precious metals

Silver Mutual Funds

Silver, like gold, basically offers the investor a hedge against what the stock market is actually doing. Precious metals can tend to go the opposite direction of the stock market because they stay strong in a down-turned economy. Silver mutual funds are a great way to invest.

Some may prefer to own the actual precious metal like silver pieces or gold bars but if you do not have an extremely safe place to keep the precious metal then a better idea would be to invest in silver mutual funds. You may just love the idea of owning the actual metal and if so then great have fun but if you would rather play it safe then invest in the precious metal industry by buying into mutual funds.

Precious metal mutual funds do not necessarily invest in things that are made with the precious metal but they invest in the companies that actually do the mining. Most invest in the big picture of precious metals and invest in all aspects of silver from the actual mining to the production and design of jewelry made from the precious metal.

If this interests you, start with doing some homework. Study up on precious metals and find out all you can about where they mine silver or gold or whatever the precious metal is that you are interested in. Get yourself a good, solid background before deciding to invest so you know what you are getting into. Follow some precious metal all the way from the mine to the jewelry store. Finding out what that final product like that silver ring you have on your finger goes through to finally get to your finger.

Research precious metal mutual funds online, also, this will give you a new perspective on mutual funds in general and how you go about investing in them. When you find one, or some, you like then call or send away for their prospectus and read it over carefully when you receive it.

If you do your homework the you should be able to put together a very diversified portfolio and not get “diworsified”. Once you have made your decision about what mutual funds you want in your portfolio then it would be a great idea to talk things over with a financial expert. They can tell you if you have over-diversified or “diworsified” as the case may be. You want your portfolio to be streamlined and somewhat predictable. If predictable can even be used when talking about the stock market.

You do not want to invest in too much of the same type of stocks or mutual funds because this will just increase your risk of loss in a volatile marketplace. Do not invest only in precious metal mutual funds either. The precious metals sector can be a volatile sector but still can be more stable than other sectors like the technology or energy sectors. Silver mutual funds can provide you with the diversification you need in your investment portfolio.

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Spot Gold – Short Or Long – Your Choice

Many people believe in the tangible value of certain precious metals, such as gold and silver. If you’re interested in buying gold you need to know what the spot gold price is so you can get the best deal possible.

Spot gold is an over the counter market and the prices are based on supply and demand, so the prices can fluctuate greatly . Spot price refers to the price that was quoted for the silver or gold that will be paid two days from the initial transaction date. Spot prices are determined in London and are fixed twice a day for gold (they are fixed only once a day for silver).

Sales of gold and silver are done in much the same way as currency pairs. Deals are made against the U.S. dollar. For instance traders can take a long or short position, just like with currency trades, while they take an opposite position with the dollar. You can also trade gold and silver against currencies from other countries too.

Also, similar to the currency trading market, the trades are conducted round the clock from Sunday at 6 p.m. EST to Friday at 5 p.m. EST. There are three major centers for trading gold and silver: New York, London and Zurich. There isn’t a central market for gold and silver trading.

When the markets in Europe and the New York market are both open, that is when the prices tend to be the highest. That means for traders in the United States there is a time frame of about four hours where the liquidity is at it’s highest. Liquidity tends to drop off later in the day closer to the time the markets close.

Due to the round the clock, and round the world, nature of trading gold and silver, huge trades can be conducted virtually instantly which makes for a real rough and tumble trading environment where supply and demand are the only real rules.

If you would like to get involved in this exciting, and volatile, market you can do so. Precious metals can be traded with Forex brokers online. Each broker will have their own fees and restrictions so you should be willing to spend some time shopping around so you find the best fit for you and your needs.

There are many similarities between precious metals trading and Forex trading, one of those similarities is the high risk nature of the market. This is not the place for an amateur to be. You have to take some time to learn how this market works and even then there aren’t any guarantee’s.

There are many places online where you can learn the skills, and even set up free practice accounts. This step is vital if you don’t want to lose your shirt. Ignorance is the number one way to lose a lot of money when it comes to trading precious metals.

Spot gold price is just one of many of the terms and concepts you’ll need to learn before you can expect to have any success trading precious metals. If you’re serious about learning this type of trading you can really make a lot of money. Just remember that the amount of success you’ll have will be in direct proportion to the knowledge that you have.

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