This action might not be possible to undo. Are you sure you want to continue?
Gold has been highly valued for thousands of years . Gold is easier to obtain in pure form than the other metals. Gold became used as currency and as a basis for international monetary transactions. The rarest form of gold is a nugget. The unit used in weighing gold is the troy ounce; 1 troy ounce is equivalent to 31.1 grams.
Gold melts at about 1064° C (about 1947° F).97. boils at about 2808° C (about 5086° F). and has a specific gravity of 19. . its atomic weight is 196. Gold is bright yellow and has a high luster. It is one of the softest metals. The chlorides and cyanides are important compounds of gold.3.Properties Pure gold is the most malleable and ductile of all the metals.
allowing investors to buy with confidence and sell with ease. ranging from a fraction of an ounce upward. .Markets Gold can be purchased in many forms including modern gold bullion coins and bars. . Investors can make purchases in virtually any amount. The weight and purity of gold coins are precisely controlled and standardized by internationally-recognized refiners and official government mints.
In recent years.INVESTING . gold's best friend has been inflation. gold acts as a reliable store of value because it fulfills all the functions of money. gold prices have traded down because inflation was low. Gold is portable and divisible.. Gold Keeps Up With Inflation. Gold is a long-term storehouse of value. Gold bullion and gold coins are highly liquid. gold is easy to store in an emergency and far more reliable than paper money in a crisis. Historically. . Historically.
and zinc. the United States. copper. . Peru. is a white lustrous metallic element that conducts heat and electricity better than any other metal. The silver is mined in conjunction with lead. Silver mines in Asia Minor were probably worked before 2500BC. and Australia.Introduction Silver. Canada. Most of the silver mined in the world comes from Mexico. Silver has been known and valued as an ornamental and coinage metal since ancient times. symbol Ag.
7. silver is the most malleable and ductile of all metals.5.5 and 2. Its hardness ranges between 2. and has a specific gravity of 10. . boils at about 4014° F. Silver melts at about 1764° F.PROPERTIES With the exception of gold.
utensils . tin and other metals at room temperature to make amalgams that are widely used for dental fillings Mirrors which need superior reflectivity for visible light are made with silver as the reflecting material in a process called silvering Flutes. and currency coins Silver can be alloyed with mercury. are commonly constructed of silver alloy or silver plated . high-value tableware.Markets Silver has long been valued as a precious metals . in particular. jewelery. and it is used to make ornaments.
without need of independent grading or rating .Investing Silver offers many advantages that help investors enhance the safety of their investment and security of their wealth Silver is portable. but unlike paper investments. Silver is an investment that can be made privately. Silver can be traded sight-unseen. silver has intrinsic security Silver is readily traded in a highly liquid world-wide market.
why people invest in gold? y Gold is considered as the most reliable hedge against inflation." y While it's somehow possible for Buffett to be right on the yellow metals. y With the central banks all over the world shoring up their reserves. dig another hole. I believe he was definitely right about silver because he once owned 129. y However. Every time the value of dollar declines.000 per ounce. one of my favourite investor of all time. The bad news is inflation is ever increasing and the value of our currency can only move downwards. we are talking about rich countries like India. China.000 ounces of silver which he later sold off and it ended the SEC probe on General RE. . Then we melt it down.710. or someplace. the value of gold increases. It has no utility. Russia. Warren Buffett said. bury it again and pay people to stand around guarding it. economic analysts believe that gold could go as high as $5. "Gold gets dug out of the ground in Africa. Anyone watching from Mars would be scratching their head.
Central Banks and the International Monetary Fund largely control the gold price. One more factor which controls the gold price is the demand and supply. It is effectively controlled by the exchange rate at a very point of time. Speculative market activity also contributes in a major way the gold price of the next hour.Factors Affecting Gold Prices y Factors influencing the Gold price y Most of the gold ever mined is existing in the form of jewelry and bullion etc. Thus a number of factors of the market are the key factors to determine the Gold price. y Price movement of Gold y The Gold price moves very fast throughout the world. . This basic economic activity largely controls the gold price. The total amount of gold can be traded is fixed in a ten year span. It shows different exchange values at the different part of the world at the same point of time in comparison to various currencies. They are in accessible form and potentially able to be recycled. Sometimes the Dollar goes higher and sometimes the Euro.
Even the dollar euro exchange rate fluctuation could not dampen the gold price. The demand supply curve of the metal has always indicated profitable nature of investment in gold. A pure gold is denoted as 24 karats. kt or even ct popularly.y Quality of Gold & Price y Gold is available at a variety of qualities in the market and the quality or the standard is determined as Karat. It denotes the purity standards of the gold. . y Investment in Gold Bullion y So many persons prefer investment of their fund in the form of bullion or coins just to defend the risk of inflation. Ornaments are prepared with lower karats of gold to make it more manageable and fit for the designs.
One of these things is Silver. As history repeats itself. so does silver. Currently we are in a downward cycle. Along with Silver there is Gold. If gold goes up. and can't be too sure when things will pick back up. we are able to see that during these economic downturns. Typically. Looking back. . we are able to look back and see that things like this have happened before. certain things go down. The two are very closely linked.y Why Invest in Silver? y For those of you who haven't been following the markets lately. and the economy has its ups and downs. things are pretty shaky. silver will copy/track the gold price. but at the same time. certain things go up.
The large concentrated Short Positions in silver also contributes to the price. In 1997 Warren Buffet purchased 130 million troy ounces of silver. in April of '06 iShares launches a silver exchange traded fund which is called the iShares Silver Trust.Factors Affecting the Price of Silver y There are various factors that affect the price of Silver. This is the equivalent to 140 days of production. Industrial Demand is one of the major factor that influences the price of silver. From 1973 the Hunt Brothers began to corner the market. As of April '07 it shows that the four or fewer largest traders are holding 90% of all short silver contracts. Soon after the price fell back down due to the New York Mercantile Exchange and the intervention of the Federal Reserve. 95% of annual silver consumption comes from the three main areas of industrial uses. jewelery. The total between these traders is equal to a total short of 245 million troy ounces. Some of those factors are: Private and Institutional Investors. the large concentrated short position and Industrial demand. Although silver is relatively scarce. and photography.45 per troy ounce. . As of April '08 the iShares Silver Trust held 180 million troy ounces of silver as reserves. it is the most plentiful and least expensive of the precious metals. Also. They bought enough to cause the spike in 1980 to $49. silverware.
so everyone simply accepted that relationship as an unchanging constant. That was just the way it has always been.Why is silver ss expensive than gold? y Some people will object to my fantasy situation in NK by saying that the relative descriptions of silver and gold supply and demand only describe the same conditions that prevail now throughout the world. but silver was plentiful and cheap. and the price of silver is only 2% as high as gold. The market is composed of people. Since the market is always right. . I'm not so sure about that. Through countless generations. and sometimes people make mistakes. gold must be much more valuable than silver. For thousands of years. gold was indeed more rare and more valuable than silver. Right? Well. babies would grow to be grandparents in an environment where gold was rare and expensive.
Why silver is new gold y Silver. the poor cousin of gold has been on a roll. buying silver seems to be catching on in India. Since the beginning of this year. .130 per kg. silver prices have been on all time high levels. Despite these all-time high levels. Also. and currently quote at `44. the metal has given a whopping 61% returns. Gold in the same period has given a return of around 15%.
It broke that band after a long time. which makes me bullish on the metal.y The Technical Reason: Silver moved in a band of $10 to $21 per ounce. for a long period from 2007 to 2010. .
y Silver/Gold ratio y From 1980 to 2003. silver was solidly locked in the claws of the bear. I prefer to look at the ratio of silver divided by gold because it helps me to . To get a better perspective of the relationship between silver and gold since 2003.
if the silver coinage were put into the silver bullion. which would put gold at about 3 billion ounces. the sum of silver bullion is something like 500 million ounces or one fourth the quantity of gold.Gold vs Silver as Investment y At this moment in time the quantity of gold bullion is around 2 billion ounces in bullion form. y The explanation for the debate on silver bullion is for the reason that the price for silver is placed in the Futures Market for . it is essential to realize the criteria of this information. Before moving on. the total would still remain to be something like one billion ounces. Just for the sake of consistency. and as talked about.999 fine billion. although it is undersized. will be a factor in setting the price for silver in the years that are to come. In other words this separated bullion silver is the most important not simply for the reason of setting prices but for industry as well. if you were to add both gold coin and gold bullion together. we would in addition have to include the coin back into the total. In order to make it a little more comprehensible. silver coinage does not matter and the quantity. This means that silver would remain to be less than one third of the gold supply. Without doubt. .
Silver is cheaper than gold because more silver is mined than gold. Gold is a store of wealth. Rich people prefer to buy gold. Conclusion Silver is the poor man's gold. but silver is just an industrial commodity y. but gold is best when global financial concerns predominate. Gold will rise and drag silver up with it. Swap silver for gold and vice versa when the gold/silver ratio is at extremes .s. Silver is a better investment in good times when the economy is humming.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.