Gold Price Today: Know Why Not To Buy Gold Silver Now See Levels To Maximise Your Profit
Gold Price Today If you are planning to invest in bullion, this is what you must know! Aggressive buying, now, will not give Good Returns on Gold and Silver investments. Zee Business expert Anuj Gupta tells what strategy to take while planning investments in Gold and Silver. He also gives crucial levels for intraday trading on MCX Gold and Silver futures
Gold Price Today If you are planning to invest in bullion, this is what you must know! Aggressive buying, now, will not give Good Returns on Gold and Silver investments. Zee Business expert Anuj Gupta tells what strategy to take while planning investments in Gold and Silver. He also gives crucial levels for intraday trading on MCX Gold and Silver futures.
Gupta, who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that there are plenty of options for investment in Gold. It includes buying from the physical market, ETF, Sovereign Gold Bonds and MCX futures. He however cautions against the timing.
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Gupta recommended selling gold. He recommended the numbers involved too. He said sell gold at at Rs 49,000. He put the stop loss at Rs 49,400 while the target price at Rs 48,300.
Outlook for Gold and Silver
US President Elect Joe Biden taking the Oval Office will lend a lot of stability. This could take some sheen off Gold and Silver. Gold is a safe haven for investors at the time of uncertainties.
Silver Investment Strategy
How To Buy Gold/silver Bullion Coins & Bars
When investing in gold and silver for the first time, it is very easy for customers to become overwhelmed by the many options offered to them. Whether faced with the decision of which products to order or how much to pay, the choices can seem endless. Fortunately, customers can rest assured knowing that there is no right or wrong way to purchase precious metals. While there are some general guidelines to keep in mind when doing your initial research, buying precious metals is mostly a matter of finding out which options best suit your needs.
Gold As An Investment
Of course, there is the other side of the trade. A group of people is buying gold. Ignoring the speculators and momentum-chasers, as these groups have little effect on the long-term price trend, there is a logical reason for people to turn to gold as an investment.
As an aside, gold is not an investment. People may say they are investing in gold, but if they are just buying gold to hold or wait for its price to rise, they are not investing at all. They are either speculating on the gold price, or they are opting out of investment. Thats what it means to hold money: to not invest .
There are two reasons why people are turning to gold now, more than ever.
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Commodity Exchange Traded Funds
Exchange-traded funds exist for all three precious metals. ETFs are a convenient and liquid means of purchasing and selling gold, silver, or platinum. Investing in ETFs, though, doesn’t give you access to the physical commodity, so you don’t have a claim on the metal in the fund. You will not get the actual delivery of a gold bar or silver coin.
Ounce Silver Bars Are Great For:
- Buy and hold investors who want to buy silver as close to spot as possible and hold their metal for the long term, and arent as worried about divisibility.
- Investors looking to buy a relatively large amount of silver without having to stack and store 100+ individual bars/rounds.
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Should You Invest In Gold Or Silver
Despite the uncertainty and challenging times this year because of COVID-19, many investors flocked to defensive assets such as silver and gold.
This has paid off handsomely, particularly given that the All Ordinaries Index is down over 10 per cent.
Since 1 January 2020, gold is up around 24 per cent while silver has performed even better, as it is up over 40 per cent for the year.
While these figures indicate that these were great investments this year, you cannot compare an index of stocks, such as the All Ordinaries Index against a single commodity.
This is because there were three stocks in the ASX top 100 that performed better than gold and silver, which include Evolution Mining , which is currently up 62 per cent, while Fortescue Metals Group and Dominos Pizza are both up over 50 per cent.
In addition, six stocks are up over 20 per cent for the year, but the challenge for investors is identifying those stocks that are likely to perform well.
Ounce Gold Bars Are Great For:
- Investors who have a healthy amount of money to invest , and want to buy metal as close to spot as possible.
- Investors who would prefer gold over silver, and arent too worried about divisibility.
Although the products weve listed above are our most popular products , certain investors may find other products on our site that would better suit them. For example, someone who was set on getting into gold but didnt want to spend $1,500+ on a 1 ounce gold bar may be more interested in our 1 or 10 gram gold bars, despite their higher premium over spot.
To see more of our products, view all of our Gold and Silver products.
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New Supply Is Falling
The silver price crashed after peaking in 2011, and over the next five years it fell a whopping 72.1%. As a result, miners had to scramble to cut costs to turn a profit. One of the areas cut dramatically was exploration and development of new silver mines.
It doesnt take a rocket scientist to understand that if you spend less cash looking for silver you will find less silver! That drought in exploration and development is starting to take effect, as this chart shows of the output from the top 10 largest silver producing countries.
This has had an impact on the amount of supply that comes from the mining industry each year. The past four years have never seen a drop like were currently experiencing.
Part of the explanation to the drop is that about two-thirds of silver mine supply comes as a byproduct from base metal operations . But these miners have also spent less on mine developmentwhich means they will produce less silver, too.
Meanwhile, low silver prices have affected how much scrap metal is available, tootheres less incentive to turn in scrap metal if the price is lower.
These realities have set the stage for a peak in silver supply. If demand stays at current levels, it will be difficult for everyone who wants silver to get as much as they need. And dont look now, but
Selling Gold And Silver
A common misnomer is that you will pay a premium for Gold and Silver when you purchase it but when you go to sell it, you wont even get spot price. This is largely true if you decide to sell it to a local coin shop, cash for gold, or pawnshop. We recommend reaching out to actual bullion retailers to sell your Gold and Silver as often you will be able to sell it at spot with a premium . This is because everyone will inevitably resell the bullion and need to make a profit but this is easily offset if you sell higher than when you purchased it. See the last section Strategies for more elaboration.
A small monster box of 1/2 oz Silver Coins from the Royal Canadian Mint. Photo taken in Dallas, TX at one of Investor Crates warehouses.
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Forget Gold/silver: These Are The Two Metals You Should Be Watching
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
It was a rough week for Gold and Silver bulls, and sell-offs like what we saw last Thursday are why I stress building positions slowly and incrementally. I find it disturbing that the precious metals market began its selloff in the middle of the night and accelerated into the widely followed Retail Sales report release. Did it leak? I’m not going to go there.
Retail Sales are an important economic indicator because the consumer drives the economy, 5.7% of GDP to be exact. The forecasted number was to be -0.7%, which came out at +0.7%, further accelerating precious metals decline. There are two aspects to the number that made it important first, it shows “growth” in the economy, and second, retail employs over 15 million of the U.S. working population. If growth improves and employment improves, the expectations for the Fed to taper or raise interest rates rises, which results in these temporary shocks to the precious metals markets. Those expectations pushed the U.S. 10-year Treasury yields to a two-month high at 1.385% and the U.S. Dollar to a three-week high.
Daily Palladium Chart
Buy Gold And Silver Etfs
Exchange-traded funds, or ETFs, are a popular investment option for those looking to invest in a diversified group of stocks, but many dont even think about them when investing in assets like silver and gold. The firms that manage these funds pool money from large groups of investors and buy large amounts of the assets they target, often giving them an edge in the market.
Although most ETFs are focused on assets like stocks and bonds, there are plenty of funds that make investments in precious metals. By investing in these funds, youll gain exposure to these safe-haven assets without having to handle the buying, selling, or storage of physical bullion.
However, there are cons to consider here. Investment-grade funds are managed by experts, which comes at a cost in the form of the funds expense ratio. Moreover, when investing in ETFs, you wont have any physical metals in your possession, which is a factor many precious metal investors enjoy.
Many precious metal ETFs trade on major stock exchanges like the Nasdaq and New York Stock Exchange. Some of the most popular precious metals ETFs include SPDR Gold Trust , iShares Gold Trust , and iShares Silver Trust .
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A Brief History Of Gold
In order to fully understand the purpose of gold, one must look back to the start of the gold market. While gold’s history began in 2000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. The creation of a gold coin stamped with a seal seemed to be the answer, as gold jewelry was already widely accepted and recognized throughout various corners of the earth.
Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K., with relics from the Greek and Roman empires prominently displayed in museums around the world, and Great Britain developing its own metals-based currency in 775. The British pound , shillings and pence were all based on the amount of gold that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa, and the Americas.
Best Month Of The Year To Buy Gold
If you missed buying gold in January, when is the next best time to buy?
We broke the historical data down into months, and heres what it shows.
Since 1975, the gold price has tended to drop the most in March. The daily chart above shows April might offer a slightly lower overall price, but history shows March is the month gold falls the most and is thus one of the best times to buy.This trend does not apply to silver.
While the silver price is typically flat in March, the best month to buy is June, followed by October. The wisdom of buying in June is further supported by the daily chart above.
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How To Invest In Silver
Buying physical silver is relatively straightforward. You can buy from a local coin shop, but believe it or not costs are usually lower at online stores like GoldSilver.com. Thats because overhead is much lower, and shipping and insurance costs are usually included with a minimum order .
Setting up an online account is not much different than establishing a bank account, and shopping is just like using Amazon. Once your remit payment, your metals can either be shipped to you or deposited into one of our surprisingly affordable storage vaults.
And if youre on a budget or simply want to accumulate in the increments of your choosing over time, you can use our InstaVault gold program or Instavualt Silver program.
Local Coin Shops And Pawnshops
LCS and Pawnshops have a huge varying degree of trustworthiness and fairness in terms of what products they sell and what type of premium they charge. This would take some scouting, learning, and talking to folks and getting an estimate of what they are charging. In my personal experience with local places in my area, these businesses are largely overpriced. Though, there is a difference between being overpriced and nefariously price-gouging customers.Keep in mind that owning an inventory of Precious Metals as a small business is extremely costly, subject to market loss, needs to be insured, has extremely small margins to work with, on top of security and building leases. So again, there is a difference between fair pricing and nefarious pricing but dont forget to consider these things before you give them a 1-star review online! Some folks enjoy the experience of going in, browsing, picking out what they want, and supporting small business and if that comes with 50 cents or a dollar premium over spot, that is OK!
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Both Gold And Silver Appeal To Investors In A Bear Market But The Two Precious Metals Are Not Created Equal
When the economy is tanking and inflation is high, investors often rush to gold. Silver is also viewed as a safe-haven investment, though it gets a lot less hype.
Both precious metals have been sought after throughout history, so they’re appealing when stocks and currencies are losing value.
In August, pandemic worries coupled with a weakening U.S. dollar sent gold prices skyrocketing to over $2,000 an ounce for the first time in history. Silver has also rallied. For the first time since 2013, silver prices soared to $28 an ounce in August, a 140% increase from its 2020 low.
Even in good times, many investors keep a small percentage of their assets invested in gold or silver as a portfolio diversification strategy.
While gold and silver have similar boom-and-bust cycles, there are a few key differences to consider when you’re deciding whether investing in gold vs. investing in silver is a better move.
Physical Silver Is A Hard Asset
Of all the investments you own, how many can you hold in your hand?
In a world of paper profits, digital trading, and currency creation, physical silver stands in contrast as one of few assets that you can carry in your pocket anywhere you go, even another country. And it can be as private and confidential as you want. Physical silver is also a tangible hedge against all forms of hacking and cybercrime. Theres no erasing a silver Eagle coin, for example, but that can certainly happen to a digital asset:
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Gold Is More Expensive Due To Its Smaller Supply
Gold can be prohibitively expensive if you want to buy physical metal. Let’s look to the gold-silver ratio, which tells you how many ounces of silver you’d need in order to purchase a single ounce of gold.
The gold-silver ratio was around 72-to-1 at market close Sept. 9. That means ounce for ounce, gold was 70 times more valuable than silver.
Back in March the gold-silver ratio was actually much higher, breaking 120-to-1 for the first time in history, though the 21st century average is about 60-to-1.
Translation: Even when silver is expensive, there’s a reason it’s known as “the poor man’s gold.”
Gold is more expensive because it’s by far the rarer metal. Worldwide, just 3,300 tons of gold were mined in 2019, compared to 27,000 tons of silver, according to the U.S. Geological Survey.
Alternatives To Investing In Precious Metals
When it comes to investing in precious metals, youll spend more time agonizing over the rise and fall of their value on any given day instead of building equity on a home or rental property or seeing growth in your 401.
Every day you keep an investment, youre making the decision to keep your money tied up in it regardless of its current market value. That means you need to invest in things that will make you more money over timelike real estate and mutual funds.
The most important thing is that you dont invest in anything you dont understand. Having a good investment professional on your familys team can help you tell a good investment from a bad one and help you build wealth over time. Ready to get started? Connect with a SmartVestor Pro in your area today.
About the author
Ramsey Solutions
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.
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