Gold and silver just seem to go together. They have two precious metals that we like investing in, especially after the strong performance of the metals in 2011, and gold series of consecutive annual profits stretching back a decade.
This year, gold futures have grown as much as 25% this year and silver futures as much as 75%. It is this last figure that really interests us though. It is indicative of growing investor interest in a metal that much more affordable than gold, but still offers many of the same advantages in the market for precious metals.
Gold and Silver Investment Options
The main agreements that we can point to are related to the different ways that gold and silver are sold and traded among investors. In most cases, a potential investor has a few different options:
* They can invest in gold coins
* They can invest in numismatic coins
* They can invest in exchange traded funds or ETFs
Gold and silver bullion coins produced by a number of other world mints. Some of the most actively traded options include the American Silver Eagle from the United States Mint, the Silver Maple Leaf from the Royal Canadian Mint, and the Austrian Philharmonic Silver Coin. These coins are issued each year and are generally sold based on the market price of silver, plus a surcharge. The mark-ups are $ 2.50 to $ 4.00 per coin, depending on the quantity purchased.
Numismatic gold and silver coins that are valued, not only based on their intrinsic value but also their rarity and condition. In some cases, an increase in the price of precious metals which do not result in an increase in the value of numismatic coins because other factors come into play. It takes some knowledge of the market and currency grading scale to invest in numismatic coins.
For many novice investors, exchange traded funds offer a viable alternative. Precious metal ETFs are traded on stock exchanges in the same manner as stocks and generally followed the price of the underlying metal. There are different types of ETFs, either physically or metal futures contracts and to make the price of the underlying metal track. The largest and most well-liked, the precious metals ETFs SPDR Gold Shares ETF (GLD) and iShares Silver Turst (SLV).
source:goldandsilverblog
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