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Why have Gold and Silver Prices been going lower?

13 Jun 2014 | Added by Lisa Casagrande

What Is Happening with Gold and

Silver Prices?

Both gold and silver have suffered a frustrating blow this year, as far as their value is concerned. Gold is about to be oversold, since it only sits in vaults without generating money, and silver has managed to overrun the market and may even reach a price that is near its production cost. An ounce of gold is presently purchased for a price that is approximately USD $ 1250, and the value of one ounce of silver is below USD $ 20. These values are merely a shadow of a price that gold and silver commanded during the summer of 2010, and the best thing that we can expect for now is that those prices stop plummeting. The good news is that this pricing behaviour has occurred before throughout history, and these metals are well known for making a comeback.

Silver and gold are used to produce many necessary items besides jewellery, which means that the reality is that it will only be a matter of time before the demand for these metals reflects their true value and the current concern for them will subside.

Buying metals

Although its price is considered to be low, gold can still be hard to afford. Silver, on the other hand, is much easier to obtain. As long as you bear in mind that buying bullion will not bring you any immediate income, there are not many other assets that are as liquid, and this makes it an excellent savings tool. If you decide to buy silver bullion, you’ll be opting for silver in its purest form, rather than a jewellery item which also will contain alloy and a large percentage of it's value in design and labour fees, not to mention tax. It is of great importance that your provider is a recognised dealer, so do your homework to ensure that your dealer guarantees the bullion's purity and offers a possibility of a buy back when the time to sell arrives. The advantage of buying silver is that it does not strain your resources as much as gold and this makes it simple to adhere to a regular purchase routine that will suit all budgets. 

Making an investment in something that has a low price may seem like a strange move, but this is not a company that is on a collision course- these are metals that have been an integral part of modern society and are in constant demand. They won’t be this cheap for ever.

By Lisa Casagrande | https://www.goldbullionaustralia.com.au

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