Precious Metals

Looking For Gold And Silver Deals Through Direct Purchasing

27
Aug0

The recession brought about a great deal of interest in buying gold and silver. The reasons are not difficult to fathom – investors had a terrible experience with the stock market and thus were looking for something that was more stable and could not only hold their savings but also given them a good return on investment. Ordinary households took out cash loans and purchased gold and silver in the hope that it would increase in price, and they were certainly not disappointed. Even now, the prices of gold and silver keep rising by the day and investors have found a comfort and safety in precious metals. However, there are a number of different ways to invest in gold and silver, with the best bet being physical metal. The reason for this is that physical gold and silver, in the form of coins, bullion, etc. always sells at a higher price than paper contracts like ETFs or futures contracts that track these metals, since physical metal eliminates the risk factor. Paper contracts, on the other hand, might fall out of confidence.

While buying gold and silver, the simplest ones are through coins and bars. Usually, gold is bought and sold in coins and silver in the form of coins and bars. There is a huge spread in the buy-ask prices of these metals that investors should make use of. This means that the dealer who buys silver will do so at a price less than the spot price and while selling it to an investor, he will sell it at a price higher than the spot price. This difference in pricing can at times be quite high. For an investor to really make profits by trading precious metals like silver and gold, he will need to find ways and means to eliminate the extra fees and other premium pricing and be able to purchase the physical metal directly at the spot price or lower. This is difficult for ordinary investors but they should employ all means available to them.

The simplest way to get silver and gold at spot prices or below them is to try and find sellers. Due to the economic crisis, it is not hard to find people who want to sell their jewellery, coins, bullion, etc. so that they can use the money to pay bills. The easiest way is online, through sites that can connect buyers and sellers, such as Craigslist or eBay. Sellers of gold and silver usually get prices that are reasonably below the market spot prices for the metals if they sell their gold and silver at a local pawn shop. Thus it is not surprising that a number of sellers prefer to sell directly to interested individuals, so that the transaction can occur at the spot prices or even slightly higher. It is a simple win-win situation. At times, when people are in need of money, they can sell at a significant discount from the spot price, and if one is able to spot such investment deals, they can yield high profits. Simply take cash loans for investment and buy the silver and gold that is available for the cheapest rates.

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Investing In Copper: Tips And Pitfalls

26
Aug0

As the stock markets remain volatile throughout the world, people are looking to diversify their investments away from the stock market into other areas. One of the most promising of these is the market for precious metals. Gold and silver have traditionally served investors very well and have been used for thousands of years for trade. However, now a new metal is emerging as the preferred investment option, which is copper. This shift is a result of the increasing use of copper in almost all industries. This cause real demand for copper which is different from the other precious metals that are traded in the market like gold, which doesn’t really have a strong industrial presence. Thus the price of copper follows the simple economic law of demand and supply and investors are increasingly being interested in this metal.

A huge advantage with copper is that it is much cheaper than both gold and silver. Therefore one can invest in a significant amount of copper simply by taking out a payday loan. Because of the increased interest in copper from investors all over the globe, it is today possible to have an option of investing directly in copper in the physical form, which is usually in the form of bullion bars that are similar to silver. However, being much cheaper, the copper bullion bars are usually much larger and also cost less. The usual size is up to a pound of copper, which only costs a few dollars in the market.

One disadvantage of investing in physical copper by buying up bullion bars and coins is that the price premium is very high. Thus if copper is trading at $3/pound, it is very likely that a pound of copper bullion will cost at least twice or thrice this amount. This is because the creation of the bar requires money and this is passed on to investors. Thus if someone desires to invest in copper without actually buying physical copper and paying this extra price, it is most convenient to opt for copper exchange traded funds or ETFs.

Copper tends to follow the industrial demand very closely, so when there is an economic boom, expect to see a ‘bull run’ for copper. One should be aware of the financial news in general emerging from all over the world, especially the US and China. It is best to opt for subscriptions for financial magazines that way when the boom in the market happens, one will be well aware of it and able to obtain a fast payday loan to invest in such material.

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Commodity Trade – Silver Investments

18
Aug0

“Stay extended precious metals” .

I’m beginning to believe that’s Graeme Irvine’s mantra.

He’s the enterprise columnist on Longer Life’s Bourse page, and I’ll leave it to you to discover his factors for this four-word chant. Amidst Graeme’s siren calls, I’ve taken notice of his recent every day listings of silver transfers. It seems that HSBC-Hong Kong is in the process of accumulating a substantially high percentage with the current marketplace inventory. The range is some thing like 60%, an achievement I discover as breathtaking as it’s intriguing.

Why would that a lot with the world’s investment-grade silver be moved to a single depository? So far, I’ve not been able to locate anyone willing to supply an answer. The accumulation is public information, so I’m not suspecting a conspiracy.

I think most investors recall the Hunt brothers’ clumsy attempt to corner the silver industry three decades ago — driving their Texan empire from billionaire to bankrupt inside eight years — and wouldn’t believe of trying to duplicate that stunt.

Super-investor Warren Buffet is, of course, a lot much more sophisticated. His acquisition of 130million ounces of silver approximately nine years ago was made in tranches calculated to coincide with the market rather than drive it. All outward appearances indicate that he has no clandestine intentions; instead, he’s merely substantiating his confidence inside the metal and achievable lack thereof inside the long-term strength with the dollar.

Perhaps the HSBC-Hong Kong hoarding can be a result of an announcement made in June 2005 by the United Kingdom’s Barclay’s Financial institution in which they filed their intent with the USA’s Securities & Exchange Commission to establish an Exchange Trading Fund (‘ETF’) for silver. Specifically, the applicant is really a Barclay’s subsidiary, iShares Silver Trust, and the process gained momentum in January 2006 when the SEC approved their listing about the American Stock Exchange.

The Silver ETF is meeting with strong resistance, most notably by the Silver Users Association (SUA), who represent entities who make, sell and distribute products related to silver. Their complaint is that so that you can support the ETF, so much silver would have to be taken out from the marketplace and held in reserve that its membership would be burdened by the metal’s greater price. As the SUA membership processes 80% of all silver produced in the USA, they represent a significant voice in this matter.

Ted Butler is one of several most respected silver analysts in the world. His opinion is that, no matter what the outcome with the Barclay’s application, the entire episode is really a positive development for silver investors.

Initial, let him explain how Exchange Trading Money for commodities operate, and then describe how the Barclay’s proposal is being positioned:

“In order to establish a commodity ETF, a monetary institution buys and stores a quantity of the commodity in question and then issues shares of common stock at a fixed unit of conversion to represent fractional ownership of that commodity. In the case of silver, Barclays would purchase the metal, in industry standard 1000oz bars, have them stored in London and elsewhere, and issue common stock shares in a ratio of a single share of stock for every ten ounces of silver. The shares would then be traded on a recognized stock exchange, hence the name, exchange traded fund. Within the case of the Barclay’s Silver ETF . they’ve even made a decision for the stock symbol, SLV. The amount of silver bought and stored would increase and decrease depending upon the purchase demand for the shares, similar to how the gold ETFs currently function.”

The practicalities of your silver ETF include:

– Stock certificates are definitely easier for your investor to store than the metal itself, and

– The ‘common stock’ format enables much more categories of investors the eligibility to participate.

What is interesting about the Barclay’s proposal is that its goal would be to put 130million ounces of silver into reserve, the exact level of Warren Buffet’s holdings. Could they be using that precedent being a model? Burton notes that even though Buffet was careful not to disrupt the market, the price of silver still doubled in the course of that accumulation. Furthermore, Burton says, “I see nothing inside the Barclays prospectus suggesting such purchasing restraint, either in time or price.”

So, Butler reasons, this makes the situation most favorable for involved investors:

“This silver ETF announcement is a true win-win for silver investors. (If) their silver ETF becomes effective, the impact on the price tag of silver will be great. That’s win number 1, obvious and straightforward.

“But if . this ETF by no means sees the light of day, that will probably be a big win as nicely for silver investors. Why? Since it will prove for all to see just how critical the supply/demand and inventory situation is in silver. If the government says no method to this ETF, it will probably be for one reason only – there is not enough real silver within the world to fund it.”

Either way, it’s a development worth watching. Graeme lists the Comex figures every day at the finish of his column and usually mentions when one more allotment of silver moves to HSBC-Hong Kong. The growth of those figures could nicely be the ‘tracer’ of issues to appear.

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