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Trading in gold and silver is speculative in nature which means it involves a higher probability of risk but a substantial profit opportunity as well at the same time. Do you have gold around the house that you want to turn in for cash? If so, then you need to find a good cash for gold company that will give you cash for your gold. Gold buyers can also use this sort of company to buy gold. Many people today are starting to see the sense in buying gold. Gold is one product that always holds its value and can come in coins as well as in bulk. Gold buyers New York can turn to a place that is reputable and will give them good quality for their money. Gold is always a good investment and never more so then when the economy is bad.

Once your account is funded you can select the metals you would like to invest in and send instruction to purchase them to your IRA custodian. Your custodian will send payment from your self-directed IRA along with shipping instructions to the precious metals dealer.

However, both of these markets are based on vast paper trading with little physical silver supporting the gigantic trading volumes. The amount of silver cleared each day in the fractionally-backed synthetic paper silver markets in London is staggering. On average, more than 6,500 tonnes of silver was cleared each trading day in the London Silver Market during 2018. With trading volumes about 7 times higher than clearing volumes, this would mean the equivalent of 45,500 tonnes of silver is traded each trading day in London, which is more than global annual mining supply of 33,000 tonnes. This is equivalent to 11.4 million tonnes of silver traded each year in London, which is about 360 times annual mine supply, and more than 7.6 times the total amount of silver ever mined (which is estimated to be 1.5 million tonnes). It can thus be concluded that the silver market in London is predominantly a fractionally reserved system with little backing in form of physical silver.

The historical ratio of the two metals is 62. When the ratio is higher than the historical average, it means silver is undervalued and vice versa. The current ratio suggests (99.95) that silver is highly undervalued and the prices could rise from here on as the global economies slowly start their industrial activity,” said Ajay Kedia, director, Kedia Commodities, a commodities research firm. He thinks that gold prices would not rise significantly from here on and the undervalued” silver prices could rise.

Going back thousands of years, gold was traditionally valued at 10-20x as much as silver. Although there were some temporary anomalies, the ratio always reverted to being in that range whether you look at Greece, Rome, Japan, China, or the Middle East over any sufficiently long stretch of time.

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