Gold or silver: Which One is best for the Investment in the Present Market Situation!
As we are in 2012, gold and silver continues to climb and investors are questioning its future price direction. Is gold in a bubble? Have the price gains of the last decade-which beat out stocks, bonds and several other favoured asset classes- peaked? Did today's investors miss the opportunity to buy? Or is it the right time?
This is the time when another slowdown is expected to hit the market very soon and this could be the reason for an investor to understand the extreme condition of market and carefully invest their hard earn money. With the increase in cost of crude oil per barrel, government of India has increased the price of petrol and diesel which is going to impact the market with hike in the price of all. So this is the time to decide where you want to invest in gold or silver.
Gold or silver: which is preferred stock?
Investors get high returns on their investment in valuable metal like gold and silver nearly 42 percent in the row, 2009 and 2010, and 4 times in past 5 years. Return on silver (80 percent) is all most double as compared to gold (34 percent).
Low supply, high demand and safe investment decision are main reasons for the tremendous hike in the price of these metals. Silver price has been increased approximately 10 percent in first quarter of 2011.
According to the current market situation it is good to invest in these metals. Even after another slowdown is expected to hit the market, still price of silver is being appreciated compared to gold. But it is advisable to do a little research before investing your money in any of the stock whether it is silver or gold.
Selecting the right intermediaries is also a very crucial part of investment decision. So with small study you will be able to know that price of pure gold is lesser than the price offered by the chain of intermediaries, like retailers, wholesalers etc.
If an investor is making investments at regular intervals in silver and gold will able to diversify its risk and enjoy the advantage of market instability.
There is various ways by which you can invest in these metals. Some of the ways are Coins, Gold account option by Swiss banks, Gold exchange trade funds, Spread betting (predication in rise and fall of the price of these metals) and Investments with mining companies.
Accurate period of time to buy or sell
With the hint of another slowdown investors have started selling their stocks for extra earrings but with the all-time high price the stock of these metals are advisable to keep for some more time and watch the market condition carefully.
Price of US dollar and current financial condition are two most influencing reasons that affect the investor’s decision sell or not. If an investor is strong with financial condition than it is good to buy at lower price and hold it for a long period of time so whenever the market condition will improved he will be able to sell at higher price to make extra gain.
