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August 23rd, 2011 | Silver A Good Investment
Silver a Good Investment in Stock market
Article by Shimran
Silver a Good Investment in Stock market Investing in precious metals in the current economic times is actually a sound economic investment for the medium to long term. While you could be looking to make a quick buck from a silver investment on the short term, you will need to check the broker or trader’s fees to be sure that you come out on top. Investing in precious metals will not produce any cash flow and interest as such however silver differs from gold in that its use in manufacturing is far more widespread. At that time silver had an index price compared with gold where gold was worth 15 times the value of silver. By 2010 the relative values show that gold is worth 60 times the value of silver for the same weight. An investment in silver is very much a speculative investment and such an investment is a good hedge against inflation, the same could be argued for gold. Actually the opposite is true, in the case of gold its value rises when there are concerns about the world economy or the currencies of leading world economies a run on the US dollar, reducing its value will often cause investors to invest in gold stocks. Conversely, the price of silver tends to rise when the economic situation is positive and the reasons for this become clear when you study what gold and silver are used for Silver has many uses particularly in the latest electronic equipment. In addition, it is used in many other industrial processes this is in extreme contrast to gold. It is surprising that only about 3% to 4% of total production went in coins and silver bars, 30% on average per year is used in jewelry while the use in the photographic industry consumes 26%. Because of its industrial use, a large amount of silver is literally thrown away the silver components could be too small to warrant recycling. As the world economy returns to steady growth, an investment in silver is an extremely good idea, emerging economies have a demand for consumer electronic products such as mobile phones, LCD TVs and many other products of this type use silver in their production. It is estimated that demand will outstrip supply for the forthcoming years by as much as 20%. Silver should be bought silver coins it is also available in bars, and normally silver can be bought at local coin shops. If you are not checking the market values daily of your silver investment, a good rule of thumb is that if world economies are growing in line with or over expectations your silver investment will be a good one. If economic growth is expected to fall during the time you plan to cash in your investment, you would be advised to sell earlier rather than later to get a maximum return.
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