Docstoc

Precious Metal (PDF)

Document Sample
Precious Metal (PDF) Powered By Docstoc
					          Precious Metals: Industry Standards

Wise   investors know how important it is to protect and grow wealth. Diversifying
investments among various financial instruments is a technique which has proven to
help investors accomplish that goal. Most financial professionals agree, a truly diverse
portfolio should include some form of precious metals investment. With a Self-Directed
IRA, investors are able to own precious metals, create a hedge against inflation and
further diversify their investments.

Because they hold their value better than paper money, precious metal such as silver
and gold are appealing investments.

Gold gets all of the attention when it comes to investing in precious metals. Silver, on
the other hand, presents a potentially more lucrative investment than gold because of
supply and demand pressures. There are a lot of similarities between silver and gold in
terms of investing. Yet putting all investments in silver is slightly more risky.

Education on the benefits and risks of any investment is the best way to decide if it is
the right move to make. Although international trends influence the price of precious
metals, there is no way that the price of precious metals can be influenced by central
banks by just printing more money or buying or selling government bonds to expand or
constrict money supply.

                               The success of mining of operations alone determines
                               the supply of precious metals. So the price is more
                               stable. Gold and silver in this sense are very similar
                               investments. Globally speaking, there's a continuation
                               of increasing gold supplies while its use in
                               manufacturing is limited. The same is not true for silver.
                               Silver supplies are decreasing, and it is used in several
                               industrial de factos.
                               With decreasing supply and steady to increasing
                               demand, the worth of silver should surpass the worth of
gold.

It just wise to take into consideration supply and demand factors as they may suggest
that silver as well as other precious metals should be a better long-term investment
than gold, but the value of these metals are not determined by these market indicators
alone. The historical relationship between gold and currency is the risk of investing in
silver.

Some countries happened to have a silver-based currency assessment before the gold
standard became the norm. Different rules are in place now, and the ability of investors
to manipulate the market continues to taint silver for some investors. Indeed,
sometimes the price of silver does surpass gold. However, silver suffers from an image
          Precious Metals: Industry Standards
problem that adds risk to a silver investment. And This could be taken as a warning:
based on economic laws, silver should be as good an assets, if not better than gold.

Silver never became as internationally accepted as an assessment standard as gold.
Gold tends to weather economic declines better than silver, if for no other reason than
investor preference, and that's simply based on the history between gold and currency
values. Moreover, gold is believed to hold be more valuable than silver by most people
for non economic reasons, which influences the price.


Again, based on economic laws, and despite its suffering from an image problem that
adds risk to a silver investment, silver should be as good an investment, if no better
than gold.

				
DOCUMENT INFO
Shared By:
Categories:
Tags: precious, metal
Stats:
views:28
posted:5/21/2012
language:English
pages:2
Description: It just wise to take into consideration supply and demand factors as they may suggest that silver as well as other precious metals should be a better long - term investment than gold, but the value of these metals are not determined by these market indicators alone.