As the economy has struggled, investing in gold and silver has become a very lucrative opportunity. In general, precious metal prices go up when the stock market goes down, and vice versa. Right now, with the weak economy, both silver and gold are showing very high prices.
Silver is the place to start with your precious metal investments. It is more accessible because the prices are lower. However, there is less investment-grade silver available than there is gold, meaning that scarcity will keep prices firm. It is a very useful commodity with a variety of industrial applications. It is the most electrically conductive, reflective, and thermally conductive metal on the planet and has no known substitutes. This variety of uses will keep demand for silver high over time.
Gold is a valuable investment because it is the only type of money over 5,000 years that has never failed. Other money systems can be quite shaky, as is becoming clear with the Euro. There is also a limited amount of investment grade gold available. This scarcity improves the true value of gold. With paper money, more can be printed, devaluing the currency. Many currencies have been ruined by governments who follow this practice. Gold is also a private and anonymous investment that is very portable.
There are many services that will buy your gold or silver from you, if you’d like to sell it. They may pay a discount, essentially charging you a bit for the convenience of using their store or service. Some services, like Garfield Refining, will pay you in cash or in bullion, whichever you prefer. This can be a great way of turning scrap metal into a much better investment.
However, when buying gold or silver, there are some pitfalls to avoid. You should always buy gold or silver at its value if possible. Many dealers will try to sell you gold at a marked-up price, that is, for more money than the gold is worth. They may try to tell you it’s an old US coin and can’t be confiscated if the government recalls gold. However, that is a myth. In 1933, Roosevelt exempted rare and unusual coins from his gold recall, but that doesn’t mean the government will do that again. In addition, old US gold coins are not particularly rare or unusual, as they are sold all the time. Finally, since gold is no longer the basis of US money, a gold recall by the government would be very unlikely.
The gold and silver market is cyclical, as are all markets. There are times to buy, and there are times to sell and move your wealth into other asset classes. Right now, as the world economy struggles and the United States engages in unprecedented deficit spending, it’s time to buy. If and when the economies recover, you will be in a great position to transition into other holdings. In case of emergency, however, you will be well protected with your precious metal holdings.
Garfield Refining is a Philadelphia based precious metal refinery offering nation-wide service. This 120 year old refinery buys precious metals scrap and refines gold, silver, platinum, and palladium and services both B2B and B2C markets. Follow Garfield Refining on twitter for up to date gold prices