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Gold IRA Investment
Gold Versus Silver


When people are considering whether to invest in precious metals or not, one of the first things that come to mind is whether they should invest in gold. Many give little thought to investing in silver. One of the main reasons for this is that the TV and Radio News regularly reports the price rises and falls in gold bullion, but very rarely does silver get a mention. In this article I want to cover a little bit about whether silver is a better investment than gold.

gols and silver bars

Let's be honest, at this time of recession, few of us have huge amounts of money to throw around. It is sad but true. One of the main reasons as to why people look into investing in silver is because it is considerably cheaper than gold. In fact, it is up to 45 times cheaper at times. Now of course, this means that you are going to get less of a "physical return" on your money since you will be spending less, but it is still a great way to break into investments and hopefully make a profit - especially in the long term.

At the moment, many experts actually believe that silver is undervalued, (traditionally it is around 15 times cheaper than gold) and thus for this reason alone, it's investment potential is attractive. After all, one could reasonably conclude that if the relationship between gold and silver renews to historic standards, the price of silver will simply rocket.

In the silver market (and the gold bullion market for that matter) there is something known as "paper futures". These are purchased by investors predicting future price rises and falls. This has a significant tendency to suppress the price. There are many silver futures currently in operation. The benefit to those who invest in silver is that if the price begins to rise, silver future owners are going to need to buy silver to correct their position. If they don't they may face financial ruin. Any default on these papers will also show there is a silver shortage and will undoubtedly undermine the market. The result of this is that those investors who are holding physical silver, will see a considerable demand for their holdings enabling them to easily sell their investments in a rising price market. The same can't be said for the gold market where there are fewer futures - although, even here there is an impact - but proportionately less great.

The demand for silver as jewellery and for industry is also considerable. There is actually more demand than the supply chain can deal with. For example, silver is used for:

  • Silver contacts in switches and circuit breakers for the power industry

  • Silver contacts in membrane switch panels for machinery, chemical industry processes, railway traffic controls and elevator buttons

  • Silver batteriesSilver circuits and components

  • Radiography - photo film

  • Cell phones

  • PC's and laptops

  • Medical applications

This has been the case for a considerable time and the outlook is unlikely to differ. Unknown to most people is the fact that there are very few silver mines in the world. The ones that mine silver do so as a side effect because those mines were built to extract other metals. Silver is a sort of bonus for them. Therefore there is no real way that huge amounts can enter the supply chain and especially not 'on call'. As a result silver is going to be more in demand as it is consumed and thus the price is likely to rise even further.

Finally, some of the top investors in the world have been "betting" on the price of silver. In fact, Warren Buffett has 2% of his portfolio wrapped up in the precious metal and many serious international investors and billionaires have followed suit. This in itself should reveal something.

So is silver a better investment than gold? Of course it is - currently - but gold is still the investor's choice long term. When it comes to silver, many serious investors believe the only way that the price can go, is up. For this reason, one should consider silver as an important part of one's medium to long term savings plan. This also includes possibly creating a Silver IRA or purchasing silver for a Precious Metal IRA for one's retirement plan.


Are You Ready to Start Investing in Precious Metals?

If you're ready to venture into the world of gold investment then your first port of call should be Regal Assets - the Official Online Gold IRA company where you will discover all of the resources you need to set up your own precious metals IRA, as well as a personal service that is second to none. To start on your path to personal prosperity right now just click below to request your FREE Complimentary Gold Investing Kit containing all of the vital knowledge and resources you will need to start investing in gold with confidence.

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Gold is the most obvious and most popular choice of the preferred precious metals and has always been regarded as the most coveted metal to own.

Why?

A gold IRA can be used as a further hedge against the nighmare scenario of losing some or all of the value of your retirement plans. It can also provide added protection against losing the value of your hard-earned cash or savings over the coming years of financial uncertainty.

This site is dedicated to providing valuable information and solutions for those who have an interest in adding gold to their portfolios or retirement funds by using a Gold IRA Investing or Gold Backed IRA Strategy.

For more information, please visit our articles pages.

There are two primary types of Gold IRA: Gold Roth IRA and Traditional IRA.

The main difference between the two is that money added to a Gold Roth IRA is taxed at the time it is added to the account and distributed tax-free when withdrawn. Whereas money added to a Traditional Gold IRA is tax-free when added and taxable when the investor withdraws the money from their account.

Gold IRAs are bound by the same rules as other IRAs; they simply use precious metals as the investment asset in the account. Other types of Precious Metal IRA include Platinum, Palladium and Silver IRAs.

Gold investing has become more popular in recent years as a result of the global economic downturn, inflation, and the fact that it is now easier than ever to set up your own precious metals ira.

Gold IRA Fund provides you with valuable info and resources covering all aspects of gold ira investment - including gold ira rollovers and the benefits of investing in precious metals. Plus, we provide you with the ability to start investing in gold safely and confidently by introducing you to the most trusted and highly respected gold investment company operating online today.