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Silver Vs Gold Investments

It is no secret that both gold and silver are recognized as safe investments with a secure store of value. What is not so well known is that while gold has demonstrated a solid trend of rising prices since 2001, appreciating more than five times its 2001 price, the price of silver has recently outperformed that of gold. The unusual and extremely bullish fundamentals of the Silver Market suggest, at current prices, that investing in silver could offer investors one of the single best long-term investments today.

Between January 4, 2010 and June 30, 2011, the price of gold increased approximately 34%, while the price of silver rose more than 100%. In addition, there is a very convincing argument for investing in silver today because the economic and monetary fundamentals in place today are even more bullish than the conditions of the 1970s when the silver price exceeded $50 per ounce. This escalated price was driven to its peak by the Hunt brothers who were looking, like many of us today, for a solid, secure way to protect their own and their families’ wealth, and grow it if possible. Buying at $2 per ounce at the beginning of their search for security, they drove the price of silver to over $50 per ounce and owned more than half of the world’s store of silver. When the prices plummeted, their net worth crashed as well. They still owned the physical silver, yet the value of their futures was greatly deflated. In addition, gold plummeted along with silver values.

Today’s market prices, well below the $50 level, are a mere fraction of levels projected by silver industry experts for the future. Worldwide market demand for silver is growing, while supplies of silver are quickly disappearing. This supply & demand diversion is what drives up the price of silver. New high-tech uses for silver will further strain already-tight supplies in the future. World demand for silver now exceeds annual production, and has every year since 1990, depleting above-ground stockpiles of silver. The U.S. government, once the largest holder of physical silver, dumped billions and billions of ounces of silver onto the world market over the years, resulting in depressed silver prices. Today, that government silver hoard is gone, and now the U.S. government is a buyer of silver at prevailing world silver prices, just like every other investor.

Precious metals IRAs are definitely safer investments than pieces of paper ie stocks, bonds, currency are. Silver and gold both have their benefits and their risks. Your safest bet is to do research both on the elements and their investment histories, and on a reputable broker before you make a decision, and then diversify your portfolio following recommendations for your level of tolerable risk. Your reward will be much greater if you are at ease with your investment. United Gold Direct can help give you confidence in your decision.