Since the dawn of man, human beings have been attracted to the illustrious beauty of gold and silver. These precious metals for the first true forms of money and were commonly used to trade in goods between different civilizations without having to worry about exchange rates. Even after the development of printed money, for centuries that money was based on the gold maintained in the national vaults.
It was not until the recent years, printed money was turned into a debt-based system rather than one based on gold. When this occurred, it resulted in a very interesting aspect that nobody had experienced previously. That is, as the value of the printed money decreases, the value of precious metals increases. This was very different than before as the value of money and gold were equal and therefore moved in the same direction and at the same rate.
In recent years, more and more people have chosen to start investing in gold and silver all around the world. There is actually a lot of money to be made when you invest wisely. However, if you make mistakes in purchasing your gold or selling it, there is an opportunity for you to lose some if not all of your investment.
Investing In Gold And Silver Is A Very Sensible Choice
One thing most people do not realize is that currently, the value of gold is not at its highest. Technically speaking it was the 1980’s that gold was at its highest value. It was then that the value of gold was substantially higher than it is today. Furthermore, it was during this time period that many investors began to realize that gold moves in a three stage market.
The first stage is considered to be the lowest value or the dip. This is a corrective stage in which the value of gold returns to a normal level and is neither overvalued nor is it undervalued. The first stage is followed by a second stage in which the value of gold slowly and steadily increases exponentially. The third stage is when everybody rushes out to purchase as much gold as they can and make as much profit while possible.
Currently, it is said that we are in the second stage. What this means is that today is the best state possible for investing in gold and silver. Tomorrow, the value of gold and silver will be greater than it is today; and the day after that it will be worth even more. At some point within the next year, there will be an increased trend in precious metal investments which will send the value of gold and silver to all new highs.
A smart investor is said to purchase low and sell high. What this means, is that when you choose to invest in gold and silver today and then sell once this third stage is reached, you will be able to make the most amount of profit possible. Many speculators insist that you should be able to clear anywhere from 5 to 15 percent depending on what price you purchase the precious metal at, what type of precious metal you are purchasing and what price you are selling it at.
In reality, the only way to get a higher return on investment when choosing to invest in gold and silver is to invest in scrap. Generally speaking, you purchase this scrap gold at pawn shops as well as local yard and garage sales at below prevailing rates. From there, you collect enough and send it into a recycler in order to get a return on your investment.
Many have it obvious take it a step further by choosing to refine the gold on their own prior to sending it into the recycler. This ensures that they are able to make as much money as possible because believe it or not, many items that are composed of gold also contain more valuable precious metals such as platinum and palladium.
Just make sure that you take your time when choosing to invest in gold and silver because there are still inherent risks associated with the investment. Many people have lost some if not all of their initial investment by making bad decisions when choosing to purchase or invest in precious metals.