Gold-Silver Price Movement and Small Traders

Nowadays routine gold – silver buyers and sellers are in big turmoil especially in countries like India, where most of the traders run business in traditional fashion. The price tracking methods of these traders are very poor hence they are unable to rationalize the price movement of the precious metals and as an upshot they incur huge loss in business. The business and trading of precious metals has become highly arduous and full of intricacies, therefore traders require either high – tech enabled systems or advisors to stay in the business but sadly this is beyond their reach.

The small traders do not understand the various multi – dimensions of price movement viz. economies, investment demand, sovereign currency and safe haven demand. The prices of gold heading for $2000/oz and silver prices also all set to test $50 levels. Given the fact that the beta or market volatility of prices has knocked record high level and the money of small traders is diminishing day by day. The situation becomes grimmer in case of those who know about Morning Stars and Evening Stars (candle stick patterns) because they are unable to defeat the emotional tide or presume the Japan’s earthquake or Obama’s mind. This shows the uncertainty in the system which affects the prices of precious metals so as small traders, who cannot withstand the high variation in price in short span of time and as an upshot the incur small to huge loss.

Back home (India) the prices of gold and silver heading for record INR 30000/ten gram and INR 70000/ kilogram respectively. The small traders generally known for jewelry making and bar trading have suffered due to wrong assumption of prices since the don not have access to the bunch of knowledge holder firms. People only knows that the neighbor dragon or China is consuming this stuff more and more hence prices are shooting up but unfortunately they are unaware about the grand daddy united states of America’s financial turmoil and poverty of European countries. At present the most of the stock markets in the world including India have given up 10 -20% from their recent high levels and still looks vulnerable but the interest rate hike cycle nearing its high emerging markets looks some investor attractive even though devil form of inflation looming large over the people’s pocket especially in India inflation still hovering around double digit. The only hope for countries like India that if gold moves further up the crude oil prices may settle at comfortable level preferably in seventies, due to worldwide warranted scenario of poor economic growth.

Hence forth the small traders are advised to trade or deal in very cautious manner to avoid self fiasco in the volatile markets. They should feel well advised or filled with sufficient confidence to trade or making any kind of deal especially in precious metals. In addition they should develop their own system for trading as well as for business. Try to stay in the market as long as possible. I wish you best of luck.

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Should You Invest in Silver Using the Gold-Silver Ratio?

Gold and silver, the world’s favorite precious metals, have a sixty century history of surviving financial collapses, raging wars, and economic chaos. Even the words for “money” and “silver” are the same in over a dozen languages. Six thousand years of history indicates that precious metals will continue to be used as a means of exchange for the foreseeable future, especially if fiat currency becomes worthless.

The most popular silver investment vehicles are 100 ounce and 1,000 ounce bars as well as one ounce bullion coins. And the most popular bullion coins are Silver Eagles.

Is Silver a Better Investment than Gold?

During bull markets in precious metals silver has almost always produced higher percentage increases than gold. While gold has doubled in some of the upward moves silver has, at times, tripled or quadrupled in price.

It also has considerably more industrial applications than gold, which helps to underpin the price of silver.

In the past several decades the industrial demand for this metal has exceeded mine production as well as the secondary recovery. Above ground supplies have dwindled as well. From this perspective, things look quite bullish for the lower-priced alternative.

The Gold/Silver Ratio

If you were to research precious metal stocks you would probably find that both gold and silver miners convert precious metals prices into the cash equivalent of its byproduct. In other words, gold miners will convert their silver byproduct into the dollar equivalent of gold ounces while silver miners would do the converse. So silverminers would convert their byproduct gold production into ounces of silver and then convert the gold into the dollar equivalent of silver.

Over the past several decades this ratio has consistently been approximately 55:1. It is a well established equivalent.

When the ratio has increased the price of silver has invariably gone up. Conversely, when the ratio has decreased the price of silver has gone down. Relatively recently gold has traded at 84 times the price of silver while at other times in recent history silver has traded at 1/45 the price of gold.

What is the Gold/Silver Ratio Today?

On March 15, 2010, gold was trading at $1,104.50 per ounce while silver was trading at $17.03, yielding a ratio of close to 65:1. Should gold remain the same and should silver return to the 55:1 ratio, the price of an ounce of silver would be just over $20, seventeen percent higher than it is today. If the 45:1 ratio (established in 2006) returned then the spot price of silver would be more than $24.50 per ounce.

Of course the choice of what to invest in and how to determine when you should invest is totally in your hands. However, some successful investors have been using the gold/silver ratio to increase their precious metals holdings.

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Invest In Gold, Silver Or Mining Stocks?

Due to the economic troubled period all over the world it is difficult to find an area where one can invest without considering the possibility of total failure. Because of this fact, the trend nowadays turns investors’ attention to more traditional markets. Precious metals investments seem to be highly appreciated and recommended by stock market professionals. However this market is a very wide one. So the following question arises: which side of it is safer and brings more profits?

Investing in gold
The price of gold has been in continuous ascension over the few years. This, plus the fact that investing in gold can take so many forms, makes gold an excellent choice for many types of investors. Whether they want to invest large sums of money, or just small ones, the precious metal is one of the safest means through which one can make sure that the results are positive ones. One of the traditional ways of buying gold is by purchasing it as bars, coins or jewels. The fact that the investment is a tangible one makes physical gold an ideal option.

Investing in silver
Just as in the case of gold, silver is a commodity whose price is influenced by speculation, but also by the supply and demand. However, compared to gold, silver’s price is considered to be more volatile. In the case of the yellow metal, its great value was given in the first place by the rarity issue. From this point of view silver is considered to be less valuable than gold. At the same time, silver can also be purchased in the physical form as bars, coins or jewelry.

Investing in mining stocks
This type of investment requires knowledge in the area. This is why it is indicated to hire a professional, a stockbroker to advise you. Choosing the right mining stock to invest your money in requires a lot of research in advance, so that you make sure it will be a profitable one. Many investors prefer large mining companies, which can give guarantees. However there are few guaranties if you do not invest at the right moment of time. There are many people who buy mining stocks when they are at their highest value, disregarding the fact that the ascension trend usually follows a decreasing curve.

To sum up all these, gold seems to be the best investment out of the three. However you should consider the fact that owning physical gold requires a safe place to deposit it. There are special safe vaults where gold bullion can be kept in the best conditions, vaults that professionals can provide for free.

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Facing Off Gold, Silver and Platinum With Titanium

Titanium jewelry possesses many fine attributes, which makes it a worthy choice for us. Choosing its outstanding qualities for ourselves can without question fashion our titanium choices with excellence in our gifts to others. The traditional precious metals like gold, silver, and platinum are not the end-all of exceptional selections.

Titanium’s high resistance to corrosion protects its luster and keeps it from tarnishing hand over fist above the ability of the others. We can predict in fact that gold and silver bracelets, for instance, will in time lack their distinct luminosity, diminishing the brilliance we bought the jewelry for. The oxygen we live on affects the metals chemically, fading their color. And if we wear the jewelry more than we store it, the perspiration from our bodies speeds up this process.

The hypoallergenic nature of titanium adds to our desire to buy the jewelry, especially for people whose skin reacts adversely to traditional precious metals; silver and gold is often mixed with nickel, which many people are allergic to. Titanium very rarely reacts with biological tissues and its alloys, and choosing it allays the pain and suffering of allergies.

Titanium’s durability and scratch resistance exceeds the other metals by quite a margin. We can engage in outdoor activities with no thought of damaging our rings and things, even in water sports. When we wear our silver and gold, our caution compels us to remove the items during many activities to prevent us from defacing the jewelry with scratches or worse. We can avoid such inconveniences when we select titanium jewelry for our everyday wear. An enjoyable aspect of titanium promotes comfort with its strength to weight ratio. The much stronger titanium as compared to silver and gold is also a lot lighter than they are; even steel loses out to our long enduring titanium.

The fashion setters wear titanium jewelry. Its newness and versatility in the industry has created dynamic and innovative combinations with silver, gold, and also gems. The jewelers can engrave it, can manifest the illustrious finish the same as with the traditional adornments. Unlike gold and silver, a jeweler can add color to men’s titanium rings or men’s titanium bracelets with anodization.

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Protect Yourself by Learning How to Buy Scrap Gold, Silver, and Platinum

Ever since Cash 4 Gold aired their commercial thousands of times on national TV there has been a gold craze. Millions of people are selling their broken, or unwanted jewelry to practically anyone who is willing to buy it. Depending on who they sell their gold to they will get anywhere from 15-75% for their gold. Since refiners pay about 95% for gold, you can see that even those paying 75% will still make an easy 20% on the gold they buy.

Learning how to buy scrap gold, silver, and platinum is a skill that you can carry with you the rest of your life. Whether you want to become a scrap gold buyer or you just want to know how much your jewelry is worth before you sell it to a gold buyer; it’s valuable knowledge to acquire. As of today you may just have a few pieces you want to sell, so you learn how to test them and calculate their value before you sell them. This could prevent you from getting ripped of from those who only pay 15% of the value of your gold. Maybe in a couple years you fall into hard times and need to make some extra money. If you know how to buy gold, silver, and platinum jewelry you could easily make the extra hundreds or thousands you need to survive. By learning this valuable skill you are protecting yourself now and in the future.

Some might be thinking this craze will die out and it’s not worth learning about. Although, the craze may slow down the knowledge will remain valuable. I have met several people who learned how to buy scrap gold in the 1980’s when it spiked, stop for a while and are now buying more than ever before. There will come another era in your life when you could be on the leading edge of the boom and profit more than ever. Even if you are not interested in getting started now you should be interested in taking just a couple days to learn how to test gold, silver, and platinum, how to calculates its value, and who to sell it to.

Before your friends scrap any of their jewelry you can go through it and let them know what a fair price would be, or you could buy. The opportunities and options are limitless; so take the time to learn this skill from someone who has mastered it. It will be tough to find but look for a place that provides additional personal support on how to buy scrap gold, silver, and platinum to answer any additional questions you might have. Good luck and get going there is tons of jewelry out there waiting to be bought by people like you!

When gold started rising several years ago a young entrepreneur saw an opportunity he couldn’t pass. Matt Wallace has been in the jewelry industry and buying gold for half a decade, becoming an expert in his field. He has partnered with individuals who have been gold buying for over 40 years and is now teaching others how they can change their life and free up their time by becoming a gold buyer.

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