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Wednesday, August 2, 2017

Gold price and silver price investing



There is many factors influence the gold price & silver price. Gold & silver prices change every minute and there are many factors affecting gold price & silver price. Some of the reasons for changes in the prices are:
  • Markets
  • Currency values
  • Supply and demand
  • Buying power
  • Economic trends (silver)
  • Inflation
  • Strength of dollar
  • Government policies
The price of Silver is always moving, partly because large entities and governments typically have substantial buying power and can impact Silver prices through supply and demand. If a government makes a large Silver purchase, the demand for that product could affect Silver markets immediately. Supply and demand determines prices for commodities, and Silver is no exception.
Viewing the historical Gold price & Silver price can help you with your purchasing power. The Gold price today depends on many factors, including production, central bank reserves, and the value of the U.S. dollar, worldwide jewelry, and economic downturns. The central banks in the United States, Germany, Italy and other places have an effect on the Gold price per ounce as they diversify their holdings. The price of Gold today goes up as central banks move away from paper money and buy more gold.
In addition, determining what is the current price of Gold is affected by industrial demand, like the manufacture of medical devices, such as stents, and electronics, such as GPS units. Finally, price of gold are affected by how much Gold is available.
The price of gold today is very important specially to the future of couples approaching marriage in Egypt, which involves gold purchases and off course a golden ring, in general concerns of investors rise daily as it linked to the global economy At a time when the economy of many countries deteriorated, but gold remained as a safe investment than currencies savings .which is still in high demand!
To invest with confidence an investor has to understand this interconnection of all player markets. In a global economy, it is no longer prudent to invest with a national view of only one market it has to be diverse and collective. The reason of gold rising or falling is related to various market cycles, & what is happening in other political & economical updates, it has huge effects!!
Choosing the right gold product is really important for an investor.
1- Physical gold is a part of most people's investment portfolio. Physical gold could be invested in the form of gold jewelry, gold coins or gold bullion. The vaulted gold pays lower costs and provides a high liquidity.
2- Gold backed securities are one of gold investment ways which indirectly invest gold.  The dealing spreads are comparatively lower than physical gold (such as gold jewelry, coins and small bars).
3- Gold mining stocks do not directly invest in gold but in gold mining companies.
Compared with other gold investments, it is more speculative. Gold mining stocks carry risks.
Industrial, dental and medical uses account for around 12% of gold demand. Gold has high thermal and electrical conductivity properties, along with a high resistance to corrosion and bacterial colonization. Jewelry and industrial demand have fluctuated over the past few years due to the steady expansion in emerging markets of middle classes aspiring to rapid capitalism lifestyles.
Silver has thousands of essential industrial uses. Silver is the most electrically conductive, thermally conductive, and reflective metal on the planet that has no known substitutes
Keep in mind risks associated investing in gold & silver may include:
  1. Poor long-term returns.
  2. Doesn't throw off cash. (Not productive) such (Restaurants, Factory, Firm...etc.)
  3. Very hard to predict.
  4. Inefficiency.
Gold options and futures are the gold investment derivatives which are short term speculation on the future gold prices. The markets are more complex and trading in speculation but not in physical gold. Thus, those ways of investments are suitable for more experienced and sophisticated investors. To buy options is risky, more investors lose than win. The prominent advantage is that the investor can control a large investment with a small, and limited, amount of money. The disadvantage is that options expire within a fixed period of time. Gold options and futures may bring a large fortune; it also may be lost all in an instant.

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