The new way to trade silver is on the Forex Market. Here you can use leverage and trade silver against many different currencies. The Forex Market offers fast in and out liquidity advantages and options.

The Traditional Methods of owning silver

Precious metals have been popular investment options for hundreds of years. The word “bullion” refers to the precious metals’ physical state and has value based on that metal’s purity and quantity. Most of today’s silver is mined mainly as the result of mining for copper and zinc as silver is commonly bonded with those metals in small quantities. Silver bullion is 99.9% pure although there may be variations.

Silver bullion comes in bars that are stamped with the name of the company that minted the bars along with the bars’ purity and weight. The bars come in sizes of 5, 25, 50 and 100 ounce bars. Silver rounds and silver bars can be purchased in 1 ounce sizes also. Although it is very seldom that investors buy silver bars heavier that the 100 ounce version, there are bars that weigh up to 1,000 ounces.

Silver coins are also available. These coins are different from silver rounds as they are produced by official mints that are federally authorized whether they are for purposes of bullion or money. Canada, the USA and some other countries produce silver coins. Buying silver coins has the advantage that the coins have historical value which makes the price higher. Silver ornaments and jewelry tend to fall into this category even though they may be rarer and have historic worth is so much higher that the coins.

There are also silver scrap and silver nuggets though these are quite rare. Most companies that manage to produce the silver scrap, gather the scrap, purify and mold the scrap into bars and sell them. Silver scrap tends to be not as pure as the silver coins or bars.

Although silver commands a price less than gold, it is a popular option for investment because they have intrinsic value. Like gold, silver’s value is determined largely by market conditions. Most of the potential of silver lies in buying the metal when the price is low and selling when the price is high just as they would stocks. Though unlike trading stocks, silver’s price rises when markets are in trouble as people tend to invest more in silver as a safer investments.

There are many places where silver is readily available. Silver is even available online. However, one needs to be very careful when buying of silver online. Quality of the silver can be difficult to guarantee in transactions online. Purity is the factor that is most important when it comes to silver bullion. It would be preferable to buy from companies or dealers that have acquired trustworthy reputations or those that have been highly recommended.

Investing in silver also has some disadvantages. Similar to investing in gold, silver does not yield any interest. The price of the silver bullion also comes with a premium so one pays higher that the bullion’s actual worth. There is also the matter of storage space as bullion tends to be bulky and rather heavy and must be kept secure. There may even be a need for an assay if the silver is to be sold.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

The new way to trade gold is on the Forex Market. Here you can use leverage and trade gold against many different currencies. The Forex Market offers fast in and out liquidity advantages and options.

The Traditional Methods of owning gold

Countless financial experts have always claimed that there are many benefits to be had if one invests in gold. Most feel that gold is the very best investment choice. This is especially so when we are faced with a volatile stock market and uncertain economic times.

Here are some of the fundamental reasons why it is good to invest in the “yellow metal”

1.Gold is not just a commodity, but is also a currency that has evolved over the last five thousand years in the marketplace.
2.Gold, along with silver, are the two tangible currencies that are not controlled by governments. Monetary currencies like the Japanese Yen or the US Dollar are “fiat,” this means that they are merely worth a value that was given by a government decree. They are legal tender but do not represent anything tangible.
3.Fiat currencies lose their worth or value once they are created in great amounts. This causes what is known as hyperinflation.
Gold as a Hedge Against Currencies and Inflation

Gold plays an important role as a hedge against inflation as gold appreciates. As most investors realize that their portfolios are losing value, they will naturally gravitate towards positioning their investments in hard assets that maintain their value.

Gold benefits when the US Dollar declines as gold’s price is in US Dollars in the global market. Central banks who would want to invest in gold will have to sell their US Dollars to buy gold in the world market. This practice naturally drives the dollar lower as more and more investors are letting go of their dollars in order to diversify. The declining dollar makes the yellow metal more affordable for investors holding other currencies as this naturally results in more demand from those investors who are holding stronger currencies.

Gold Used as a Safe Haven

Most investors will look for safe havens during times of economic and political uncertainty, and they naturally turn to gold. This is because history is replete with collapsed currencies, collapsed empires and even political coups. During such times, people who had held on to gold were able to survive those times. Many have even used their gold in order to escape from such problems and save themselves and their families. Even today, once there is news of uncertainty in any part of the world, most investors turn to gold as their safe haven.

Diversifying Investment with Gold

It does not matter if one is worried about declining US Dollars, inflation or protecting one’s wealth, gold has historically been an investment that adds a crucial diversifying component to any portfolio.

There are many people who consider gold as an investment that is risk-free because gold is capable of maintaining its value. Gold offers a basis for financial savings in cases of sudden increases in inflation.

However, it is also worth noting that gold, like any other investment, has disadvantages. Gold does well whenever there are economic problems but does not too good when financial times are well. Another disadvantage is that gold does not pay any dividend like shares or stock investments.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

People have asked “when I sell my gold gold what should I invest in”. My answer is simply secure farmland with a secure reasonable water source, near a transport corridor system but not to close to an urban center.
Yes, this is much more management intensive than holding physical gold. But, usable farmland is a safe bet moving forward and adds wide diversity to the average person’s portfolio.

Added on 12-18-11
Jim Rogers and GreenWorld BVI target agricultural land investment in Australia

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

CLICK HERE to go to Trade Gold Silver Blog and Opinions

As of 7-18-11 gold is at $1,603.00 U.S. Dollars

Stop buying gold!

If you own physical gold begin to divest 50% of gold holdings over the next six months.

Why only sell half of your gold? Situations can and may change very fast in this current world economic and political era. I also assume that most people who are true long term physical gold purchasers purchased much of their gold (about half) under the $1,000 price.

REASONS FOR DIVESTING:

China is over heated and is in a high risk time frame for an economic development major slowdown to begin.

Without China pushing hard to develop their infrastructure and housing and with no QE 3 from the USA the above will cause commodities to deleverage (including gold and silver) as speculators scramble to re-adjust their portfolios and try to maintain a positive cash flow.

Most of the developed world is in a deep job loss and product demand major slowdown (which will, under present government policies, continue for years).

CLICK HERE; 8-1-11 “one standout is the SPDR S&P Metals and Mining ETF (XME) where we have detected an approximate $43.3 million dollar outflow”

Where do you put gold sale proceeds ?

July 18, 2011

People have asked if not gold then what should they invest in. My answer is simply secure farmland with a secure reasonable water source, near a transport corridor system but not to close to an urban center.
Yes, this is much more management intensive than holding physical gold. But, usable farmland is a safe bet moving forward and adds wide diversity to the average person’s portfolio.

Added on 12-18-11
Jim Rogers and GreenWorld BVI target agricultural land investment in Australia

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.