środa, 14 marca 2012

Investing in silver or gold?

What better gold or silver. These metals often move in the same direction. If the risingprice of gold is usually the price of silver rises and vice versa. Distinguished by the factthat silver is rising faster than gold, but also during the declines in commodity prices, itloses in value faster than gold.


95% of the gold that has been mined is still in circulation. When it comes to the silver is 95% if not more, which has been excavated so far gone. It has been used in industry and can not be recovered. Bank around the world have stocks of gold calculated in tonnes, and have virtually no silver. Silver is much cheaper than investing in gold and silver can be made even without agreeing this with your spouse. This means that as investing in silver is a better advertised it a lot more people will be able to afford to invest in not driving the same increase in the price. Gold compared to silver has little use.
Compared to other industrial metals silver is used in many devices in such a small amount in relation to the size of the final product that is virtually impossible to retrieve it.Silver immediately after the oil is most commonly used material from approximately 10 000 different applications. With increasing technological advances will probably silver many new applications.
All metals have a sort of mechanism for controlling their costs. This mechanism consists in the fact that if the price rises quite strongly that automatically decreases the demand for this metal because when people are looking for substitutes for this metal. This mechanism does not work on the silver market, however, because it is used in a huge number of areas, but relatively small quantities, which makes it impossible to recover.The second thing is also that from there is no other metal, and similar properties in such a low price as silver. Industry has no choice but to accept the price increase. The nearest priced metal with similar properties to silver is palladium, which oz at the moment it costs almost $ 800. So I see there is the potential for higher prices of silver.
National governments in 1950 were 10 trillion ounces of silver in stock, which it has since gradually pozbywały. Today, no longer have stocks of silver at all.

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