When in comes to precious metals investing, the glittering gold may be preferred by a lot of investors when compared with silver investment all these while, but considering the fact that the price of gold is at historical high, it may be time to turn to silver a thought. The sands of time may be shifting towards silver investment.
There is an old maxim that says, "he who cannot afford the yellow metal, settle for white." That may be true. But, do you know that silver is increasing at a higher rate than gold? On the percentage increase measurement, silver outstrips gold by 2:1. From 30 July 2010 to date, sliver increased by 29% while gold increase by only 13%. Now, who is the poorer one? As long as gold continues its uptrend, sliver will become more attractive.
Although it's quite easy to buy silver, you'll need to take note of different factors of silver investment if you ever want to think about getting them.
There are actually several information on how you'll be able to buy gold, invest in gold etc, however there may be very little guides on ways you can invest in silver. Now you have to know that silver is the other precious metal besides gold. So if you find the gold price soaring, most likely the buying price of silver investment will probably follow the identical direction too.
Silver has a long history too that starts back to many years go. China was the very first nation to use silver as money some 2,500 years ago. In the USA, silver alloys are still contained in the coins that people use everyday and that has being around for 40 years.
One reason why silver is not regarded as a metal for financial purposes for the present time is because close to 50% are in fact used for industrial purposes. It is used for construction, electronics products, digital photography, wrist watches and plenty more.
The actual silver investment market is quite small, having a annual need for under nine hundred million ounces. Same as gold, spot silver price can be volatile as well. It can surge this moment and then decrease the next. It has established a recent high of $23 per troy ounce.
Although the price is already high, numerous financial gurus are predicting the rare metal to reach $30 for each ounce within years ahead. So this may be a good chance for traders who are looking at silver investment.
So how can you have an understanding of silver better? One of the ways is to see the ratio between gold and silver. It gives you a concept of how much silver is needed to purchase an ounce of precious metal. The ideal ratio should be 16:1, meaning gold is 16 times the price of silver. Based on the price of gold of close to $1,300, silver has to be around $81 but it is still quite a long approach to take from $23.
But when we look at the short term level which is much more realistic because the bull market begins in year 2000, ratio silver to gold is about 50 troy ounces of silver for an ounce of gold.
So as the silver market is picking up and demand is rising steadily, you might want to look at silver investment as part of your precious metals investing portfolio by getting spot silver, bullion bars or even coins.
To learn how to trade gold online successfully and more about silver trading and investing, instantly download my FREE "The Golden Secret To Unlock Your Riches" ebook at http://www.goldsilverexpert.com/freegoldreport.htm now.
The author, Daniel Su, is a professional currency and commodity trader who provides free premium gold trading tips and resources to help traders achieve their long term financial success.
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