Forget the gold. Silver shines more strongly

The price of gold passed the key level of 1000 dollars per ounce at the beginning of this week and has risen by over 5% last month and nearly 15 percent since the beginning of this year. But silver is present even better than gold this year, says CNN.
This can be regarded as a good sign for recovery of the global economy. Gold is often used as a tool to protect against inflation when financial uncertainty, while the appreciation of silver may be due to increased demand for industrial uses.
Silver rose to 16.72 dollars per ounce on Tuesday as its price has risen by 40 percent since the beginning of this year. Silver is not enjoyed so much attention as gold, but its appreciation is very clear signal that the world economy may indeed be stabilized.
Depreciation of the dollar this week is probably the biggest reason for the appreciation of gold and silver. Investors are worried that big government spending and printing money by the Federal Reserve will depreciated dollar and lead to severe inflation.
Why buy gold, silver and other precious metals and oil – these are assets that retain their value over time, as opposed to paper money. These metals and raw materials are traded in dollars and is normally their price to rise when the dollar depreciates.
In U.S. currency this week reported its lowest level against the euro and Australian dollar since the beginning of the year. But while gold has a relatively ogranichena use in the production process, silver, like copper, is a component of many industrial goods.
It is used for the manufacture of many products, batteries and semiconductors to solar panels and systems for water purification. This means that there is something more than inflation, forcing the price of the white metal to rise so quickly and this is increased demand for industrial needs.
Moreover, the purchase of silver is more affordable than that of gold. There are different ways to invest in silver than buying the physical metal. For this purpose, can buy shares of exchange-traded funds that track the cost of investing in silver mining companies.
Analysts say the long term there must be a gap between the yield of gold and other metals and raw materials. Gold will be more sensitive to investor perceptions and appetite for risk, while the silver will be a landmark for the state of the global economy.

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Finance

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