What you should know to invest in gold and silver

NEW YORK For someone like me, who can’t afford to buy an ounce of gold, would it be equally good to have several ounces of silver compared to half an ounce of gold?

Big question. Gold, which is priced at more than $ 1,300 an ounce, is an investment much more expensive than silver gold ira companies, which currently costs about $ 15 an ounce. In other words, you could buy more than 40 ounces of silver for the same price as half an ounce of gold.

Investors treat gold more like a currency than silver, a metal that has many more industrial uses than gold. So, if you want to buy silver, don’t necessarily expect it to behave in tandem with gold.

Silver prices have in fact dropped almost 25% in the last five years, while gold prices have remained relatively stable. Silver has been more affected because investors are concerned about the slowdown in global economic growth. But both metals have lagged in performance against the broader stock market.

Even so, investment experts say that owning gold, silver and other precious metals such as platinum and palladium could make sense as a small part of a broader investment portfolio.

Many people simply possess them to protect themselves against large setbacks in actions. They are also seen as a good alternative to government-backed currencies, which tend to fluctuate more with central bank decisions about interest rates.

Investors see bitcoin and other cryptocurrencies as assets that could behave similarly to gold and silver.

Now that apparently the Federal Reserve (Fed) of the United States has concluded its interest rate hikes for the foreseeable future, that should be a good omen for gold and silver, when rates are low.

“Metals are destined to be the main beneficiaries of the Federal Reserve, by simply reaching the level of futures markets at flexibilization prices (quantitative). There are unlikely to be more increases,”Bloomberg Intelligence senior commodities strategist Mike McGlone said in a tweet on Friday.

But silver could be more attractive than gold at this time, and not only because it is much cheaper to buy. Many commodity analysts closely follow the relationship between the prices of an ounce of gold for an ounce of silver. And it is issuing purchase signals.

“Historically, there have only been a few occasions when the gold-silver ratio traded above 80,” analysts at Blanchard, a precious metals investment firm in New Orleans, said in a recent report.

“The gold / silver ratio remains at 85 at this time. That indicates that silver is dramatically undervalued,”added Blanchard analysts.

That said, if you are going to buy gold, silver or any other metal, it is probably easier to do it through a stock-indexed fund that tracks the price of the metal instead of imitating Rico McPato and buying bars and coins for swimming in them.

The SPRE Gold Shares index fund is one of the largest funds in the world, with approximately $ 33 billion in assets.

For silver, there is the iShares Silver Trust, which has almost $ 5,000 million in assets.

And if you are more comfortable taking stocks instead of metals, there is also an indexed fund for gold and silver mine stocks. The industry is in the midst of a major wave of consolidation and mining actions could benefit from increased merger speculation.