Archive for March, 2012

Silver on the Rise, On Par with Gold: is it time to buy silver? 

March 28th, 2012 No comments

While gold is a hot commodity right now, for those who want to buy silver, there are hints that it will be a big commodity in 2012. Over the past few years, silver has followed in gold’s footsteps, often reaching similar milestones as gold, but there have been instances when silver has taken the lead in value. Is it a good idea to buy silver?

  • Historically, silver has proved more volatile than gold, fluctuating more dramatically, but while the silver market is generally smaller than the gold market, silver has mostly followed the same price patterns as gold even though fewer investors are keen to buy silver.
  • In 2011, silver almost doubled in value in a matter of months, reaching a high of $49.21/ounce around April. Gold also increased at the same time, but not such a percentage. This silver high ended in early May.
  • Silver has grown in value 37.62% from 2001-2010 and is continuing to rise suggesting that people are more willing than ever to buy silver. It is also worth noting that over the last decade, silver has ruled the precious metal markets in terms of returns, sitting at an annual return of 20% while gold is at 19% (and copper at 18%).
  • Surprisingly, though, this trend was not replicated at all last year. Gold increased overall in 2011, while silver decreased by about 10%.
  • In 2012 however, gold and silver are both currently surging since the Federal Reserve has now prolonged its low interest rate policy from mid 2013 to late 2014, making it possibly an ideal time to buy silver.
  • In 2012, some analysts predict that there is a strong possibility silver will at some point reach the $50 or $60 threshold and catch up to gold in terms of growth.
  • Reuters, however, is forecasting that silver will only increase up to $35 in 2013, despite some potential $50 highs, while gold will move to $1,835, which is only a 4% increase from their 2012 forecast.
  • It’s quite likely that whatever happens, silver will closely follow behind gold’s fluctuations, with the potential to surpass it in growth at various points in the near future, especially given the instability of the global markets.
  • If you’re looking to buy silver, it could be better to invest now, while it’s cheaper to buy silver. Also, some investors are showing a reluctance to buy silver, given its slump in 2011, making it more accessible than gold.

Will be buy silver or gold in 2012? Perhaps some investors will be tucking a little of both into their portfolios.

Is 2012 the Right Time to Sell Gold?

March 14th, 2012 No comments

If you’re looking to sell gold, it’s important to do so when you can make the maximum profit. Like other investments the value of gold is often affected by economic trends like inflation and national financial crises. So how do you know if 2012 may be a good time to sell gold?

  • 2011 saw the performance of gold rise dramatically around July and August. But with the significant economic declines of late 2011 and the Eurozone debt crisis, many investors found themselves having to sell gold to cover other losses, creating fluctuations in gold prices. However, there is much hype in the market that gold will likely rise in 2012, making it 14% higher than its value in 2011 and 26% higher than it was in 2010, according to Reuters. So 2012 might just be the right time to sell gold and make noteworthy profits.
  • While gold is increasing in value, its rise rate may well slow down. While the increase in gold value has jumped significantly in the past two years, some commentators suggest that this may slow down. So while gold will still increase, its rise might not be as dramatic, meaning that 2012 could be a good year to sell gold.
  • It may be a good idea to hold onto your gold if you’ve only had it for a short period of time. Gold value is largely influenced by supply and demand and some claim that gold still has much potential to increase in value. If 2012 is an early year in your gold ownership, you may want to wait rather than sell gold now. However, nothing is guaranteed, so if you bought gold years ago when prices were lower, 2012 may be a good time to sell gold if you need to cover shortfalls in other areas of your portfolio.
  • Gold buying is up around the world, especially as gold popularity continues to grow as an attractive commodity for investors, banks and other institutions. As a gold owner, this is good news for you, as it means that this might be a good time for you to sell gold or at least look into the potential of your investment, even though buying prices are high. Many other investors are looking to jump on the gold train, meaning it could be an opportune time for you make the most of this popularity and cash out if you need to sell gold.

It will all come down to your situation and your confidence in 2012 gold prices. For some it may be the perfect time to sell gold, while others may decide to stock up instead!

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