Investing In Gold and Silver – 3 Things You Should Know

Investing In Gold and Silver – 3 Things You Should Know

Gold and silver have long been recognized as valuable. In the last 5000 years gold is the only form of money that has never failed. That alone should tell you why investors flock to precious metals in time of crisis. Both gold and silver are two of the safest investments you could ever make. They also provide you with the best opportunity to increase your wealth.

If you are considering investing in gold and silver, here are 3 things you should know before you take the plunge:

#1 – Precious Metals Can Protect You From Inflation and Deflation

Both gold and silver can serve as hedges against inflation and deflation. Because of this, there are some experts who believe gold is an asset everyone should invest in. Andrew Carrillo, one of the top financial planners in Miami, advices all of his retiree clients to have at least 5% of their portfolio invested in gold. He himself has 50% of his total investment assets in gold.

And as he so eloquently stated, its not running out of money that's the biggest risk when you get ready to retire. Instead its running out of purchasing power due to inflation or deflation. Gold and silver can protect you from both.

#2 – Precious Metals Do Not Generate Income

This is one of the main reasons other experts advise against investing in gold and silver. Unlike most investments, precious metals do not generate income. The purpose of investing is to generate an income. This is especially true when you are nearing retirement.

In some cases you may be better off investing in dividend paying stocks or high quality bonds instead of gold and silver. Generally speaking stocks will appreciate over an extended period of time and are fully capable of dealing with inflation.

#3 – High Taxes

This is yet another reason you may want to reconsider investing in gold and silver. The government views gold as a collectible. Because of this you will be taxed as high as 28 percent on any profits you make as a result of selling your gold. When you sale your stocks, you are only taxed as much as 15 percent. That's a big difference.

When it comes to investing in gold and silver, the key is to focus on diversification. You should never put all of your eggs in one basket. You should also avoid gold collectibles or coin products that are considered rare. If you are serious about investing, buy bullion. 


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When will silver explode

When will silver explode I hear many investors asking? Well, that is a VERY good question.

In fact I am just have a chuckle to myself right now looking at my screen and asking "When Will Silver Explode"....WHY?

Well instead of TRY to explain it to you in layman's terms, how about I post a chart....

It seems that silver is already exploding as you can see on the chart above, silver was trading in an ascending triangle pattern for months before it decided to breakout. Since then, we have skyrocketed up to nearly $34 today. A pretty impressive move I must say! I did post further thoughts on this in our VIP MEMBERS SECTION HERE! 

Technically its a great move especially if you trade silver futures or own the physical stuff like me. But there are more things going on (technically and fundamentally) that you probably do not know about. 

Now I will be the first one to admit silver has probably over extended itself in the short term on the charts, and we have not seen a move like this in quite a while in commods. But take this as a warning sign to watch silver in the coming months. 

Will silver explode higher, or when will silver explode higher, I do not know, but I am really taking a liking to the silver chart right now. 

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