I have noticed that many of my customers who are dealing with import of used cars from Japan try to diversify their investments. Once they get profit from their major profit income (buying cars from Japan and selling them locally) they tried to invest money at least in three major fields: real-estate, precious metals and car business. Later, while talking them by phone completing next deal, I found out that right investment in gold and silver may bring them income of 12% to 25% per year.. just like real estate! They even like it better than real-estate or car business, and it is because from long term perspective price for gold and silver never go down. Understanding how risky maybe to concentrate only on car business, where market price and import regulations changes, competition becomes more severe day by day or real estate business where huge investment never guarantees you stable return, cars dealers tend to invest their extra profit into gold and silver. Why gold and silver, please check out reasons below:
Why is Gold Valuable?
Even since the days of early civilization, gold has been considered valuable for a number of reasons. Ancient kings lavished their palaces with gold at every turn and it has always been seen as a sign of wealth and power. Today, we consider gold so valuable because it’s beautiful, useful, and rare.
There’s a reason why there is such thing as a “gold standard.” From jewelry to interior design to fashion, gold is seen as one of the most beautiful metals available. But don’t just take our word for it! Scientists have actually studied why we are attracted to shiny things and it boils down to our thirst for water. Our genetic makeup draws us to the mirage of sparkling water and this translates to technology, fashion, and many other categories! Gold is the epitome of beauty and sheen.
Not only is gold beautiful, it is also practical and used in a number of ways! It does not tarnish or rust easily, which has made it useful for many applications including being used within electrical circuitry. Gold has also been used as false teeth in the past because it doesn’t harm the human body as other metals might. Some even consider it the world’s most useful metal! Common uses for gold include:
- 2.Gold coins
- 3.Manufacture of electronics (gold is a highly-efficient conductor)
- 5.Medical uses (injections of small amounts of gold is sometimes used to treat arthritis!)
- 6.Space advancements (NASA uses gold in hundreds of ways)
Finally, gold is rare and, as any self-respecting Economics 101 student will attest, value is derived from supply and demand. Due to its relatively short supply and the overall scarcity of gold, it has inherent value. In fact, according to Science Focus, all the gold mined throughout history would fit into a 20 meter by 20 meter square box. One reason why gold is so rare is because it is a relatively heavy metal, meaning that it is hard to naturally produce. It needs incredible levels of heat and pressure, such as a collision between neutron stars. No wonder it’s expensive!
But, gold is not totally unattainable. It can still be derived from mining, panning, or purchase. Its scarcity makes it extremely valuable, especially in the case of natural disaster. The US dollar continues to shrink, while gold holds (or increases) its value.
Gold is one of the most beautiful, useful, and rare compounds in our universe. It can be used for everything from beautiful jewelry to NASA spaceships. In addition to all those cases, did you know that it can also be used for retirement? Gold can be added to a 401(k) or IRA account as a diversified investment type. If you’d like to learn more or rollover your retirement savings into a Gold IRA, contact us today.
Here’s Why You Should Invest in Silver
When opening or adding to a precious metals IRA, most people initially consider investing in gold. This makes sense, as gold is the commodity that gets all the headlines and offers numerous benefits, including consistently good returns over the long term.
But gold is not the only option for building a precious metals IRA. Silver is also a terrific choice—and may even be preferable for some investors depending on their current financial circumstances and future goals. In fact, here are eight reasons why you should invest in silver if you’re not already doing so:
- 1. The spot price of silver is significantly lower compared to gold and platinum, giving investors an affordable way to open a precious metals IRA and begin saving for retirement.
- 2. Silver prices are expected to rise throughout the remainder of 2016 due to the weakening dollar, which makes this an ideal time to buy.
- 3. Industrial demand for silver (for use in consumer electronics, medical equipment, glass, and other common products) is also on the rise and will help drive up prices even more.
- 4. Along with increased demand, the supply of silver is contracting as mining operations around the world slow their output.
- 5. The gold-silver ratio, which indicates how much silver is required to buy an ounce of gold, is trending downward and currently sits at 67. The smaller the ratio the better for silver buyers, so this is another positive sign for investing in this precious metal.
- 6. Since the spot price of silver is relatively low right now compared to historical values, there is plenty of room for future growth.
- 7. Just as with gold, any silver bullion purchased for a precious metals IRA is a tangible, physical asset with a lasting presence that cannot be compromised by hackers or computer malfunctions or instantly devalued by governmental collapse.
- 8. Silver provides investors with an inexpensive means of diversifying their portfolio as a protective measure against market volubility.
If you’re interested in opening a precious metals IRA but don’t have the funds required to buy gold, consider starting with silver instead. Silver offers many of the same advantages as gold at a far more affordable price, so place your order with American Bullion today.