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Is It Wise to Invest in Gold or Silver in 2018/2019?

When is the best time to invest in gold?

By James JacksonPublished 5 years ago 2 min read
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Is it a good idea to invest in gold? Historically, it has turned out that gold is one of the most popular instruments for investment. Investors account for up to 40 percent of the total volume of purchases of gold, for jewelers up to 50 percent. During periods of crisis, investors, hedging the risks, increase investments in gold. While at times of stability, demand for jewelry is growing, which encourages jewelers to increase their output. The combination of these factors makes the demand for gold steady and stable, which increases the role of the precious metal as a tool for preserving capital.

Is it wise to invest in gold now?

When is the best time to invest in gold? The gold is considered one of the most reliable assets since it has absolute value and is recognized by all financial institutions and governments as a means of saving, also gold mining is regulated at the state level.

Gold rises in price during crises, so it is sometimes called a refuge for the investors and this is its undoubted advantage. Therefore, different types of investments including gold mining investment can be considered as protection from financial crises. Many banks and investment funds acquire this asset as a hedge of risk.

The Other Advantages of Investments:

  • High liquidity of any instrument, whether it is a gold bar or a share of a mining company.
  • The ability to diversify in the gold market through the use of different tools.
  • Assumes growth in the long term under any economic situation.
  • Low entry threshold.

Is it wise to invest in silver?

Silver is a precious metal, which is always inferior to gold in the precious metals market. Of course, the market value of silver is about forty times less than the value of gold, but it this indicator can’t separately influence the investment attractiveness of silver.

If we consider silver mining companies to invest in regarding the terms of their investment attractiveness, then it is worth noting the following aspects:

  • The volume of silver deposits decreases over time, which certainly leads to an increase in the market value for this precious metal.
  • The volume of consumption of silver is not reduced. It’s still actively used in industry, medicine and many other spheres of the national economy.
  • Despite the fact that gold is often used as a payment medium, do not forget that silver is also endowed with this function.
  • The price of silver is less affected by fluctuations in the foreign exchange market than gold.

Investing in Gold Mining Companies

Modern trends in the market force investors not only to plan the investment process in detail, but also use combined investment methods such as investments in gold and silver mining, investments in ingots and coins, investments in gold and currency, etc...

Except for gold mining investment opportunities, there are various forms of investments in gold. The traditional ones are buying ingots, investing in commemorative and investment coins, opening an impersonal metal account, investing in jewelry gold. Still, the gold mining industry remains the most reliable and demanded investment option nowadays.

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