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Best Investment Tips on Trading Gold or Silver

Related post: Commodities Trader Glencore (GLEN.L) Carries More Risks Than You Expect

By Francine Schaffel


Ok so you have been convinced that purchasing gold and silver may be the smart thing to do in today's economic system as the precious metal rate today continues to rise. Additionally you realize that you have to act and purchase gold opportunities or silver investments right now. But the question is; what forms of gold and silver should you buy? How do you buy? What types do you purchase it in?

One of the most essential things to remember is to buy real gold and silver not fool's gold and fool's silver. You need to buy gold coins, buy silver coins and gold and silver bars, physical precious metals that you can hold in your hands. Now you do not actually have to keep them inside your hand, you could have them kept in one of Brinks two locations.

However physical silver and gold is the form to hold. There are many other forms of gold and silver out in the marketplaces and many of them are nothing but fool's precious metal or fool's gold in my opinion. Number 1 would be the etfs, otherwise known as EFT's. It is widely accepted in the precious metal community the exchange traded funds don't have all the silver and gold that they say they do to back them up.

What you are really buying is actually price contact with the precious metal rate today when you buy these funds. You are not buying bodily gold and silver that you can hold as well as touch. Purchasing physical silver and gold is one of the the majority of private opportunities around. It's a transaction between you and the seller and nobody else knows about it. When you buy EFT's you are putting that personal investment into the hands of the banks which have caused the entire economic financial crisis in the first place. Trust them to your personal peril.

Another thing to watch out for are the pool accounts and records. They probably don't have all of the gold and silver in order to back up the investments in the pool company accounts. Basically you're investing in commodity contracts. So you are getting contact with gold and silver prices again and not the real thing.

There are also numismatic coins or collectible cash. Now when you buy a numismatic coin, you could be paying many times the particular gold or silver content material that is in the coin because you are actually paying for the rarity and how a lot someone else covets that particular coin. While, with bullion coins and bullion pubs, their value is derived from the planet spot silver and gold spot price at a moment. You will find hundreds or thousands if not millions of purchasers out there with regard to gold and silver gold coins.

The other thing to appear out with regard to in enthusiast coins is the fact that in certain occasions - state when there is high inflation, you could have thousands of these coin selections come to marketplace at the same time resulting in the numismatic premium suddenly disappearing. So that coin you paid thousands for would fall in price in order to its silver or gold value. Simultaneously physical gold and silver coins may be doubling, tripling or even quadrupling in price.

One last thing, beware of leverage; it is a two pronged sword. The gold graph and the gold chart have shown values rising steadily on average for the last few years, making money for all those holding the physical metal. A large number of individuals using leverage of border account possess actually misplaced a lot of money. Numerous unscrupulous sellers will talk you in to buying on margin and will continue to sell you more as the cost goes up. But all marketplaces have volatility and when these people drop you end up in a border call situation. Many of these accounts are liquidated at a loss before you are permitted to deposit more money into the account to cover the margin call resulting in you losing money with what should have been a lucrative market. Depart the leveraged accounts towards the pros particularly in the commodity and options realm.




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