Investing In Gold And Silver

Every human being on the face of the earth wishes to make worthy investments that not only give good returns, but also have minimal loss risks. In lieu of recent economic activities, the dollar and real estates seem shaky while gold, silver, platinum and other precious metals seem viable investments. Unlike real estates and the currencies, these metals have minimal chances of getting inflated (since the world does not have inexhaustible resources of the metals), have high stability against economic factors and are durable.

Economic activities that favor valuable metals investments:

Global debt

Majority of countries around the globe have massive debt with the International Monetary Fund, World Bank and other financial institutions. Some of these debts have gotten so bad that they are crippling the economies as governments try to save money to settle their debt. This has led to massive layoffs of employees and minimized funding of major economic activities. These actions regress the economies, and no one wants to invest in an economy that is going down. With this in mind, most people seek something that has more stability and growth potential than properties or money; valuable metals have these qualities.

debt ball and chain

Massive investments by some countries

It is no secret that China and India have embarked on a precious metals acquisition mission, in massive quantities. Other governments’ central banks, also, buy these metals for some security against economic instability. China’s economy is one of the economies that have been doing well over the years, and its massive acquisition of the world’s available gold has taken a large chunk of this metal off the market. India had, in the last couple of years, invested heavily in gold (reducing gold quantities further), but since its government tightened its importation rules, the country has delved into massive silver investment. This investment has, greatly, taken off a huge chunk of the available gem off the market. Demand for these metals, with inadequate supply, results in the value of these metals increasing or, at least, maintaining their value.

Reduced funding for exploration and mining activities

Failing economies have minimal funds to finance gold and silver mining projects as they (economies) seek to re-establish their performance. Mining of metals is an expensive and time consuming operation that requires expensive equipment, human power and oils (fuel) to accomplish. Minimal funding reduces the availability of these requirements, in effect reducing the ability to mine the metals. This leads to further decrease of available metals, which increases their prices. It is also common sense that the ground resources for valuable metals are limited, hence minimal chances that these metals will ever over-flood the market and lose purchasing power as the dollar and properties do.

gold nuggets

Metals investments

Investing in precious metals secures people’s wealth during economic or social factors that limit or jeopardize other investments. People can invest in bars, bullion, currency coins and numismatic coins made of these metals. These forms are durable, as the metals, and since they do not get destroyed by extreme temperatures, water or weight, they will retain their purchasing power long after other goods and services made of other materials. People can, also, purchase commodities of these metals such as vases, kitchenware and ornaments. These items can be disposed of if and when the owner desires.

Individual retirement accounts

Thanks to new rules that allow the inclusion of these metals into IRA (individual retirement accounts) people can purchase and invest gold, platinum, palladium and silver as their long term investment. IRAs have tax advantages that allow the returns gained from these metals’ investment grow untaxed. When investing these metals into an IRA, a person must find a genuine company (to buy the metals), make necessary payments, find an IRS approved third party custodian and choose a plan to manage the investment; appoint a manager, the dealer or self-direct the investment. Unlike with other commodities, IRAs have regulations that govern when the investments can be withdrawn. It is, therefore, paramount that the investor learns the regulations that govern his or her IRA so as to avoid unnecessary interests or penalties.

gold bar and stocks


The choice of a good investment depends on, among other factors, its stability against market forces, ability to give good returns and minimal chances of inflation. Gold and silver pose as excellent investments during the current economic climate that has left economies tumbling over debt and inflation. As the quantities of these metals decreases and the dollar loses its purchasing power, these metals’ prices increase; thereby becoming the most stable investment option.