No doubt, silver investment is getting hotter nowadays. Global demand in silver continues unabated. When the dollar collapses and becomes worthless, silver and gold values will be increased by world-wide supply and demand.
Back to past few years, new investment vehicles are introduced to the market. Apart from investing in stocks, bonds and other financial instruments, investing in precious metals such as gold and silver became a promising investment strategy to preserve their wealth.
As we can see, gold became the most popular of the precious metal investment. However, the gold price has been skyrocketing due to high investment in gold. So, now we should move our focus into silver investment as it used to be traded in the same way as our real money and it’s remains to be valuable for few decades.
Prices for gold have hit new high again with it reaching US$1,565.70 per ounce on April 29. But, how high gold prices will go has become a hotly debated especially as the metal has been unable to sustain highs.
Do you know why gold price keep going up even during economic recession? Gold is considered a safe haven bet against high inflation. Recently, gold price keeps on going up probably caused by the social unrest issues in the Middle East and North Africa which raising the prices of oil. Plus, western countries see the financial imbalances in the western economies as a more dangerous long term threat to global financial security.
So, in the long term, gold will be a good investment option because of its ability to ride out economic uncertainty and global pressures
How High Will It Go?
Why gold price can drop recently? In my view, gold is a stable and safe investment vehicle. Recently, I’ve just discovered that gold price drop while the stock market dropping. I think it’s because the investors who held gold have found something else to buy when the price goes down.
Some people said that gold prices will decline is not unusual as it has often happened early in a new calendar year. You also can refer to the US dollar currency to do analysis as the decline of the US dollar value can result in higher gold price. I’ve explained this in my previous article -> Buying Gold As Investment
How to Decide When is Good Time to Invest?
If you are planning to diversify your investments portfolio, then you can try to do gold investment. Most of the people believe that gold investment is a good investment. 1 of my client had bought gold as their investment before and made roughly around 10%-15% for the investment which is better than fixed deposit.
For me, gold investment is another good option that you may try to consider in order to diversify your investment risk. If you are medium to long term investors then it may suit you since it is a moderate risk kind of investment.
My Review on the Gold Investment Market
Based on what i known, i can say that gold investment has grown dramatically in this few years, but it is still just a tiny proportion if you compare with the stock investment.
Advantages & Disadvantages of Gold Coins Investments