People have aimed to acquire more silver and gold for thousands of years. While these precious metals have a longstanding history as a means of currency, they have increasingly become the choice of investors. If you are just getting into the trading business, or if you are looking for ways to safely diversify your trading portfolio, gold and silver make for very wise options. However, as you browse through Monex prices, and competing dealer’s prices, it can be hard to make heads or tales when identifying fair gold and silver bullion prices. In order to better identify great prices, you must first understand the origins of gold and silver bullion value.
Which is More Valuable: Gold or Silver?
Most people think that gold is always more expensive than silver, but the relationship between these two precious metals is much actually quite complicated. One of the reasons that gold often comes at a higher price than silver is because there is less gold available than silver. For every one ounce of gold in the Earth’s crust, you will find 17 ounces of silver. Therefore, the supply of silver is much greater, making the Monex prices of silver bullion lower than those of gold bullion.
However, you must also consider the demand and growth in demand of these precious metals. While the demand for gold is quite high, especially now that more investors are turning to it, it can be argued that the demand for silver is showing a higher demand potential. This is because silver has the conductibility, strength, malleability, and durability to have a very large number of applications across almost every single industry.
More importantly, silver is used in industries such as electronics and healthcare, which are both experiencing rapid growth in demand. Because silver can be purchased at reasonable Monex prices, and it has such great potential for growth, it can be argued that silver is a very smart investment choice.
How Gold and Silver Bullion Prices Can Be Manipulated
When you are working with finite commodities such as gold, silver, and other precious metals, you would think that there would not be many opportunities for price manipulation, but that is not true. Unfortunately, there are several ways that the true value and price of precious metals can be diluted and skewed.
The true supply, demand, and value of gold or silver can become muddied through investments that do not necessarily involve the purchase of physical materials. For example, when individuals invest in mining companies, options, exchange-traded funds, or future contracts. Large banking institutions will often lease their gold and silver to investment banks, which can cause a false increase in supply. This causes the prices of precious metals to decrease.
The Benefits of Working with a Reputable Bullion and Coin Dealer for Reasonable Prices
Trading and investing in gold and silver bullion can be a lot more complex than you might imagine. This is why it is always wise to do your research and find a dealer that can provide reliable products, services, and support. With so many scams out there, it is important to have people that you trust in this industry. One way to do this is to find a trading company with many years of experience, and a membership in the Professional Numismatics Guild.
Find a long trusted supplier of all things gold and silver bullion trading. They have been providing dependable trading services to American clients for over 40 years, and there is plenty of evidence to support their very strong reputation in this industry.