Low price of gold can be caused by a lot of different things, sometimes even good things, for example, thriving economy can cause a decline in the price of gold.
Considering how costs of the production are only getting higher when you take into account that it’s necessary to dig deeper in the ground for precious metals and larger amounts of ore have to be processed, it’s not that far fetched for cuts in exploration to become a reality, because mines will probably wanna stick to what little profits that they have. Once the news about this predicament that the mines have reaches markets, there will be an increase in the prices and once again the mining companies will be in the plus, given enough time, and new exploration can start once again.