The best scenario is for the gold price to rise and the Aussie dollar to fall at the same time. Then gold investors can benefit from both, higher gold price AND the falling exchange rate.
Many of us have a small, physical stock of these potential investment products. In fact, many of us pass down our gold and silver collections through generations, convinced it’s the embodiment of the family fortune.
And we may not be too far off with this wishful thinking. There’s certainly a lot going for gold and silver, making their ideal high value quite promising.
Gold Getting Old, or Bold?
Investors have certainly backed off the gold train recently, and for good reason. Its value does not seem to be going anywhere. It’s been at a plateau for longer than any investor likes.
But a bullish rise in gold value could be just around the corner.
And there are many signs that point to this.
And the biggest one is the US dollar.
Due to the increase in sovereign debt, uncontrolled increase in money supply and many nations’ reluctance towards US treasuries, interest rates are continuing to rise — meaning the US dollar is not looking good.
But this instability is making investment into precious metals look better than ever.
Add these rising US interest rates to the prospect of a major war breaking out in the Middle East and a movement towards anti-establishment parties across Europe…
And it’s looking like the perfect time for a safe, precious metal investment.
The Many Means of Silver
Both silver and gold are good for long-term investments to protect the value of your wealth.
Unlike gold however, silver is often used for more than just investment purposes. Silver is an industrial metal and has many hundreds of other uses, which helps to drive up demand.
As a fantastic conductor of electricity, silver is used in many electronic devices. It doesn’t corrode and is ideal for the circuits of household appliances.
It’s also — as anyone with eyes can tell — an amazing reflector, making it perfect for a coating on glass surfaces.
A more innovative usage is its role in the health industry. The compound silver sulfadiazine, for instance, is great for treating burns.
As such, silver is extremely volatile, both materially and economically.
And while this gives it potential for quick and strong returns, it also presents a danger for quick and drastic declines.
Nevertheless, silver can easily absorb the changes of the market, making it suitable for a versatile and steady long-term portfolio.
Gold & Silver Stocks
Precious metals are a unique way to diversify your risk and protect your portfolio over the decades.
For the speculators out there, check out our articles below on gold and silver stocks to find out how they can deliver leveraged gains that support your portfolio performance.
With daily updates, if you stick around, you’ll know when your jewellery will be at its most valuable.
The world gold price is trading at the highest level since 2012! That sounds bullish. But, despite my confidence, we’re not in a gold bull market yet. A true bull market only happens when gold…