What is more profitable now: to invest in gold or silver? – A question asked by many people now who have decided not to just make money, but also to invest.

Let’s consider these two metals at a time and point out the main advantages and disadvantages.

Start with gold. Everybody loves gold and knows that it is always appreciated and will likely always be appreciated. Gold is steadily increasing in value for hundreds of years and does not think to stop its growth.

Gold is valued in all countries and is an international currency. Disadvantages of this metal are almost absent, except for the fact that investing in the short term, you can lose your money.

Now let’s talk about the silver. Since there is a record growth of silver (last year silver was worth in 2.5 times smaller than now), many investors are beginning to pay more and more attention to this precious metal.

Compared to gold, the silver has one valuable quality: it kills bacteria of various types and is a powerful antiseptic, making the water healing.

Six months ago I got the book Conspiracy of the Rich, written by Robert Kiyosaki. In this book I read about that in the near future silver will rise in price in several times and then I made a contribution by buying a few pounds of silver as a metal account.

Robert Kiyosaki, as always, was right, because it has a strong expertise in investment and finance. Given the fact that the silver on the planet is very limited and ends, you can safely invest in this metal even at its peak value.

And one more tip from Robert Kiyosaki and his adviser Michael Maloney: the real value of silver relative to gold is 12 to 1. I think it is not difficult to calculate that despite this record growth, the silver is still undervalued in some times and in all likelihood will continue to grow.

Today lots of people think of how to buy silver cheap. And they need to be aware of that besides traditional ways they can purchase silver online. Moreover, one is even able to find silver below spot.

Sorting out the issue of investing in gold (as the most popular precious metal), inevitably begin to be interested in the similar tools of investing money.

The first thing that comes to mind – is silver. It should be noted that the quotes of silver are moving often quite similar to the dynamics of the gold (most clearly seen in the crisis years, when the tendency of investors to protect their capital rises and therefore demand for precious metals increases).

Nevertheless, the relative price of gold and silver (i.e., the figure for how many ounces of silver you can buy an ounce of gold) is constantly changing (that is, in some periods the silver increases faster than gold, in others – on the contrary).

Now the silver relative to gold is rather cheap. A well-known Kiyosaki scares everybody by the depletion of reserves of silver in the world and the fantastic growth in its value. Perhaps, these fears are premature, but it is definitely worth attention.

Now many experts are inclined to believe that investments in silver in the long run are quite good. First of all, we must note that silver – in any case, is a reliable investment. Silver as a commodity is almost more valuable than gold, it is not only used in the jewelry industry, but also necessary in the art, for example, in instrumentation.

How can I invest in silver?

First of all, this is investment coins. Silver also is available in the form of bullions.

In addition, silver and gold can be “bought” in the form of metal bank accounts.

What are the differences between investing in silver and investing in gold in practice?

In my opinion, the main differences are two:

- The system (infrastructure) of investments in silver is less developed, so that residents of small towns, perhaps, will not be able to find the services suiting them.

- Investing in silver is more convenient for small private investors.

These days lots of people think of how to buy silver cheap. And they need to know that in addition to traditional ways they can purchase silver online. Moreover, one is even able to find silver below spot.

Since the beginning of the revolutions in the Middle East and North Africa, the prices for precious metals are steadily increasing. Especially silver has risen in price: 20% from the beginning of the year.

Since late 2008, the value of silver has increased in four times already and at the beginning of April reached 37.4 dollars per ounce. Only on the basis of 2011 the prices for this precious metal rose by almost 83%. Such vigorous dynamics is associated not only with the global investor interest in precious metals, but also the fact that silver is being actively used in industry now.

But despite a record increase in the cost of the metal, the bankers are convinced that investing money in it is still profitable. Projections for this year’s price of silver remain positive. Rising prices will continue this year. According to international analysts, the price of silver may rise to 46-50 dollars per ounce on world markets. The data from the survey conducted by Bloomberg also suggest that the silver in 2011 will be a leader of the rise in prices of various raw materials.

There are three main ways of investment in silver: buying silver bullions for self-storage and buying silver with simultaneous placing on current or deposit account at the bank. However, note that the difference between bid and ask prices of small bars in the banks can reach 25-30%. And the only consignments of silver from one kilogram can be beneficial for investors in the event of a price increase to the level promised by analysts. Additional profits can be obtained by placing silver on deposit in the bank.

Silver will always be in demand since it is used in many industries and its stocks are gradually exhausted. In summary it can be argued that investing in silver is promising to keep savings in the long run.

These days lots of people think of how to buy silver cheap. And they need to know that in addition to traditional ways they can purchase silver online. Moreover, one has a possibility to find silver below spot.

How can you save your money so that when you retire, its purchasing power would be fully preserved?

The only way not to lose money – is to invest it profitably, but if you buy any shares with your money, or worse – will speculate on its sale in the hope of profit, it’s likely the money will be lost sooner than if it would be eaten up by inflation. So where is the exit from this situation, how to prevent the current economic system to milk dry the last crumbs from us, often earned almost by a slave labor?

Today silver is consumed in large quantities, starting from 1942, annual demand for silver exceeds its production by an average of 25%, and the last 10 years – by 50%, and despite the fact that the current level of silver mining is in the hundreds times higher than its level of production of the past. However, what such quantity of silver might be need for?

The answer is simple – for the development of military industry (do not forget that the demand for silver has exceeded its production in the midst of World War II for the first time), and it is not surprising if one takes into account the fact that the creation of one torpedo consumes about 130 kg of silver.

How can we meet the demand exceeding production? This can be done only one way – spending existing resources. As for silver, its stocks are being decreased continuously for 65 years, and taking into account the growing demand for this metal, they will be reduced to their complete destruction. When available silver inventories run out, then, according to economic law of supply and demand, the shortage of available stocks of silver will increase its demand, which in turn will inevitably lead to higher prices for the metal, which in this case will rise in 10, 100, and maybe in 1000 times above its current price, depending on the circumstances.

These days lots of people think of how to buy silver cheap. And they need to be aware of that in addition to traditional ways they can purchase silver online. Moreover, one has a possibility to purchase silver below spot.

Buy Silver

Since the beginning of the crisis, all investors, bankers and governments “rushed” for the gold in all its forms.

Someone took refuge from falling stock markets, some hedged against the depreciation of the dollar.

This is not surprising. At all times, the yellow metal played the last refuge of the capital.

The wave of rising prices for gold even brought new players-billionaires to the gold industry – a former oilman Roman Abramovich and steelworker Mordashov became to engage professionally in it.

Buy Silver Now

And even George Soros increased the limits of his stock to purchase of this precious metal to $ 500 million. Today many people are trying to find refuge in gold, increasing its value.

But analysts are not so optimistic in their forecasts about its exclusiveness, emphasizing that while gold is cheating them out. This cannot be said about another precious metal – silver.

Silver has always been a popular investment tool in the world markets. Apart from the inevitable speculative component, there are quite objective reasons for the increase in silver prices.

Advantages To You When You Buy Silver

This precious metal is much broader than gold: it is used in industry due to its special physical and chemical properties.

In particular, silver is used in the manufacture of electrical products, batteries, mirrors, cell phones, cars, water purifiers, photography, and is widely used in medicine.

As for gold, in addition to jewelry, it is only used in microelectronics and pharmaceuticals. And taking into account the trends in developing countries, where production, despite the crisis, is growing simultaneously with the level of welfare of the population and the demand for high-tech goods, the gap between the demand for silver and its offer in the long term promises to increase greatly that would entail an adequate rise in price of the metal.

This hypothesis is evidenced by the steady population growth in developing countries such as China and India. These days lots of people think of how to buy silver cheap.

And they need to know that in addition to traditional ways they can purchase silver online. Moreover, one has a possibility to find silver below spot.

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I got into an argument with an investor friend of mine the other day over buying gold why gold as an investment. He couldn’t see the value in it, and I was quite surprised at his attitude.

“What can you do with it?” he asked. “You can’t take it down to McDonald’s, for example, and shave off a few pieces and buy a hamburger. You can’t trade with it. You can’t do ANYTHING with it.”

His contention was that it really had no value…at least I THINK that was his argument.

Quite frankly, I’ve never heard anybody take this kind of stance before. Gold gold rates has been the basis of all trade, in all civilizations, since the dawn of time. The luster of gold, its seemingly indestructible and unchangeable nature, has grabbed the heart of Man and evoked deep feelings throughout history.

The dollar was backed in gold up until 1933 when Franklin Delano Roosevelt took America off the Gold Standard and set the stage for inflation. When the dollar was tied into a given quantity of gold, its value was pretty much “set in stone”, so to speak, but once a dollar bill could no longer be pegged to gold its value could change…

So, why own gold gold value? I mean not as a contract, a futures commodity–but the metal itself?

Of all the Transition Metals, gold is certainly the most greatly desired. Since the beginning of recorded history, gold has been in use in many different works of art, coinage, and, of course, jewelry. Occurring as grains in rocks and in alluvial deposits, gold is shiny, soft, and dense. It is known to be a ductile and malleable as the pure metal. Probably its lustrous deep yellow color, more than anything else, has captured the heart and imagination…sometimes to the destruction of many.

Of all its physical properties, its density (19.30 g.cm-3), Melting Point: 1064.18°C, 1947.52°F, 1337.33°K, Boiling Point: 2856°C, 5173°F, 3129°K., as well as its lack of chemical reactivity (it does not tarnish or oxidize), lend it the kind of stability and aura of permanence that has built civilizations. Gold is chemically unaffected by air or moisture.

The term “gold” was derived from “geolu”, an Old English Anglo-Saxon word which means “yellow”. Its symbol “Au”, on the other hand, originated from “aurum”, the Latin word for “gold”. Gold may have been “discovered” in the year 1848 in California, but History tells us that this precious metal had already been used extensively by the ancient Egyptians, Romans, Greeks, Chinese, and South Americans for millenia.

Throughout history, gold has served as a measure of value and a symbol of wealth. It is one of the coinage metals (along with silver and copper). It is used, customarily and legally, as a means of payment or a medium of exchange that crosses the boundaries of all nations (and times, for that matter). Gram and troy weight are the units of measurement used for gold. To indicate the amount of gold present in, say, a piece of jewelry, the term “carat” is used. A necklace, for instance, that is 24 carats means that it is made of pure gold.

While the price of gold is determined through trading in the derivatives and gold markets, its daily benchmark price is provided in a procedure called the London Gold Fix in which its price is determined each business day on the London market. The fixing is done twice – once in the morning and another in the afternoon. The latter actually was introduced about 49 years after the procedure itself came into being, as a means of providing a price when US markets are open. This gold-price fixing procedure is done by the five members of the London Gold Market Fixing Ltd., namely The Bank of Nova Scotia, Barclays Capital, Deutsche Bank AG London, HSBC, and Societe Generale Corporate & Investment Banking.

Ok, there you have it. But the question remains: Why own gold — the metal itself, I mean? Well, here’s the argument I used with my friend:

Let’s say you are a Southern plantation owner in the pre-Civil War South. You own an enormous mansion, vast land holdings, livestock, cotton fields, and, of course slaves. But, let’s say you also own a bag of gold coins, which you buried in a secret hideaway, say near an unusual looking rock beside a river that flows through your property. Then the Civil War destroys everything. Your Confederate money is no good, your mansion is destroyed, carpetbaggers have taken the rest. What do you have left?

Answer: that bag of gold which…

Which you dig up and trade for Union dollars and go “back into business” again.

That’s the value of gold. Every economy, every nation throughout history has recognized its value. Currencies become worthless. Governments fall, and are replaced. But all recognize the value of gold. Gold is what you want to own in times of instability.

“Well,” my buddy said when he saw the logic of that argument, “the problem with people who buy and bury gold is that other people follow them, kill them and steal it.” He said this with a humorous glint in his eye, not wishing to lose the argument. But he did have a point.

Such is our fascination with gold, that draws out the worst…and best, from the heart of Man.

Income securities need to be assigned a value that recognizes the safety of their income production and market value changes should only to be viewed as opportunities for increasing yield or taking rare, but wonderful, profits.

It is even more unfortunate that it is looked at askance by client attorneys and brokerage firm compliance officers… masters of hindsight that they are.

Once a trader/speculator is weaned off the gambling mentality that brought him to the shock market in the first place, he can apply his trading skills to investing and to portfolio management. The transition from trader/speculator to trader/investor requires some education… education that generally cannot be obtained from product salespersons.

Step one is to gain an appreciation of the power of Asset Allocation. Asset Allocation is the process of dividing the portfolio into two conceptual securities buckets. The primary purpose of the equity bucket is to produce growth in the form of realized capital gains. The other bucket contains securities whose primary purpose is to produce some form of regular income… dividends, interest, rents, royalties, etc.

Market values (polish: GPW) are used in the selection process that identifies potential trading candidates and as the trigger mechanism for profit taking decisions.

The proceeds find their way back into the “smart cash” pot for asset allocation according to formula. There will be times when smart cash will grow quickly while the list of new trading candidates shrinks, but when trading candidates are all over the place, smart cash can only be replenished with income produced by both securities buckets. Thus, insistence upon some form of income from all securities owned makes enormous sense.

What about trading the income bucket securities? Enter the managed closed-end income fund (WIBOR), as tradable as any common stock, and in a surprising variety of income producing specialties ranging from preferred stocks to royalty trusts, treasuries to municipals, and REITs to mortgages. No more worries about liquidity and hidden markups. No more cash flow positioning or laddering of maturities. And best of all, no more calls of your highest yielding paper when interest rates fall. Instead, you are taking capital gains, compounding your yield, and paying your dues to the equity bucket with every transaction. And when interest rates move back up… you’ll have the luxury of reducing your cost basis by adding additional shares. Of course its magic… that’s what we do here on Wall Street!

Jim Rogers, World Famous Investor and former partner of George Soros, who single-handedly kept Great Britain from joining the European Union and at the same time became billionaires, has said that the “U.K. is Finished“. He made this statement as the Pound hit a record low versus the yen and the weakest level since 2002 against the US Dollar. When a whale makes a statement like that, it’s truly Forex Breaking News.

His reasoning is that the government will have to rescue a great number more banks that previously thought and the economy keeps slipping farther than it has since the end of World War II. He says to sell the currency immediately. “I would urge you to sell any sterling you might have,” said Rogers. “It’s finished. I hate to say it, but I would not put any money in the U.K.” Jim Rogers correctly predicted the start of the commodities rally in 1999. He also made a killing on the Crash of 1987.

Commonwealth Bank of Australia said there was a high risk of a cut to the country’s credit rating outlook and lowered its pound forecast. Prime Minister Gordon Brown authorized a 100 billion pound ($142 billion) bailout for banks.

The pound slid to 127.44 yen, the weakest since at least 1971, as of 2:23 p.m. in Tokyo from 130.71 yen yesterday in London, according to data compiled by Bloomberg. It declined 2 percent to $1.4133, the lowest since March 2002, and last traded at $1.4185. The currency slid 1.1 percent to 91.58 pence per euro.

Jim Rogers said the currency will fall below its record low of $1.0520 reached in February 1985. He believes that the U.K. debt is now greater than previously forecast due to the additional bailouts announced over the weekend and today.

Jim Rogers also said investors should be “worried” about the U.S. dollar, and recommended selling government bonds and buying raw materials, China stocks and the yen.

“If I were you, I would be worried about the U.S. dollar,” said Rogers, 66, in a speech at the Asia Financial Forum in Hong Kong today. “The Americans are printing U.S. dollars. The Americans are going to do whatever they can to revive their economy, even if it means destroying the U.S. dollar.”

Now is the time to make a killing shorting the UK Pound. With everyday news coming in on just how really bad the banks are in the United States and in Europe, it seems that the US Dollar and the U.K. Pound are going to be taking the brunt of the blow.

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The US Dollar hit its 13 year low versus the Yen Friday and rebounded shortly after that. However, if you look at the currency markets overall a trend is starting to show, that the US Dollar is weakening. This is a point that is being argued about alot but a select few economists and professors of economics seem to agree that the US Dollar is going to tank.

The reason for this isn’t really that complicated. We are the largest debtor nation in the world. In 28 shorts years we’ve gone from being the largest exporter and lender to the world to the opposite. Reagonomics and the Laffer Curve be damned. The two combined have wiped out almost our entire manufacturing base and we have to borrow money every single day just to function as a government. With the Investment Bank collapse in September and October and now the stock market collapse the rest of the world is figuring out that we won’t be able to pay back our loans. This alone will kill the value of the US Dollar.

Check out this video from Novermer on Fast Money on CNBC. Peter Schiff has hit this on the head going back over 2 years and unfortunately he has been right. But what he is predicting now is dire.

Our Government and the Fed specifically has been playing witchcraft games with our economy for so long that it looks like no matter what, the market is going to correct itself and we all are going to feel the pain of this correction. Buy and Hold Investing is dead because the market is so volatile and there is no rhyme or reason for these 20 percent moves on some stocks that you must find something to hold onto in the interim.

Gold is that something. Again, going back to Peter Schiff he makes a great case for buying the precious metals and Gold in particular. It is really best to buy actual Gold buy investing in Gold futures will be better than nothing. When the US Dollar collapses Gold will be standing extremely tall. Think about it, if you use the US Dollar to buy Gold and than the US Dollar is worth less, Gold goes up by default.

Check out this video of Peter Schiff talking about Gold.

He has already predicted that Gold would hit $1000/ounce this year and it did. He is now predicting it hitting $2000/ounce next year and I wouldn’t bet against him anymore. He seems to have hit this right on the head and he started talking about it back in 2006.

After watching that it is scary how accurate Peter Schiff has been, even in the face of laughing pundits and “so called experts” on these practically worthless Financial Talk Shows. It seems like the talk shows are more about entertainment than about facts. Do they look at us like children that can’t take the truth or are they themselves unable to face the hard facts of life.

Either way I think it is time that you looked into the falling US Dollar or buying Gold, both if you can afford it. As far as Forex Trading is concerned there are hundreds of ways to invest in this market and it is easier and faster than investing in Gold. But I would be looking to start doing it soon since the writing appears to be on the wall for a US Dollar fall.

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