Gold and silver are the two most popular precious metals among investors. When people are trying to diversify their assets to include commodities, these two are almost always on top of the list. The great thing about them is that they are well-known quantities. People are familiar with them so there isn’t much to explain. They know how valuable these assets can be especially over the long run. Of course, those who are putting their money in them should learn more about the market including gold and silver rates. The current prices and historical trends will provide them with valuable insights.
The Historical Significance of Gold
Gold has been the measure of wealth since our ancient civilizations. We have unearthed Egyptian tombs that are covered with golden masks and jewelry. When mercantilism was still in force, nations sought to have the biggest vault of it in their treasury to signify their power. Until recently, central banks all stored large amount of bars to guarantee the wealth of their country. It is used in jewelry and other items that claim to be premium. It is, in short, a social symbol. It has managed to retain this image throughout the years. This trend is likely to continue on in the future.
Gold as a Hedge against Recessions
In fact, it was one of the brightest stars in the recent recession its price went up while almost everything else went down. Investors everywhere flocked to it as they tried to salvage their funds. This is not an isolated incident. We see this phenomenon happening whenever there is volatility in the economy. Gold is a sure bet in turbulent times. Whatever happens, having it will allow you to keep a good amount of wealth such that you will never have to worry about a total wipeout. Right now, the rates are rather good and is near the 10-year high.
Silver as a Viable Alternative
Those who are looking to diversify their precious metal investments should check out silver as well. Study the trends when it comes to silver rates especially its known ties with different currencies. For example, the countries where silver mining is a big part of the economy should be monitored. The rise and fall of their currency is often linked to the rise of fall of silver prices. Lots of people purchase gold and silver coins for their retirement years. It lessens their dependence on stocks which it always a good thing. They buy low and hopefully sell high. It’s all about the timing when it comes to these things.
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