Both silver and gold can function as safe haven assets, but gold tends to have a better track record over longer periods of time. That said, in shorter periods, the specific dynamics of each market end up being more important for their respective returns. Regardless of the asset you buy, remember that neither asset generates cash flow, so the best thing for long-term investors would be to take a buy-and-hold approach with a profitable and growing portfolio of stocks. The gold and silver markets are as liquid as possible, so you'll never have to worry about supply shortages or getting “stuck” with metal.
It is also important to do your research and read Gold IRA investment reviews before investing in gold. As the son of an award-winning gold digger, with family-owned mining claims in California, Arizona and Nevada, Jeff has deep roots in the industry. While gold and silver bars should be considered long-term holds, there will come a time when you'll want to sell. Therefore, the price of gold moves as investors assess their own investment needs, to what extent they want security and the return expectations of other asset classes, such as stocks and bonds. Remember that gold is inversely correlated with other investments, including stocks, so you must have a significant amount of ingots before a stock market selloff occurs.
The daily chart above shows that April could offer a slightly lower global price, but history shows that March is the month in which gold falls the most and is therefore one of the best times to buy. On the contrary, when times are good, investors tend to take their money out of gold and put it in assets with greater ties to the economy in general. Not only is gold worth significantly more per ounce than silver, but it's also the denser of the two metals, making a specific volume of gold worth much more than an equal volume of silver. Just like when you have a one-dollar bill in your hand, you are sure to be able to have your investment in the form of gold bars or silver coins in your hand (or keep it in your safe deposit box).
I don't want it to sound like a broken record, but like gold and silver, platinum isn't the investment you're looking for. If you think about the global obsession with gold, it's easy to get carried away by adventure and mystery, such as searching for gold during the gold rush, pirate ships and treasure maps. This means that, from a historical point of view, the best times to buy gold are early January, March and early April, or from mid-June to early July. Demand for gold and silver comes from different sources, with gold being primarily an investment asset and silver an industrial asset.
The prices of gold and silver move significantly from year to year, so the best way to get a general measurement of the prices of these metals is to consult the semi-long-term charts. Unless you want to get into the jewelry making game, investing your hard-earned money in precious metals such as gold, silver and platinum isn't the best use of your money.
