What Affects Gold And Silver Prices
De CidesaWiki
Mining Companies - Another way to invest in gold is to purchase stock in a gold mining company. As the price of gold moves up, your stock usually moves up with it. This is not always the case as each company's situation is different and there may be other factors that hold your stock's price down or makes it soar. There are all sorts of risks when investing in a mining stock, some are: management, weather conditions, natural disasters, accidents etc. All of these factors can greatly affect the price of your mining stock.
In my 6 years of investing in gold and silver, I have been asked this question many times: "How do I invest in gold and silver?", to which, I reply: "Why you invest is more important than How you invest. 'How to' is the easy part. 'Why' requires some research and learning.". But, since this article is about 'How to' invest in gold and silver, I won't make a lecture about the 'Why', but I would be robbing you of your understanding if I didn't at least cover the topic briefly. Also, the next question I usually get is "Should I get bullion or stocks?" To which, I answer: "Both, but get bullion first." And this article is about investing in Gold and Silver Bullion.
All have witnessed that while the financial market of the world was falling, the prices of gold and silver have been achieving a new peak. how to invest in gold and silver, the big question still is what affects gold and silver prices? The price of the metal commodities depend on the supply and demand. Therefore it is a wise decision to invest in these commodities. However, there are risk factors as well. The price of gold and silver swing daily, because of heavy volume. It depends upon geo-political unrest, bulging country deficits, and war.
Finding a reasonably priced silver rounds is not hard. However, finding a good deal can be tricky. If you will buy in bulk, certainly you will get a good discount. However if you will buy it per piece of in small proportions, the dealer may charge you more.
"Gold / Always believe in your soul / You've got the power to know / You're indestructible / Always believe in because you are / Gold" - so goes the hit song by the defunct pop/rock group Spandau Ballet which compares the strength and beauty of the human spirit to gold.
These days there are a number of Gold Funds or MF's where one can invest. These bonds invest the money only in the bullion market and are managed by Professional Experts. So if one do not have time or expertise to deal directly with the fluctuations of the gold market he could still invest via these bonds. However most of these bonds have entry and/or exit fees and have a certain lock in period. So this form of investment is mostly a long period investment. Another advantage is that these funds gives the ease to invest via SIP's. So one could invest in Gold in small amounts over a long period of time.
Now that we've compared precious metals, the question is how to invest. You can buy bars, coins, rounds, or bullion. But if you plan to play this precious metals game I suggest you do it on the computer through your discount broker.
Many experts agree that if you do not do something to protect the true value and purchasing power of your dollars, the value of your assets will continue to go further and further down. Since the beginning of mankind, gold and silver bullion have proven to hold their value through good times and horrible times. It is a solid and time tested store of value.
These days almost all banks and Gold merchants sell gold coins which are 99.99% pure and are certified by Standard Agencies like Hallmark. Hence the problem of searching pure gold is almost a thing of the past. Apart these coins are available in very small denominations like 2 gm, 5 gm, 10gm, 25gm, etc. So anyone with even a low budget could gold investment companies coins. Though these coins to not have the making charges, but then while selling them these are purchased at a discounted price. So though unlike jewellery there is no loss of making charges which but then one still do not get 100% value of his Gold at the time of selling.
To establish the list value of a numismatic coin, coins are graded by grading services. Three of the main grading services are; ANACS, PCGS and NCG. As you would expect, many experts believe that certain grading services tend to over-value... or under-value the worth of a coin. Some services are much more creditable than others. Again, it's all a matter of perception as to what "perfect" is what constitutes the practically gold investment companies variations of grading. It's possible to send the same coin to each of these three grading services and have each of them come back with a different grading. Like I said, it's all perception of value.
Two excellent gold companies are the Perth Mint and Gold Money. The Perth Mint in Australia is a resource that stores gold for investors. Gold Money allows people how to invest in gold and silver buy shares in gold stored in vaults in Switzerland and Great Britain. Gold Money shares can be directly traded or sold, so they have the advantage of liquidity.
