Finding Out Gold Movements Is Significant
Examining the price history of silver and gold is intriguing. For more than a hundred years the price of an ounce of gold was $20 and an ounce of silver $1. Silver over the years has a ratio of 20:1 to gold, so ultimately it should match that again - meaning the value should rise.
At today's gold rates, we should anticipate that silver would be priced around $80 per ounce. There are various studies on why this is not the case including demand and industry changes, the US leaving the gold standard, and market manipulation. No one can be certain exactly why the historical ratio is so crazy but we can infer that the ratio will return to historical averages.
However, gold has historically equaled the DJIA. If this were to become reality all over again, either gold will maximize or the Dow will crash.
In any event, I think holding a mix is a significantly better option because of diversification and to have flexibility when you do need to buy stuff in the foreseeable future using these assets. It will require a strong individual to lug a heavy bag of silver into a store to purchase an excellent Television.
Why not simply give the cashier an ounce of gold instead?
This was standard practice century ago in America. Empires way back to Egypt, Greece and Rome all traded in in silver and gold coins. This was a time tested practice.
Fiat currency systems are a very new creation and don't have a very good track record economically. Current failures in the fiat experiment were seen in Zimbabwe and Germany to name a few. Because the historical significance of gold and silver is really proven, I recommend that everybody should have some as a smart investment and safety net.
Techniques to Make investments in Silver and gold
Gold appears like a pretty lucrative investment at this time considering the approaching inflation and very slow global development outlook. So how can you actually invest in gold or silver? There are many methods actually.
Just please make certain that you are aware of the spot price of gold if you're selling or buying gold you own or want to own. As of this writing the spot price is about $1642 per ounce. The value fluctuates everyday but can be located easily on the internet or in financial newspapers.
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