Unveiling Gold Bullion: Is It The Ultimate Investment?
7 Reasons Why Gold is A Good Investment What is Gold Bullion? Gold bullion is the term for any investment-grade gold product. There’s a common misperception that the term bullion is only used for gold bars, like those you see in movies such as James Bond or The Italian Job. This is incorrect. The most common forms of gold bullion are gold bars and gold coins. Many investors choose to hold both as part of their gold bullion holdings. But why are they choosing to invest in gold at all? Here are my seven top reasons for why it’s worth investing in gold: 1. Hedge Against Inflation Gold has historically shown itself to be a hedge against major factors that affect our investment portfolios, including inflation, deflation, macroeconomic, geopolitical, systemic, and monetary risks. It’s a safe haven that operates outside of the monetary system, meaning central banks do not control its supply, demand, or price. Because of its finite supply and indestructible quality, gold has shown itself to hold its value over long periods of time, in contrast to many paper and physical assets. 2. Safe Haven Currency Gold is often described as a borderless currency. This means that it operates independently of any national monetary system. Its finite supply and durability have allowed it to maintain value over long periods, making it both a safe haven investment and a safe haven currency. Unlike other currencies or assets tied to third parties, physical gold is entirely yours to do with as you please. 3. Portfolio Diversifier Gold and silver have a historical negative or weak correlation to price movements in the financial markets, especially stock markets such as the New York Stock Exchange. This makes gold an excellent tool for a balanced portfolio, allowing investors to benefit from both short-term and long-term market events. 4. High Liquidity The gold market is one of the most liquid markets, which makes it one of the easiest to buy and sell. Its liquidity and global reach mean there is no need for the buyer or seller to predetermine a price before entering the market, as the market sets the price according to demand and supply at that moment. Unlike other physical assets, such as real estate, which may take months to sell, gold can be traded quickly. 5. Storage Options The beauty of buying physical gold is the flexibility in storage options. Investors may choose to store their gold at home, but there are also well-established, secure, and regulated intermediaries for long-term storage and insurance of bullion holdings. For example, through your GoldCore account, you can have secure storage and easy access to the gold market if you decide to sell. 6. Protection Against Uncertainty Gold is known to be a safe haven in times of high economic and political uncertainty. It acts as a hedge against geopolitical and economic upheavals. In recent years, we’ve faced numerous global challenges, including the pandemic, rising cost of living, and geopolitical tensions. It is crucial to protect our investment portfolios against such events, and gold helps you do this. 7. Intrinsic Value When you buy physical gold bullion, you own a tangible asset with intrinsic value. Unlike digital investments or paper assets, physical gold is not someone else’s liability. This means you hold an asset that will retain value regardless of market fluctuations or the actions of third parties. Should You Buy Bars or Coins? Now that you’re sold on the idea of investing in gold, let’s discuss whether you should invest in gold bars or coins. Gold Coins There is no time like the present to invest in gold coins. They have been a highly lucrative investment option for thousands of years. Gold coins offer the ability to diversify your portfolio and safeguard your wealth. Unlike gold bars, each coin is instantly recognisable worldwide and difficult for counterfeiters to replicate due to unique markers and micro-engraving within their design. Coins offer more flexibility as they are smaller units, allowing easier cashing in on your investment. For investors with smaller capital outlays, coins are a great starting point. Additionally, some gold coins may have numismatic value due to their age or collectible status. Gold Bars Gold bars are often considered an efficient way to invest in gold, especially for those with larger capital. While small bars may have high premiums, larger bars can be purchased at lower premiums through dealers like GoldCore. Secure storage options for gold bars include specialised, insured vaults in secure jurisdictions. These vaults maintain the chain of integrity, making the process of selling gold faster and easier. Gold bars remain an attractive investment due to their efficiency and lower premiums compared to smaller bars or coins. With these seven reasons, it’s clear that gold is a good investment. Whether you opt for gold bars or coins, investing in gold bullion offers a tangible, secure, and valuable addition to your portfolio. If you’re ready to dive into the world of gold investing, start exploring your options today and secure your financial future with this timeless asset. Watch more here: https://www.youtube.com/watch?v=1D4C5ZszlK4 Article and video courtesy of Dave Russell from Gold Core.
Hedge fund boss loses legal fight over 2364 silver bars found in WWII shipwreck
An undersea exploration company backed by a top hedge fund boss in the United Kingdom lost a major legal fight over the salvage of $40 million worth of silver bars from the wreck of a ship lost to a Japanese submarine in World War II. Bloomberg reported that the UK’s Supreme Court ruled that the South African government could declare state immunity in a suit by hedge fund chief Paul Marshall’s Argentum Exploration Ltd. Argentum Exploration argued in court that it was owed a ‘substantial salvage fee’ and wanted a court to ‘fix an award.’ However, the judges were informed that the two sides had agreed to a settlement. Here’s more from Bloomberg: The South African government had argued that it not only still owns the silver, but insisted that it shouldn’t have to submit to the lawsuit at all. The Supreme Court judges agreed, saying that the silver was a non-commercial cargo and the government was entitled to immunity. The ruling overturned two prior court decisions, with a judge previously saying that the government had probably “forgotten” about the bullion. UK Companies House filings record that Marshall controls Argentum. In 1942, the SS Tilawa was sailing from Mumbai on its way to Durban, South Africa, when two torpedoes from an Imperial Japanese Navy submarine sank the passenger-cargo ship. On board were 2,364 bars of silver destined for the South African Mint. For seven decades, the ship resided more than two and a half kilometers below the surface of the Indian Ocean until Marshall’s exploration company discovered it. Article courtesy of Tyler Durden, ZeroHedge
Unlock how to invest in silver in 2024: a beginner’s guide for powerful investing
In this article, we’ll talk about how you can invest in silver in 2024. From understanding basics to investing in silver to advance strategies, we’ll cover everything an investor must know before investing. In 2024, it continues to attract interest from investors assessing its potential. What is silver? Silver, a precious metal, symbolised by Ag and atomic number 47, has many practical uses. Its high thermal and electrical conductivity make it essential in industries like electronics and photography. It also has antibacterial qualities, useful in medical devices and wound dressings. In addition to its practical uses, silver is popular for its aesthetic appeal in jewellery and decorative items. Its naturally shiny appearance and versatile colour complement gemstones and can be combined with different metals for beautiful designs. and for more information about silver you can check out my old article on silver. Link for that article “What is silver? and its 100 pronunciations of silver in different languages and its Unbelievable properties.“ Why invest in Silver? In a dynamic global financial market, investors seek ways to protect their wealth and broaden their investment portfolios. Investing in silver has many advantages. Some are, Ways to Invest in Silver 1. Physical Silver: Investing in silver in the physical form is best done through fine silver bars, coins, or rounds. Popular options include American Silver Eagles, Canadian Maple Leaf, and silver bars in different sizes. 2. Silver Exchange-Traded Funds (ETFs): Silver ETFs like SLV and SIVR allow investors to invest in the price of silver without holding physical metal. 3. Silver Futures and Options: Experienced investors can trade silver futures on exchanges like the Chicago Mercantile Exchange (CME), New York Stock Exchange or use options contracts to speculate on silver prices. 4. Silver Mining Stocks: Investing in silver mining companies offers a way to benefit from silver price movement. Some world’s top silver mining companies are First Majestic Silver, Pan American Silver, Rio Tinto, and more. Factors to Consider When Investing in Silver Risks of Investing in Silver Conclusion Silver investors should stay informed about market conditions, supply and demand dynamics, and risks like price volatility and counterparty risks. Keeping track of regulations and taxation policies is crucial as they can impact investment profitability. By closely monitoring these factors, investors can make well-informed decisions to maximise returns. Understanding economic indicators, geopolitical events, and market trends is essential for effective silver investing. Silver can provide diversification, inflation protection, and exposure to industrial demand, making it a potentially profitable addition to your portfolio. Knowing the investment options, factors affecting silver prices, and associated risks will help you make informed decisions to optimise returns. FAQ’s Q. Is silver a good investment?A. Silver is a good investment because of its history as a hedge against inflation and its many industrial uses, but investors should be cautious of its price fluctuations and risks. Q. Are silver stocks a good investment?A. Investing in silver stocks can provide exposure to the silver market with the potential for high returns, but it also comes with market volatility and risks related to the mining industry. Q. Should a person invest in silver?A. Deciding to invest in silver relies on personal financial goals, risk tolerance, and portfolio diversification. Silver can provide inflation protection and exposure to industrial demand. Investors should weigh market conditions, risks, and investment objectives thoroughly before investing. Article courtesy of Magstorz
A powerful asset for the future
Thanks to its growing demand as an industrial metal, silver’s future looks shiny. All the reasons to invest in gold also apply to silver, and often silver’s value is magnified compared to gold. The difference between silver and other precious metals is its growing demand as an industrial metal. Each year, more and more uses are discovered for silver’s unique chemical properties, ranging from biotech to electronics, and there is growing concern that in less than 15 years, there will be no silver left. There’s simply not enough silver to meet this growing demand, which makes physical silver an attractive investment. Growing demand as an industrial metal After silver is used within industries, like medicine or photography, it becomes useless. Where small quantities of silver remain present in discarded electronic items, it is difficult (and prohibitively costly) to extract. Consequentially, the market is starting to realise that if silver supply falls to zero, this metal will become the most precious of them all. Affordable and undervalued investment For many centuries from Roman times, the ratio of gold to silver was historically around 12/1, meaning 12 ounces of silver would buy 1 ounce of gold. But this ratio began to fluctuate in the 1900s. Over the last 100 years, the ratio has been lower than 20 and higher than 100, shifting up and down on the back of rises and falls in the price of both commodities. When the gold/silver ratio is high it is often taken as a good time to buy silver, indicating that the silver metal is undervalued in relation to its pricier relative. The ratio in January 2024 was 87:1 implying that the silver price is massively undervalued. Many analysts and experts believe that silver should be trading at five times the amount it’s trading at the moment. Demand is underpinned by industrial uses, investment buying, jewellery, tableware and photography. While the muted economic growth expected in 2024 may not propel industrial demand, silver’s value as a store of wealth, bolstered by its use in many and varied applications, provides long-term investment assurance. The benefits of silver Article courtesy of The Pure Gold company
Gold vs Silver: 4 key differences you should know
To varying degrees, both gold and silver may provide a hedge in a potential economic or market downturn, as well as during sustained periods of rising inflation. Understanding the difference between how the two metals are used, their economic sensitivities and technical characteristics can help you determine which metal may benefit your portfolio. Here are four factors to consider when deciding to invest in gold or silver: 1. Silver May Be More Tied to the Global EconomyHalf of all silver is used in heavy industry and high technology, including smartphones, tablets, automobile electrical systems, solar-panel cells and many other products and applications, according to the World Silver Survey. As a result, silver is more sensitive to economic changes than gold, which has limited uses beyond jewelry and investment purposes. When economies take off, demand tends to grow for silver. 2. Silver Is More Volatile than GoldThe volatility in silver prices can be two to three times greater than that of gold on a given day. While traders may benefit, such volatility can be challenging when managing portfolio risk. 3. Gold Has Been a More Powerful Diversifier than Silver:Silver can be considered a good portfolio diversifier with moderately weak positive correlation to stocks, bonds and commodities. However, gold is considered a more powerful diversifier. It has been consistently uncorrelated to stocks and has had very low correlations with other major asset classes—and with good reason: Unlike silver and industrial base metals, gold is less affected by economic declines because its industrial uses are fairly limited. 4. Silver Is Currently Cheaper than GoldPer ounce, silver tends to be cheaper than gold, making it more accessible to small retail investors who wish to own the precious metals as physical assets. Article courtesy of Morgan Stanley
Silver Demand in Three Key Sectors Expected to Nearly Double in the Next Decade
Silver demand for industrial applications, jewelry production and silverware fabrication is expected to nearly double over the next 10 years. According to a report by Oxford Economics commissioned by the Silver Institute, the demand in these three sectors is forecast to increase by 42% between 2023 and 2033. Industrial, jewelry and silverware production account for about three-quarters of total silver demand. According to the report, industrial demand for silver will increase by 46%. This reflects a projected rapid 56% growth in the output of the electronics industry. Manufacturers of electronics and electrical applications are the major purchasers of industrial silver. In 2022, these industries consumed 371.5 million ounces of silver, 67% of the industrial offtake. According to the Silver Institute, the use of silver in solar energy and electric vehicles will help lead this category forward. According to a research paper by scientists at the University of New South Wales, solar manufacturers will likely require over 20% of the current annual silver supply by 2027, and by 2050, solar panel production will use approximately 85–98% of the current global silver reserves. The evolving demand for silver in brazing alloys will also help drive industrial demand. These processes made up 9% of global industrial demand in 2022. Demand for silver in jewelry is projected to increase by 34% over the next decade. India will continue to lead the world in silver jewelry production, but the report forecasts that it will lose some of its dominance to China. Silverware fabricators’ output is forecast to increase by 30% over the next decade. About 43% of the growth in output is expected to occur in India. Silver demand set records in every category in 2022. Meanwhile, supply was flat with mine output dropping by 0.6% to 822.4 million ounces. Record global silver demand and a lack of supply upside contributed to last year’s 237.7 million ounce market deficit. It was the second consecutive annual deficit in a row. The Silver Institute called it “possibly the most significant deficit on record.” It also noted that “the combined shortfalls of the previous two years comfortably offset the cumulative surpluses of the last 11 years.” The price of silver does not reflect the current supply and demand dynamics. In fact, silver is significantly undervalued right now. One analyst called the current price in the $22 an ounce range “inexcusably low.” It’s important to keep in mind that while silver is an industrial metal, more fundamentally, it is money. Despite being more volatile in the short term, silver tends to track with gold over time. If you are inclined to think the Federal Reserve will lose the inflation fight, you should be bullish on both gold and silver. At some point, investors will have to reckon with the shrinking supply of silver coupled with rising demand, along with the Fed’s inability to bring inflation back to its 2% target. When that happens, the price of silver will likely take off. Given the supply and demand dynamics, the skewed silver-gold ratio and the likelihood that the Fed will not beat price inflation, $22 to $23 silver looks like a great buying opportunity. Article courtesy of Schiff Gold
Silver And The Fall of Rome
While highly valuable as a component in many electronics today, silver’s biggest legacy may be its long history as money throughout human history… and no example stands out more than the Roman Denarius. The Roman Denarius, a silver coin, was introduced in 211 BC and served as the backbone of the Roman economy for several centuries. Silver was the metal of choice when it came to Roman money. T he silver Denarius was widely used across the vast Roman Empire for trade, wages, and everyday transactions. For several centuries, the Roman Republic thrived, enjoying a long period of practically no inflation because they used sound money – pure gold and silver. However, this stability was not to last… Assuming the mantle of Roman Emperor in 284, Diocletian made the decision to split the Roman Empire into four territories. As the empire expanded, facing escalating debts and military expenses, Diocletian started the debasement of the Denarius. They diluted its silver content with less valuable metals, aiming to extend the empire’s silver reserves. Initially subtle, this debasement seemed effective, but it escalated as the financial strain on the empire worsened. The Denarius, once 90-95% pure during Caesar Augustus’s time, plummeting to as low as 30% by the 3rd century AD. This drastic debasement led to rampant inflation, eroding the Denarius’s purchasing power and causing prices everywhere to soar. The Roman populace lost faith in the currency, and the once-thriving Roman economy began to falter. The debasement of the Denarius was not the sole cause of the fall of the Roman Empire, but it played a significant role in its decline. The erosion of the Denarius’ value, the once high purity coin became essentially a token, undermined the economic stability of the empire, leading to social unrest, a decline in trade, and a weakened military. The story of the Denarius serves as a stark reminder of the consequences of fiscal mismanagement and the importance of maintaining the integrity of a currency. Courtesy of GoldSilver
Why do we buy gold and silver?
Article courtesy of David MelvillReal money specialist / “Goud- en silwerspesialis”
Silver supply constraints and a looming crisis
According to the World Silver Survey 2023, the global appetite for silver surged by 18% last year, reaching a record-breaking 1.24 billion ounces and resulting in a significant supply deficit. In 2021, the silver market faced a shortfall of 51.1 million ounces. However, the situation deteriorated dramatically in 2022, with a staggering undersupply of 237.7 million ounces. The Silver Institute has labeled this as “possibly the most significant deficit on record,” and forecasts indicate that the shortages are likely to continue in the years ahead. The reasons for this tightening supply are multifaceted: With global sustainable investments reaching an astonishing $35.3 trillion, as reported by the Global Sustainable Investment Alliance, the demand for silver — integral in many green technologies — is poised to skyrocket. For many investors, alarm bells are ringing. When record high demand meets a tightening supply, at some point, something has to give. Either the supply of silver somehow increases a great deal, or the price of silver will increase. Given these market conditions, the logical outcome could be a surge in silver prices in the years ahead. Many analysts like Tavi Costa, renowned portfolio manager at Crescat Capital, agree that silver prices are going higher. He says, “Going back to 2011, you can see the monthly chart, the resistance has lessened for over a decade now. And we’re very, very close to a breakout with this chart. This could happen any month really.” Courtesy of GoldSilver
Silver Is More Than Just Money
Many people are familiar with silver’s history as an investment – but unfortunately its numerous industrial applications are often overshadowed. The truth is nearly 50% of the annual silver supply is used in industrial applications and manufacturing. And that silver is truly indispensable in modern society. Electronics: Silver’s Invisible Everyday Presence You may not see it, but silver is used in virtually every single one of your electronic devices. If you’re interacting with a gadget that has an on/off button, it’s highly likely that silver is a key component. Known for its unparalleled electrical conductivity, silver is the perfect material for a wide array of applications. It’s found in everything from printed circuit boards and switches to TV screens, telephones, microwave ovens, children’s toys, and even the keys beneath our computer fingertips. As of 2023, there are over 15 billion devices connected to the internet worldwide – and that figure is expected to double by 2030. As we further embrace the digital age, the demand for silver in these sectors is poised to rise. Renewable Energy: Silver’s Role In Powering A Sustainable Future In the pursuit of sustainability, silver has been proven to be a vital component, particularly in the photovoltaic cells that make up solar panels. So, how exactly does silver function in solar cells? Silver powder is converted into a paste, which is then applied to a silicon wafer. When sunlight strikes this silicon, electrons are set free. Silver, being the world’s most efficient conductor, swiftly channels this electricity either for immediate utilization or for storage in batteries for future use. As many nations around the world increase their clean energy investment, the demand for silver is set to rise in tandem, further solidifying its critical role in our sustainable future. Silver’s Healing Power: From Ancient Voyages to Modern Medicine Long before the scientific community understood silver’s antibacterial properties, the metal was already being used to combat harmful germs. During lengthy ocean voyages, sailors would drop silver coins into water and wine casks to keep them from spoiling. For years, physicians applied drops of silver nitrate into the eyes of newborns to stave off infections. Even in the grim conditions of World War I, silver foil dressed battlefield wounds, and silver sutures were used to stitch up severe injuries. It is only in recent years that scientists have unraveled the mechanisms behind silver’s antibacterial effects. Silver ions have the unique ability to penetrate bacterial cell walls without harming mammalian cells. This disrupts the essential chemical and structural bonds within the bacteria, effectively neutralizing them. Today, the medical community is leveraging silver’s unique properties in innovative ways. Medical devices like breathing tubes and catheters are now coated with silver to ward off infections. The metal is also applied to artificial bones and scaffolding materials to aid in the healing process. Silver-infused bandages and ointments are increasingly common, as they inhibit bacterial growth, allowing wounds to heal more quickly. Remarkably, silver has proven effective against bacteria that have developed resistance due to the overuse of chemical antibiotics. The Electric Vehicle Boom Is Driving Up Silver Demand From 2021 to 2022, the number of electric cars sold almost doubled, breaking records, and increasing from 3.75 million to 6.75 million globally. Electric cars depend heavily on silver. Much like many other devices these days, the electrical and thermal conductivity of silver makes it an ideal material as part of an automobile battery. It is also ideal for use in EVs because it’s non-toxic and hypoallergenic. As it stands, the automotive industry consumes a staggering 55 million ounces of silver each year. By 2025, this figure is projected to leap to 90 million ounces. So, where is all this silver coming from? If these electric vehicle companies all want to continue their rapid growth, it will require a huge increase in silver production. However, there’s a snag: the demand for silver is currently outpacing its supply, creating a looming bottleneck for the industry. Courtesy of GoldSilver
