Swapping Gold for Silver Has Historical Merit

Precious metals investors are very much in tune to the silver to gold ratio. The ratio, which commonly trends between 20:1 to as high as 70:1, should be used as a guide to determine which precious metals will rally and when. Today, silver is at the top of the silver to gold ratio at just over 62:1, so according to history, those who swap their gold today will see higher appreciation in silver in the months and years that follow.

Swapping for Greater Appreciation

We’ll have to travel in time back to 2003 to find a time when the gold to silver ratio was even remotely close to where it is today. In 2003, the ratio peaked for the last time at nearly 80:1. Since that time, gold has risen from $320 per ounce to $1240 per ounce. Silver, on the other hand, has risen from $4.80 to more than $20 per ounce. Silver racked up a 416% gain in seven years while gold lagged, but still beat any other market with a 387% gain.

Going back even further to 1992, silver was selling for an average price of $4 per ounce while gold traded at right around $350. That puts the ratio at roughly an average of 85:1 throughout the year. From 1992 to 1998, when silver reached its recent average ratio to gold, silver soared as high as $7.80 per ounce. Gold, however, stayed moderately flat, advancing no more than 20% and ending the year of 1998 exactly where it began six years prior.

Hold on for 40-50:1

History is ripe with examples where silver, once it tops out on the silver to gold ratio at 70:1, goes on to outperform gold in the long run. Investors buying silver here at roughly 62:1 still have plenty of appreciation ahead of them, especially if gold continues to trudge a few dollars higher each month to test new highs. However, even without advancement in the price of gold, silver investors should prepare for prices as high as $28-34 per ounce before even beginning to ponder a switch back to gold from silver.

Of course, much of this methodology relies on the continuous advancement of silver prices. Luckily for silver investors, the big institutions are cutting back on their shorts (as a requirement of new laws and regulations concerning proprietary trading desks) and will not have the same stranglehold on the market that has persisted since the day gold and silver holdings were legalized.

Now more than ever, appreciation in silver bullion prices is only a matter of time, nearly guaranteed as a result of a changing market structure and a sky-high silver to gold ratio. When investment bank activity shutters for good in October, expect a surge in prices never before seen. Silver’s previous seasonal autumn runs will look like blips on the radar, and many investors are positioned well to become filthy rich on the climb. If you haven’t already, consider swapping a portion of your gold bullion holdings for physical silver, as history is on your side.

Market Specialists? More Like Market Amateurs

When gold broke through the $1,000 barrier in March of 2008, many so-called market specialists predicted that the “gold bubble” would immediately burst, resulting in a sharp plunge in the value of gold. The same thing happened when gold broke $1,100, $1,200, and, more recently $1,300 in September of 2010.

Regrettably, these market “specialists” are no different than the same experts advising people with “hot stock picks” and various other high risk investments. All the while, as their investment advice tanks, gold and the precious metals market as a whole continues to climb in a steady, positive direction, indicating sustainable appreciation. Moreover, with continued concern over currencies, credit, and other negative economic indicators, the precious metals market has reclaimed its position as an investment safe haven.

Gold continues to climb. As it begins its journey towards flirting with $1,400, there will be rumblings of a massive dip in value. Admittedly, the market may correct itself—but we speak of pennies on the dollar compared to the growth it will continue to experience. This correction will occur at every broken threshold, as long-term investors aim to take profit spurred on by fear and uncertain territory. However, a correction is very different from a bursting bubble. The gold market will continue to move forward positively as long as federal, national, and global debt accumulates, as long as currencies remain unsubstantiated, and as long as unemployment remains atrocious.

Every “market specialist” has offered an opinion on what immediate actions need to be taken to turn the country a complete one hundred and eighty degrees. Unfortunately, these recommendations are coming from people who were created within the collapsed system of credit, debt, and production (or lack thereof). There is no quick fix. To truly address all of these negative economic conditions will take a very, very long time. It took decades to cause these crises—to think that one can reverse decades worth of poor decisions overnight is to live in a fantasy world.

The time is now to buy gold. As the world becomes more educated on the crisis at hand and as gold continues its massive climb, the window of opportunity will close. Protect your future today.

Call United Gold Group today at 1-800-488-3903, and ask to speak to one of our Senior Account Executives, who will be more than willing to help you with your precious metals investment needs.

Call Today: 1-800-488-3903

Rare Gold Coins – An Investment in Gold is an Investment in Your Future

Rare gold coins make an excellent investment strategy or simply to top off an already impressive investment portfolio. Gold is always a great addition if you're looking for physical investments. It retains its value reasonably well. It is easy to liquidate when the need arises. And, if worse comes to worse, is a form of hard currency that can carry you through almost any disaster situation. Unlike general gold coins, though, rare cold tends to hold more significant value with avid collectors rather than hard core survivalists. Either way, gold, in any physical form is an excellent investment.

Gold coin investments are a wise investment to be sure. Here are just a few of the benefits of investing in gold coins. First, gold is fairly easy to liquidate on short notice. We all have needs that arise out of the blue and unexpected expenses that crop up. Stocks, bonds, and real estate can take some time to liquidate and it is very easy to lose a lot of money in the process. With gold, you can sell off as little or as much as is needed to cover those unexpected expenses without having any impact at all on the other gold you have on hand. With stocks, futures, and real estate, you generally have to be able to sell a specific or minimum amount and may even need to sell at a loss in order to cover expenses quickly.

The really good news about gold investments is that gold dealers are rather easy to find. It isn't a heavily regulated item. If hard pressed, you can even sell gold by weight at almost any pawn broker (though this is not recommended because you'd almost certainly not get a good price for your troubles).

Setting aside gold for retirement is something a lot of people are considering in light of recent economic uncertainties in the market. Many people have lost sizable chunks of their retirements during the market upheaval of the past few years and investors are looking for safer ways to invest in their pending retirements than traditional IRAs and 401(k)s. One option that is gaining traction and interest is the Gold IRA. What this does is place physical gold in the IRA to protect the investment and gain value towards retirement. It is also possible to invest in a Gold 401(k). Whether you choose one or both for your retirement investment you stand to have a solid gold retirement.

Gold Coins – Why is Everyone Buying Gold These Days?

Gold coins are more popular today than they have been in quite a while. Uncertain economic times have people turning more and more to hard currency in the form of gold and other precious metals. The more upheaval we see, the more the value of gold shoots through the roof. In fact, gold is enjoying a nearly unprecedented ride to the top in recent months and only looks to be going up and up in value and esteem as the world economy teeters on the brink of collapse and nations struggle to quell fears and regulate the value of their currencies.

In this tight gold market it's nearly impossible to find wholesale gold coins but there are still a few resources left where wholesale gold can be traded. There are a few things you should look for in order to avoid being taken advantage of as you look for quality dealers of wholesale gold for your investment needs. Don't deal with dealers who have no reputation. This is a business where reputation matters. It may make it a little more expensive or the waiting lists may be longer in the end but that beats losing your investment entirely by getting "fool's gold" from the distributor instead of the real gold you thought you were purchasing.

Are you looking to buy gold coins? It might be tempting to purchase these golden coins from dealers overseas who offer lower prices and promise better products. The problem is they aren't always ruled by the same regulations for honesty, disclosure, and delivery as dealing with U.S. based businesses would provide. More importantly, should something go wrong, they aren't bound by the same laws and are not subject to our legal authority. In other words, if something goes wrong, you may have no legal protection for your investment or to turn to in these cases.

Are American Eagle gold coins a solid investment? They absolutely are! The beauty of collecting physical gold in the form of coins like these is that you can invest in as many as you would like and liquidate them as needed in the event that you need to get cash quickly. You won't even have to pay costly brokerage fees to liquidate quickly. The coins are minted at different values and are easily portable if you need to move them for any reason. Gold makes an excellent investment and is one of the few physical products that is easy and fun to invest in.