Dropping the option to invest in gold or silver is not easy. It depends on your investment taste as an investor and what is believed. If you are the type of long-term investor who chooses and buys gold through online trading, then a mix of gold and silver investments may be an option. This is because gold has been part of the status of one’s wealth since the Roman Empire has not stood. But lately gold received a lot of pressure. You can visit SMH AG Industriemetalle to get the best.
It is true that gold has been at a high price for a long time, but in the short term, gold is often used as a bet for other assets. Reflecting on a few years ago, gold had perched at a high price in some time. This is not because of the fact that gold is a safe asset, but because of concern the policy of the Fed to print too many dollars. In addition, there is also concern the Fed will provide credit easily that can drive inflation.
The most urgent reason to buy gold is when central banks around the world are printing more money than they should. Some analysts assess the weakness of the current gold value not because of reduced quality. But more because investors are still hesitant to assess the rate of inflation. Let’s say, gold passes the price of US $ 2,000 per ounce this year, meaningless because of its improved quality but more because of the influence of the world economy. There is no guarantee the price will continue to sit in the same nominal. Then you can not expect the gold price will continue the same as when you bought it. Meanwhile, investment and silver trade differ from gold. The history of its trade values is well known and stable.
If previously, gold had experienced tremendous movement for two decades, silver prices tend to rise and fall in the short term. The cause of silver prices is more stable than gold is a combination of several things. First, the global market for silver is smaller and makes the price hard to manipulate. Secondly, a number of central banks in the world are less interested in stabilizing silver prices given its long history as a gold holder. Not only that, since mid-1970, central banks prefer to buy bonds and other securities. The last reason is macro economic conditions, many silver is not used as an asset but to be reproduced into watches, computers and other electronic goods.