Gold and silver are two precious metals that are highly valued due to its price and retail value in the prevailing market. This is ascertained to be a far stronger currency than any fiat money combined. Now, would investing in these two metals be worth it in the long run? Logic would tell you the answer.
Strategically speaking, people would typically invest in silver and gold for two reasons – they are on the lookout for the prices to continue escalating or they strongly predict that other investments would depreciate in value. The price per ounce of American Eagle gold or Kruggerand have plummeted over the years. If there is one investment that can’t go wrong – that’s gold and silver. Gold has been the alpha and leading for many years while silver prices come second. Yes, the good news is that the prices can still go up.
Gold and silver are not just for beautification or aesthetic purposes. These precious metals are gorgeous and can be worn as jewelry; but aside from that, these also have wide industrial uses. A gold coin can gather dust but can also either gain or lose value at the same time.
Are Gold and Silver Good Investments?
Is there a risk involved with investing in gold? This actually depends on your appetite for risk. Fact is that precious metals like silver, gold, and platinum move opposite of the market values. So, if there is a drop in the market, the value of gold tends to increase as well. The only way to avoid losing your precious investments is to diversify or doing a mix of bonds, stocks, and commodities.
With investing in gold and silver, you first have to determine if there is in fact a ready market for it. Well, that’s because selling gold or silver is not as easy as selling your shares of stocks. First off, you will need someone to evaluate the metal’s condition and then look for a buyer to negotiate prices with. You can opt to melt the gold coin but it can be illegal in some countries.
Gold and silver can increase in value due to scarcity of resources. Hence, the prices may continue to increase over time. This also follows the law of demand and supply. The value and price of gold and silver may also shoot up or appreciate as the demand intensifies. As more people want to purchase these metals, the demand also goes upward.
Any business that will generate the most revenue is definitely worth running or owning. Profit is just one element of success. If it’s just a one-time sale then that doesn’t translate to success yet. Loyal clients who may often refer you to their network is the best predictor of success. What is the best metric of business success? Most CEOs would say profit or the money you rake in. This works similarly with the value of gold.