7 REASONS TO INVEST IN GOLD

The properties of gold make it one of the most precious metals in the world – a popular form of jewelry and gift. What if you want to invest in gold? What about gold in an investment portfolio? As we regularly monitor the price and performance of gold, here are top 10 reasons why gold has a good investment portfolio:

#1 Gold has a long history of value retention.

Since its discovery thousands of years ago, gold has been the most popular commodity in the world. Although gold no longer supports by global currencies, it remains highly precious metal, especially during the economic slowdown while other assets are losing values.

#2 Inflation is historically good for gold.

Gold has been an excellent hedge against inflation in the past, as its price tends to rise when the general cost-of-living increases. Inflation eats up cash away and treasury yields, which makes them less attractive investments. It is the main reason behind many investors are attracted to gold.

#3 The demand for gold jewelry is steadily increasing in China and India.

Gold is a precious metal and popular form of gift in China and India – the two largest consumers of this precious metal. This is one of the biggest reasons which drives the gold price always high. In India, gold jewelry ownership is highly growing in numbers. By 2016 Indian households owned more gold than the world’s top six central banks (combined).

#4 The global supply of gold is shrinking.

Gold is a very rare metal – it is another reason why it is so highly valued. At present, fewer gold mines are being explored because the gold exploration budgets are going down.  On the other hand, the mining cost is rising. As a result, the rate of gold production is decreasing and the price of existing gold rising.

#5 Global government debt is rising.

Global government debt is rising and it is around 120 trillion dollars high of all time since 2008. Due to the rising risk of such big deficits a further economic crisis could be on the way. Experienced investors can easily see these financial stats and it will increase their investment in the form of gold.

#6 Central banks are increasing their gold reserves.

Since 2010, the global central banks have been the top to reserve gold. According to the World Gold Council (WGC), in 2017 the total net purchase of gold by the global central banks was 371 tons. This is also a very good sign for gold investors that they can invest some bucks in gold.

#7 Gold and US dollar.

Gold is traded in dollars. When the value of gold increases the value of dollar decreases. Bullion and the US dollar have a long back history of reverse trading. The same thing happens with gold and dollar. In fact, the precious metal gold regularly outperforms the most major currencies every year.

If you are wondering why you should invest in gold then these top reasons can be a part of your analysis.

Yet Another Major Reason To Buy Gold…

Investing in gold is a wise decision and I have been advising you to invest in gold since last year.

And, if you have made your decision not to invest in Gold, then you are missing huge potentiality.

Humans take a few years to mine or extract gold, but it takes millions-of-years for minerals to formulate gold in the deep of the earth’s crust.

It is the continuous process for mining companies, they need to discover for new deposits. Therefore, the number of mining businesses hasn’t been increasing.

Large mining organizations cutting their investigation budgets for a considerable length of time and the investigation budget hit an 11-year low, by the end of 2016.

As a result, the gold price remains almost the same as the previous years, and this is the main reason behind disinterest of investors towards the gold investing sector.

The chart of the Gold Miners ETF (GDX) reflects the same thing what I was trying to explain, the price has been almost the same for five years.

chart of the Gold Miners ETF (GDX)

Also, the gold price was going down by 30% compared to the price in 2011.

To survive in the bad times, gold mining companies had reduced their investigation budgets.

This scenario indicated that the demand for gold will pick up again and there will be insufficient gold supply.

Surprised? Ok. Don’t believe my words!

Major reasons to invest in gold

Pierre Lassonde, the billionaire founder of gold royalty giant Franco-Nevada and former head of Newmont Mining –

“If you look back to the 70s, 80s, and 90s, in every one of those decades, the industry found at least one 50+ million-ounce gold deposit, at least ten 30+ million ounce deposits, and countless 5 to 10 million ounce deposits.

But if you look at the last 15 years, we found no 50-million-ounce deposit, no 30 million ounce deposit, and only very few 15 million ounce deposits.

So where are those great big deposits we found in the past? How are they going to be replaced? We don’t know.”

Ian Telfer, chairman of Goldcorp, who told the Financial Post:

 “If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years. Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down… We’re right at peak gold here.”

Let’s think! Gold production is peaking, and the large companies are not spending to explore new deposits, these indicate there will be a drastic change in the gold industry when the demand picks.

As a result, all miners will begin to overtake one another to accelerate their production in order to meet the rising demand for gold.

These are already happening – Telfer’s Goldcorp ($8.5 billion) company was acquired by Newmont Mining for $10 billion.

That isn’t a coincidence! Barrick Gold bought Rand Gold in $6 billion.

This is closely what we are expecting where large miners acquiring one another to fix the gold production issue. And If I am not wrong, it should be beneficial for long-term by means of gold prices.

Now, some of the biggest gold mining companies spending $16 Billion (combined) to increase their gold assets. This indicates that there is a big shortage of GOLD – It’s just started!!

Invest in Silver

Why Should You Invest In Silver Over Gold?

Is it worth it to invest in silver?

Investing is a tough game and requires a strong mindset, a sound knowledge of market stats and a decision-making ability. Without these, one can’t get a profitable outcome in investing.  If you are an investor looking to invest in precious metals, you have mainly four different options to invest in – Gold, Silver, Platinum, and Palladium. In this article, we will focus on choosing between Silver and Gold.

For investing, you need to choose an option from these two, whether you will select Silver or you will select Gold. The decision to buy gold or silver can’t be made on an assumption, it needs deeper analysis on market stats. Let’s see, where to invest in and why.

So Why Invest In Silver?

There are many reasons to choose Silver over Gold. Like gold, silver is a precious metal with a high intrinsic value as well. Silver is a form of commodity (refers to investing) and as a form of money. Not only that, due to its inherent value, silver has been used for thousands of years as a standard of exchange.

Top Reasons to Invest in Silver over Gold

#1 Demand of Silver in China | Invest In Silver

The demand of silver in China is skyrocketing and will increase continuously for the long term. Silver is mostly used in solar panels which is the largest application of industrial silver. It will be a wise decision to invest in silver because of its excessive demands in the area of renewable energy.

#2 Silver is Cheap | Invest In Silver

The most common reason to invest in silver over gold is the price tag. Silver is much cheaper than gold. You need a small budget to start investing in silver compared to gold.

#3 Easier to Liquefy | Invest In Silver

One of the best reasons to invest in silver is that it is much easier to liquefy if you want to convert it into money. Silver can be sold easily compared to gold.

#4 Uses | Invest In Silver

In a large variety of various technologies and industries you will find silver. On the other hand, you will find gold mostly in jewelry and investment industry.

#5 Smaller market | Invest In Silver

You also will find Silver used in many areas, but has a much smaller market. Silver has a tendency to swing high and low (high volatility) more frequently which can make a big difference to its price. By moving a much smaller amount of money into silver you can get nice upswings in price (and downswings too).

Silver is an affordable commodity for those who have a small budget for investing or for an average investor. The great thing about silver is that you only need a small amount to start investing. Silver is nearly as precious as gold to help maintain your lifestyle. It is well believed that you will get much more satisfaction investing in silver rather than gold. If you can’t afford to buy gold, silver can be a great option for those that want to hold precious metals as part of their portfolio.

Gold or Silver

Gold or Silver – Which is Better Investment?

Gold Or Silver – Which Is A Better Option for Investment?

If you are willing to make investments in precious metals like gold, silver, or others, the early excitement sometimes quickly transform into frustration. This is because of the multitude of availability of these materials. It is necessary to do deep and thoughtful research towards the markets to make sure that the product is best for your style of investment.

This short guide is limited to gold and silver only. After reading this article, you will be able to get a clear concept of the differences between these two precious metal – gold and silver.

Gold or Silver – Where to Invest?

You already know that the two renowned precious metals are Gold and Silver. They both provide various types of investment opportunities for investors. If you are a newbie investor, investing in these two metals may not be a wise decision.

Before making any decision you must do deep research and analysis in many sectors. This includes personal wealth, risk, market analysis and many other types of analysis. Market analysis is the crucial part of all. In this analysis, you have done product quality research, availability research, and market demand as well as price margins. The quality of the metal, price margin and the market demand will tell you if this investment will be profitable or not.

Now, the question is where to invest? Gold or Silver?

Gold and silver, both can be profitable if you have done your analysis thoroughly and accurately. There are many circumstances where you have to make a choice between gold and silver.

Let’s talk about some benefits of gold and silver.

Gold or Silver | Advantages of Gold

VAT Exempt

The precious metal gold is eligible for VAT exemption and some of the gold coins can be purchased free from capital-gain-tax. This benefit attracts investors to invest in gold in larger numbers.

Storage Capabilities

When there is a concern about holding more or less storage capacity, gold wins over silver every time. You can easily invest larger sums into small quantities due to its higher price-per-ounce and it therefore requires less storage.

Popularity

Gold is much popular than silver all over the world. It is widely used in jewelry industries to make precious ornaments. In the region of Asia and Russia, central banks purchase gold by means of investment and stocks.

Gold or Silver | Benefits of Silver

Lower Price

You will get more for your investments because of the low price tag of silver and if you have a low budget issue, Silver is the best option to invest in.

Greater Industrial Use

You will find silver used widely in different industries for a variety of purposes. The solar panel industry requires silver to produce renewable energy sources. For this reason, the demand for silver is growing steadily.

Volatile

The market for silver is more volatile compared to gold. However, it makes investors take a risk and make higher returns. Volatility gives the opportunity to invest more frequently and to gain more profits as well.

Verdict

Gold can be an option for a solid long-term investment for high-budget investors. On the other hand, Silver is great for smaller investors.

The market of silver is volatile and it can result in higher returns. However, it also loses value rapidly due to volatile price in the market. Pro investors invest in both to minimize the risk of their investment.

Whether it is gold or silver, no one can accurately suggest which one will be most profitable and which to invest in. It depends completely on you and the market stats.

Cautions: If you don’t have any experience in investing, you should be careful in bigger investments. Before making any decision, it is advised to consult with a financial advisor. There is always a risk associated with any kind of investment.