Sterling Silver means 92.5% pure silver and 7.5% some other material. A number of asset management companies offering fund of funds that invest in gold mining companies, which are expected to gain from higher gold prices. However, Pai says gold mining companies which have over-hedged will lose money in this rally whenever they unwind the hedges.
Gold coins are another way to make a physical gold investment. You should note though that if you buy gold coins, they may not always be equal to the spot prices of gold in the same way that a gold bar would be. This is due to a number of other factors being at play.
Not only gold though is seeing an uptick in demand. Silver trading, often seen as the second most popular precious metal to trade, has jumped to its own multi-year highs. Trading at near $28, silver has advanced almost 30% this year alone. With that in mind then, you may be wondering how to get in on the action? We have you covered with a full lowdown on how to get started trading silver, alongside everything you need to know about the world famous precious metal.
A lot of individuals today retain gold and gold coins as an investment because they speculate that the demand will cause it’s market value to increase. Other people hold onto gold as a form of insurance especially in view of the present shaky market conditions and downturn in the economy. There was a point in time when the more paper money that was produced, as released by the banks, the higher the market value of gold which maintained gold and cash as equal value. After this standard came to the end of it’s day in 1971, this enabled government to produce more paper currency without increasing the price of gold itself.
Hedging investments is a strategy to protect your investments from risky situations. If your asset loses value, a hedge can help offset this value loss, a lot like insurance. While hedging in precious metals won’t protect you from losing money in all situations, it will reduce the chances of losing any money.