Price rallies, such as the last leap of gold value, can cause FOMO – that is, the fear of being missing us. Last week, the price of gold exceeded $ 3,700. For an ounce, i.e. about twice the level two years ago – and this precious metal is on the right track to the record year.
The high unit price of the bars and coins of zlotys can make some investors and collectors feel pushed out of the market. A single bay or coin is worth as well as a good used car today.
But there is another precious metal, which has also recently grown in the price – and which turns out to be much more accessible.
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“Gold prices increases additional silver purchases, perhaps from investors who did not fully use the gold rally,” wrote James Steel, a precious metal analyst at HSBC last month.
The price of silver has grown more than gold
In percentage, this year's silver rally, of 47 percent, exceeds 39 percent. Gold growth (as of Friday south). The profits of both metals in two years are surprisingly similar.
– If the gold continues to grow, silver, with some delay, will do the same – says Ed Yardeni, market veteran and president of the advisory company Yardeni Research.
He predicts that the price of gold will reach $ 4,000. Until the end of this year, like other investors from Wall Street forecast.
At the current price of approx. $ 43 For an ounce of silver, thanks to the lower unit cost, it has become an entry point for some beginner investors who do not have to spend so much cash, to start learning the ups and falls related to the possession of physical precious metals.
This is what one collector did, who had previously told Business Insider that he started with silver, and later he moved to gold, when he gained more confidence in buying metals and realized how much more storage space requires silver.
“I will not be able to wear a suitcase of full silver,” said the collector.
See also: What happens to the loan in the event of a war? The lawyer answers difficult questions and advises
Risk of investing in silver
Although silver has many features in common with gold, It is also associated with greater riskmainly due to wide application in the industry, which makes them more dependent on the condition of the economy.
– Silver is more variable – usually both up and in the bottom – so it's a wild ride – says Business Insider Stefan Gleason, general director of Money Metals Exchange, a large American seller of precious metals. – For this reason, one should not look at them as a short -term investment – he adds.
Although silver has no advantage of gold as a widely accepted value reserve, in recent years it has recorded several price rallies strongly correlated with gold, although with some delay.
“Silver works largely like a leveled version of gold,” explains Gleason. – It grows more strongly when the gold goes up, especially in the second half of the bull market, and falls harder when the gold loses – continues the expert.
He sees Gleason in silver greater growth potentialcurrently taking into account the historically wide ratio of gold prices to silver. Investors pay attention to this – wrote Steel. However, Steel's August forecast did not assume that silver prices would last long above $ 40. for the ounce.
This may be due to the fact that some collectors use the current period of relatively high gold and silver prices to cash their resources – noted Steel. This increases the supply on the market.
– In fact, we buy more metals today than our clients and from society than ever before Gleason added.
Despite this, as every avid collector knows – and the beginner will quickly find out – Buying precious metals is a long -term game. Property often raises new issues to solve, such as where to store them or insure them, and to sell them if necessary.
These lessons can be learned as well on silver, as in gold – and for a fraction of the cost.
The above text is a translation from the American Business Insider edition
