10 Tips To Investing In Gold & Silver

Many people who have been looking for new areas in which to invest have turned to silver coins. 5) Investing in Sovereign Gold Bonds issued by the Government of India – In a bid to turn gold into a productive asset in India, the government introduced Gold Monetization Scheme (GMS) on 5th November 2015 to help one earn interest on the unused gold lying idle in bank lockers.

This whole event is mainly just a fun fact. But it’s an example of how, although gold and silver do not produce cash flows, there is still some semblance of a way to value them. A smart investor will identify undervalued or reasonably priced assets in all sorts of different areas.

Once you’ve decided on the amount and type of silver you wish to buy, we can be delivered to your door, or hold in our secure facility on your behalf. This option is the preferred choice for many of our clients as the size of bullion you get for your money is greater than the equivalent in gold. Our LBMA facilities are fully insured by Lloyds of London and also provides a guarantee as to the provenance of your investment when it comes to resale. Secure and safe storage can also avoid accidental damage to the condition of your silver investment which can also affect the resale value.

In the end, for the ratio to return to its pre-1900 average of 16:1, the price of silver would need to climb to approximately $105 per ounce. Similarly, if the ratio were to drop to its long-term average of 47-50, silver prices would rise to about $61 per ounce.

The story with gold was dramatically different. The price of gold averaged $36 per ounce in 1970 The average price in 1980 was $615. For the decade of the 1970s, the price of gold increased by just over 1,700%. Even if you account for the doubling of general price levels, gold still increased by 850% in real terms. Stocks, on the other hand, went decidedly negative for the entire decade.

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