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Looking at gold and silver investment closer.
Investments in gold are considered the best medicine against inflation for many years. Gold is supposed to be the shield in times of crisis. That is why the number of private investors willing to invest in this asset has increased dramatically in recent years especially when the prices of yellow metal have taken off for the last time. However, gold does not always show the best results. Thus, profitability of investments it is often inferior to relatively affordable silver.

For example, if you invested savings in silver dollar in November 2008 at the bottom of the crisis, now your income would be approximately 83%, but on the other hand gold would be of only 33,6%. And if you decided to make an investment in silver in early 2009 here invest in silver then this precious metal would show better results having arisen to 42,3%, while gold would reach only 13,7%.

For example take a longer 20-year period which covers more than one crisis and not one of the stock market rises. For example, in August 1989 you would invested 100 000$ in each of these two metals. For two decades of investment gold rose to 254 690$ and in silver up to 268 200$. For reference, the same amount invested in US index of wide market S & P 500 rose up to 282 570$. If you withdrew money at the peak of the stock market before the crisis exactly October 9, 2007, the result of 18 years of investing in silver would have reached up to 254 560$. And as for gold you would have about 200 110$. But by March 9, 2009, the minimum of the US market in crisis, investment in gold would have the income up to 251 450$.

So for the past 20 years, investments in gold and silver gave similar results. However, investments in silver were much more profitable in most cases because of quite favorable circumstances. But I’d like to emphasize one peculiarity that regarding the S & P 500 it always looks much better these precious metals, only during the recovery in the stock market.

The average annual inflation in the USA over the past 20 years has been being equal to 2,8% per year. For example in 1989 you could invested 100 000$ in order to get at least $ 173 725 in the nearer future. Therefore, the results of investment in gold and silver and in the stock market have got a certain potential to be considerably higher than the inflation threshold.

So in many cases money is supposed to be much better than gold. So a private investor should think before giving preferences to any asset in times of crisis. I think that you’ll digest this information in the right way.

At this moment precious metals’ attractiveness is seriously increasing. People who want to get cash for gold are creating a unique chance on the market.

If you are one of those who plan to get some cash for gold, then please make sure that you know the typical tricks of the cash for gold.

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