SILVER AS AN INVESTMENT OPTION
Silver is considered as a poor man’s gold whereas gold investment is for the rich man.
Silver is a better investment in a bull market but gold is best in a bear market
Silver is cheaper than gold because more silver is mined than gold
Supply of silver has always been in abundance while gold availability was scarce
Gold or Silver – Which is better?
Both the metals have given phenomenal returns over the last few years. But silver has given better returns than gold during a precious metals bull market.
In fact, silver rose by 3 times whereas gold doubled in the same period. Silver also has more industrial applications than gold does, with more uses being developed.
As individuals, your heart might opt for gold but a sound investor will select the white metal.
UNDERSTAND THE MARKET TO PREVENT LAMENTING !
While gold prices touches a never before all time high and the governments have bailed out their banking systems by providing enormous loans and special finance arrangements and to balance those activities either by borrowing eye-watering quantity of money or like printing of money to a smaller quantity is undergone, which they refer to by other names such as 'quantitative easing'.
If the government creates more money, the true value of money falls and in turn the Inflation increases. Even though certain commodities, apart from the fall of money value, tends to keep its value such as land, Gold, Silver and other precious metals which are valuable may promisingly pay at sometimes in the Future.
The news media has an obsession with the price of gold and appears to take delight in reporting the ever-increasing price, but they don't report other precious metal prices such as silver.
Silver is no longer the metal that's used for making fancy teapots or candlesticks. Silver is an industrial metal, used throughout industry. Large quantities of silver were used in the photographic industry for the production of film.
In the world of digital cameras and mobile phone cameras silver may not be needed for film, but its industrial uses are increasing which means that demand has not fallen. The Silver Institute website has extensive information about silver production and demand.
Investment markets
Many people know to their cost the meaning of 'negative equity', a term coined to describe the fact that the value of a house is below the price that the buyer paid.
In this post-financial-era investors cannot help but realize that the value of their investments can go down as well as up. In the same way that house buyers have been caught holding properties that have fallen in value, so some buyers of other investment commodities have bought at the top of the market.
There can be no substitute for careful study of the market, watching prices, reading different views and thoroughly researching your chosen investment medium whether it's gold, silver, property or artworks.
Knowledge is the key to successful investment. Some would say that buying at the bottom of the market and selling at a higher price is simply a matter of luck, but some investors seem to have the knack of repeating their success, which means it's not entirely luck.
What successful investors have is dedication. They know their market and keep abreast of developments which means they are ready to buy or sell at the appropriate times.
Anyone who expects to simply buy precious metals today and sell at some unspecified future date is likely to be disappointed and be left with no profit or even a loss. Our advice to investors who intend to invest a substantial amount in precious metal, such as silver is to understand the market well or stay away.
Personal purchases
Silver coins and small silver ingots ( A metal bar ) are a relatively inexpensive way of purchasing silver. Everyone should consider owning a small quantity of gold or silver in the same way that everyone might own a watch. It's useful, a pleasure to own and in hard times it can be sold to realize cash quickly and easily.
If the amount of money tied up in this way is not large then a detailed knowledge of the market is not really needed because the manufacturing costs of these small amounts of silver and the pleasure of ownership will outweigh the financial outlay.
USES OF SILVER ;-
TRADITIONAL
Coins and medals
Dentistry
Jewellery
Photography
Silverware (teapots etc) and Tableware (knives, forks etc)
INDUSTRIAL
Batteries (silver oxide cells)
Bearings
Brazing and Soldering
Catalysts
Chemical industry (silver is a superb hear conductor)
Electronics
EMERGING
Clothing
Medical Applications
Mirrors & Optics Coatings
Solar Energy
Water Purification (silver is used to kill bacteria)
Investment.
Silver investment is for poor man & Gold Investmentis for rich man
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