March 1, 2011

Silver versus Gold - Spot Price and Value



Welcome to the Silver versus Gold - Spot Price and Value Blog. The debate between the two is an ever changing dynamic due to the constant fluctuation of the Silver to Gold Ratio. Investing in silver and gold has become popular in recent years and is destined to become even more so due to lack of confidence in the U.S. dollar. It seems that whenever you put on the television or listen to the radio, you hear an advertisement for buying gold. For most people that are potentially interested in investing in precious metals, the information that you are constantly bombarded with can be a bit confusing. What should I invest in? Who should I buy from? and How much will it cost?; are just a few questions that come to mind. The purpose of my blog is to help the average joe on the street gain some basic knowledge on how to buy gold and silver.

I have been investing in precious metals, particularly silver for the last three years. I would actually consider myself an investor/collector because my interest in the coins and bars I've purchased exceed just their intrinsic value. When I first started, I made several mistakes that acutally caused me to loose money on my initial investment. Fortunately, I was purchasing silver when it was still around eleven dollars an ounce, (or per one dollar coin plus commision) and have since made over double my money back as of early 2011. With the price of silver hovering around thirty dollars and ounce, many investors are apt to pause after such a steep increase in value over a short period of time. I myself believe that the price of silver is at a crossroads and the direction as to where it is heading will depend upon our leaders in government. It is still advisable to have gold or silver in your investment portfolio to protect yourself from any unexpected events. You could do a lot worse than having some Silver American Eagles. My blog is new, but the vendors advertising on my page are worth investigating as part of your research. I will be adding more pages and posts in the near future so check back often.

February 28, 2011

Silver vs. Gold - Silver's March to $40 and Ounce



Silver has shown strength over the first two months of 2011, as the price of Gold struggles to break through it's historical top of around $1420.00. Silver's momentum should continue because of its value, not only as a safe-haven investment, but also as an industrial metal. Commodity prices are going higher due to the unrest in the Middle East. The overthrow of the Egyptian government along with violent clashes in OPEC member Libya have been causing investor concern worldwide. Looking forward, the situation should remain unstable for awhile. Elsewhere internationally, North Korea's recent comments on its ongoing struggle with South Korea is adding more unstability to the world markets. Is it just more chest thumping like we've seen in the past, or are they serious threats?

Looking forward to what's going on domestically, we see the inevitable clash between those who want increased government spending and those that want to slash the national and state budgets. Yes, the economy is growing, but the growth is slow and the job market isn't getting any better. Many new state governments want to reign in the spending and keep taxes low in order to create a better business climate for job growth. They are being met, however, with loud protests by the government employee unions and their supporters, especially in Wisconsin. Will the Governors and State Legislatures be able to put up with the pressure being put on them, or will it be business as usual with more spending and higher taxes.

All this uncertainty, both foreign and domestic, has been great for silver investors. The question is should people still be buying? Many experts say the anwer is, yes. Silver is still in short supply and the demand has been greater than ever. Some industry insiders have a 2011 silver price target of $42 and ounce. They key is to not be impatient and panic buy. Watch the silver market and buy on the dips, especially during slow news cycles. When looking to add to your silver position don't forget to check out APMEX, your online source for the best deals on Silver American Eaglesand Brand New Silver Bars and Rounds.