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!!

Demise of the Dollar: Rush to Gold is Here       

Over the course of history, we have read about the rise and fall of empires and the transition from one era to another. Today, we see more of things like the dollar unfold before our very eyes.

The Dollar

Dollar, whenever mentioned, most often than not, the concepts supremacy, wealth, gold and the like are the first things that come to our mind. The US dollar occupied the dominant spot the world over as the global reserve currency.

Its strength lies in the fact that gold backs it. Literally yes, every dollar had an equivalent gold. The United States of America had the most significant gold reserves. This makes the US the most powerful nation early in the 2oth Century.

This hadn’t changed for about a century until the Federal Reserve started to print money without gold reserves to back it in the late 1940’s.

Then came the inflation which prompted the start of a vicious cycle of printing more and more money without the equivalent gold reserves compounding the problem.

This then led to the upsurge of the market value of gold thereby reaching the point that the US currency stopped being backed by gold. Gold price tripled, a scenario inversely proportional to the rapid drop in dollar value.

Global Currency Reset

gold

Global currency reset became the new reality, the birth of the petrodollar, a somewhat political move.

In the past, the US was the most prominent importer of oil from Saudi Arabia, which allowed them to politically have the price of oil based on the US dollar.

This necessitated all other countries to comply.

However, rapid turn of events did happen when Russia took over the limelight when it replaced Saudi Arabia as the major oil producer globally by 2017.

Together with this, China had replaced the spot of the US as it became the most prominent importer of oil recently as well.

The players of the oil market have changed, so much that they wanted to have the Yuan to back the price of oil.

As the dollar supremacy fades in the scene, the Yuan, on the other hand, is promising.

Over the years, China and Russia have been buying gold and now decided to use it to back the Yuan.

This is a game changer. Other countries are set to reconsider as the dollar had gained $123 trillion in debt rather than gold reserves.

Many other nations have followed the game plan of Russia and China.

In fact, European countries such as Hungary and Germany had fortified their gold reserves. Others followed soon, creating a hundredfold rippling effect in a global context.

Indeed, this is the most profound financial change. Today, in the oil market, the dollar is joined by a basket of currencies including euro and the yen.

The dollar is slowly losing its global position in contrast to the gold becoming more significant in the global market more than ever.

This is “gold rush” in a different perspective.

gold

How Cryptocurrency Plans Entice Investors Back to Gold

Gold is best-known for its universal value. Time and again, various nations sought the help of gold when times were tough. For instance, if there is currency devaluation in a particular country, the government would turn to gold for their alternative IOU for the time being.

For many years, people had considered gold as one of the most desired investment assets in their portfolios due to its relatively high intrinsic value. However, since the emergence of cryptocurrencies, gold had been held in the hot seat.

Since then, people had been questioning whether gold is still the best form of investment in the market. For quite some time, metal enthusiasts had stayed loyal to their path, but ever since the price of gold has stagnated, many people started to cling to cryptocurrencies.

The demand for precious metals may have risen, but so did the supply. In that sense, when the supply is up, the value of the asset can potentially go down or stagnate.

Meanwhile, Bitcoin as a cryptocurrency with limited supply can potentially increase in value in the next five years or so.

The year 2017 ended with many people thinking that gold and cryptocurrencies can only become rivals. But now, we see that these two assets can potentially work together to create a better investment opportunity for everyone.

Perth Mint to Utilize Cryptocurrency to Put the Spotlight Back to Gold

Perth Mint, Australia’s biggest refiner, has decided to develop its cryptocurrency that is backed by gold.

This genius plan is directed at giving customers ease in buying gold by integrating blockchain technology into its system.

As you are aware, Bitcoin technology focuses on creating a public ledger for its users. Perth Mint had stated that it intends to use the same technique. However,  this time the strategy will focus on gold purchases.

Since the inception of the blockchain technology, people had used Bitcoin as a channel to enhance and broaden the usage of various sectors such as agriculture and land registration.

With that, Perth Mint Chief Executive Richard Hayes is convinced that it can take advantage of Bitcoin and use it to bring back investors’ attention to gold and other precious metals.

Hayes believes that the primary reason more and more people are clinging to Bitcoin, and other cryptocurrencies are that in this time of modern technology, individuals are looking for alternative offerings outside the traditional methods.

However, Hayes saw a flaw in the cryptocurrency system. Despite the new and secure method of transactions, digital coins remain to be a volatile investment.

Meanwhile, by creating a new cryptocurrency that can work hand in hand with gold, people may just find the solution to their worries.

Cryptocurrencies may be producing a lot of money for some people. But many people will still see it as a risky business.

By creating a cryptocurrency that precious metal can back, people won’t see cryptocurrency as an obscure investment. What they will see is the gold that is supporting it. In that sense, cryptocurrency and gold work for each other, instead of against each other.

Taking A Look At The Gold Stock Management Software

Inventory management use to be a tedious task even centuries ago when gold stock management was a high paying job. There were paper and ink for most of the record management tasks and probably some other tools that historians can help us know better. In any manner, the task is humongous even today as time has become more precious than ever. You cannot afford to spend 6 hours a day calculating the total number of gold stocks at your reserve. What if there were errors in the calculation? What about the convenience in making these calculations over and over again? Perhaps our ancestors didn’t feel like it back then.

But today, things have changed. And, this opportunity has been utilized by many renowned players in the market such as marg, tallywale and more. There is more than just counting to inventory management.

What kind of help can the gold management software do?

As with any software, it eases the bunch of calculations you would like to do. These programs, as mentioned above, are not mere counting assistants. They help in supply chain management, category management, merchandising and much more. In some cases, your entire business might depend on using the right piece of code. This is completely different from dealing with the price of gold or silver tomorrow.

This works today and will continue to work for the future. In some sense, it acts as the feeding ground for the future prediction machines and tellers. You can find more information about them in related articles. Transforming your business can help you go further. Depending on various aspects of your business starting from lending, borrowing, staff, designers, workers, purchase or sell, there is everything in a good software package.

When you are working with domain-specific software, you have a lot of data and tools built-in such as price forecasting tools that show you real-time information. You can find the exchange prices in real-time, the surcharge, the making charges and much more. This can be the root of your billing software that works on the other end of the line. It works for online sales and purchase.

What are certified gold assets?

Tasks have been evolving rapidly in the IT field – having an online business, ticketing and invoicing is a common task. Keeping everything online in the cloud and having secure communications between your inventory and real-time assets is very important. There are software services that enable such services at the click of the button. To help enable such purity and authentication global councils and standards bureau have set some policies. Together they help determine the validity and the authenticity of your assets.

Before you make your purchase of a inventory management application, going through such standards bureau is very important. A detailed record processing program helps a lot in keeping every bit of information on starting till endpoint of your order safe. Today, more than a dozen organizations offer certifications and policies for anti-fraud dealings as online deals are more vulnerable than ever.

Future Of Silver Price Outperforming Others

Commodities like silver and gold are unlike any others in terms of the silver price future and its long-term demand. The straightforward comparison tells us that despite being aged, their charts keep going higher in comparison to any other kind of assets. In essence, they are actually considered as valuable assets since the beginning. Other items, irrespective of their costs and present value degrade in response to these. And, that is why it is important for companies to spend money in developing prediction tools or forecasting tools. They enable the common users and investors who do not have any economic background to easily understand the silver price trend and take actions. These actions may be short term or long term, themselves, but have long-term impacts.

What do silver future tellers do?

These machines are number crunching machines. They will take in inputs like millions of records from the past and output the prices in the future. This sounds cool and pretty useful, except that building such tools is a cumbersome task. You can find several companies that have dedicated their resources to make their predictions more accurate and reliable. Now, such machines need a lot of power and data, and this is what makes one machine different from another. One, teller can do better than others. One can make a forecast into 10 years in the future, while another can do the same for up to 15 years. Others can do up to 5 years, but it is much more reliable and accurate than both of them.

Thus, tellers or prediction machines also have their limitations. And, this is where domain experts come to help. They can help in understanding how and why can one metal outperform other? How long will such impact stay? And, so on.

Taking clues from silver price future prediction

Every small and large ripple results in useful clues for tomorrow and the future. For example, in 2018 UK and USA markets saw a decline in investments from Japanese firms. This was contrary to the increase in the global stock market in the same year as compared to the previous one. The results are accredited to the decrease in fixed asset investments. The industrial commodities fell, but major government bonds received a lot of attention. These events have an impact on prices or ratios of different precious metals like silver and gold. While gold price were affected badly, the silver may not be so. As we saw such an incident on the commencement of the New Year, the same provides a clue. This clue shifts the attention towards major changes when the events are just scaled higher.

There is a significant impact from mining regions. Gold reserves across the world are the same for the white metal. Similarly, macroeconomic and political policies across producers and investors impact these tellers or machines.

In order to create better forecasting, a lot of factors get into action, and it is no surprise that a current expensive gold can underperform the white metal sometime in the future.

 

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.

 

gold

Top 2 Reasons Why You Should Invest in Gold

Because gold has a recognized value worldwide, it had been used as a universal currency dating back to the Byzantine Empire.

However, upon the signing of the Bretton Woods Agreement back in 1944, the US dollar has replaced the gold in being a universal currency. But that didn’t stop gold from being a valued asset. It may have ceased to be a currency but not a store of wealth. However, many developing countries still used it as a backer to their devaluing currencies. Many years have passed, and gold still remains a priceless treasure.

When Richard Nixon removed the gold standard in 1971, other countries followed suit. It may have been erased from the memories of many people, but even when it was no longer a currency, it retained its value by being an excellent investment form.

With the rise of new investment instruments, some people would ask if in today’s modern era, is gold still considered a valuable investment? There are lots of reasons why gold makes for a significant investment. Two reasons are:

1. An Excellent Getaway from The Paper Currency Experiment

The fiat currency which we have all believed to be the ultimate form of money is only an IOU. Meaning to say that it is a representation of a particular credit that countries are issuing. The paper money phenomenon first started out as an experiment. Eventually, when society became more accepting of paper money as the standard of financial systems, many government units have lost control of the economy. And, thus, they resorted to printing massive amounts of money. This, in turn, resulted in hyperinflation.

Hyperinflation has happened time and again in the past. For some people, it may be best to leave the past behind. However, you can’t ignore the saying “history repeats itself.” With that in mind, one factor that makes gold an excellent investment is that it can serve as a replacement for fiat currency.

People may refuse to accept paper money as payment if your currency has been devalued. However, they will always take gold because it is the single asset that has value all over the world.

2. The Relationship of the US Dollar and Gold

There is no denying that the US dollar is the leading currency worldwide. However, just like other fiat currencies, the US dollar also tends to fluctuate through ups and downs.

There is an intriguing association between the US dollar and gold. When the dollar is at a high value, gold appears to be heading towards that direction. However, when gold is purchased at favorable prices, the dollar also goes up in value. Meanwhile, when the dollar has low value, the price of gold tends to go up.

The US dollar is currently at an all-time high. But instead of waiting for a currency fluctuation, you’d rather start investing in gold. That way, when the dollar swoops in value, you will have an excellent exchange for gold.

To Buy or Not to Buy

The main goal of investments is to increase and protect one’s wealth. The topics discussed above cover the primary reasons why gold is people’s go-to when it comes to financial problems.

 

investing in gold and silver

Investing in gold and silver. Why do we invest?

Why do we invest? As elementary as that question is, the answer is worth restating here: we invest to secure our money and to reap interest on the initial investment.  There are many investment vehicles.  Some are: stocks, crypto-currency (Bitcoin for example), real-estate, bonds  and precious metals (gold and silver). Investing in gold and silver may be a smarter way to invest.

All of the fore mentioned investment vehicles have historically grown in value, thus allowing an owner in any of the above to earn money on the initial investment. However, Bitcoin has dropped sharply and is a very volatile investment. Also, of concern, other Crypto-currencies like Bitcoin have failed altogether. Names such as SpaceBIT, Gems, DogeCoin, & Dao have gone away in a blaze of notorious fire for the history books. Likewise, however, under authoritarian governments, access to trading stocks and the ability to own and profit from real-estate has been historically unsafe.

Therefore, it’s necessary to think of investment vehicles as being a unit of two components: profitability and safety.

A particularly unique thing about precious metal investments such as investing in gold and silver is that they are portable investments. Unlike real-estate where you must secure the location you own, with the help of local police or otherwise, Crypto-currencies where you must have access to an internet source, or stocks where you, at this point, require access to an internet source to trade, precious metals can be secured and moved and still retain the value that those precious metals have.

When it comes to the safety aspect of investments, it’s hard to beat investing in gold and silver. In the worst case scenario where all investments besides precious metals have become unsafe or impossible to use, you’ll likely be protecting your precious metal investment by merit of your ability to protect it physically. No other investment vehicle allows you such flexibility with regard to safety of your investment.

When you go back and examine the profitability component of investment vehicles, even while being very safe, precious metal holds its weight against all the other competitors with gold yielding over a double increase in value over one hundred years such as seen in the info available on this website here:

http://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

Comparing several investment vehicles with respect to the criteria of safety and profitability, investing in gold and silver as precious metals comes out as the best investment. It contends well with other investment vehicles with regard to its profitability while being totally unbeatable with regard to safety of investment.

Lastly, gold and silver prices raise considerably during times of turmoil when safety in other investments are in jeopardy. In uncertain times, money from other investments, and bank accounts are poured into precious metals to secure money. Thus, given this is being read in a time of relatively low turmoil, it would be irresponsible of me not to mention that you’re likely getting a bargain price on precious metals. That historical trend is worth considering when investing in gold and silver and will likely be discussed on this site another time.