Two years back an ounce of gold was priced at $600 an ounce and today it is priced at $1400 an ounce. Similarly Silver was priced at $10 an ounce five years back as compared to $30 today. The price trend says that the gold price has increased by more than twice and silver almost thrice. Any logical investor will think twice before entering the gold/ silver market doubting that the market has already peaked. So my first round of advice to my investors will be to stop worrying about gold and silver to have ‘peaked’, they are still far away from it. And basically the way feds are printing dollars and real estate market is getting over valued the demand for gold and silver will continue to grow. Investors has a doubt and they are justified in assuming that the recent price surge of gold and silver is only a temporary phenomenon eventually there will be price correction. In this article the team of getmoneyrich.com we would try to motivate our investors to develop an alternative and more clear way of thinking about investment.
It is very important for investors to learn basics of investing. This will help you see through the temporary price fluctuations and resist the temptation to sell at bad times. Preparation of Investment plan is a key that all investors shall spend time on. When a new investor starts investing he always do a lot of second guessing about buying and selling assets like gold, silver, shares, mutual funds etc. It always very helpful all types of investors to their own research, study and formalization of an investment plan. In case you have decided to invest in gold and silver then do your own evaluation and then enter the market. Your investment plan will work as a light house during your investment journey. It will allow you to stay focused and motivate you in tough times.
Principles of investing always dictates us to be an early bird, the people who can enter the race early are the ones who are most successful. To enter early cannot always happen by luck, you need to brush up your investment instincts and this can be done by reading quality online contents, financial daily’s etc. Even now entering the gold and silver race is like entering early. Because the loner term prospects of precious metal is phenomenal. It is interesting that less than 2% of western world population actually owns gold and silver as their investment options. And the way US dollar is getting printed and Euro loosing its steam people will eventually jump of gold and silver vehicle to continue their investment journey. Paper money is going to be a trash very soon. It is probably a good time when investors should start converting their paper assets like stocks, bonds, mutual funds and cash into physical gold and silver. Do it gradually, getmoneyrich.com recommends that start with conversion of 25% of your portfolio into gold and silver. In today’s market precious metals are the only inflation hedge available for investors.
Is it a Good Time to invest in gold and silver?
Some people may say that gold and silver has already become overvalued of basis of price history. But comparing gold and silver with other asset class there is a strong possibility that the present rate of rise of gold and silver prices will continue to step up. The gold and silver is still far away from its peak. This means you can still buy more gold and silver and hoard in your closet. The problem with most investors today is that they are comparing an ounce of gold and silver with paper currency. But this paper currency is devaluing at aggressive rates. Soon these same paper notes will worth a dime and no way comparable to the worth of gold and silver. Focus on accumulating more and more ounces of gold and silver and do not worry about whether you are buying at $30 or $40 or $50. A point in history will come when people will run after gold and silver like insane and there will no gold and silver left in supply. At that time there will be a huge demand and little supply, that is the moment in history when the accumulators of gold and silver will really profit