Gold and silver investments

Gold and silver investments have existed for thousands of years.

Even in developing countries, where most people do not know how to read and write, gold and silver investments exist.

Way back when Singapore was not even a country, the people were mainly immigrants from China, India and other countries.

Those poor peasants knew the value of gold and silver investments.

They did not know how to speculate.  They only knew about long term holdings.

They bought gold and silver jewelries for the future generation.

Those of us who inherited gold coins, silver coins, gold bars, silver jewelries, and other physical items are very grateful for the wisdom of our ancestors.

In those days, it did not take much knowledge to kick start gold and silver investments.

They just entered the goldsmith shop and bought the items.

They would then passed down to the children, and grandchildren.

Gold and silver investments are for everyone.

The difference between present generation and the past generation is that of perspective.

Present generation has no patience for holding an asset for many years.  They do not think about passing anything down to the future generation.

In this sense, the volatility of gold and silver prices is good for them.

The huge swing of silver price is extremely good for short term trader.

Imagine buying silver at the end of January, when silver was just $26, and sold it when silver was $49.

When silver crash occurred, the trader bought silver at $34, and sold it when the price was $39.

The next silver crash bought the price down to $32.

The volatility of silver price promises great trading experience, provided you have the money and the gut for it.

Some investors, especially new investors to the precious metals market, are scared off by the huge swing.

What about long term investors?

What if you want a long term perspective in gold and silver investments?

The volatility provides buying opportunities.

You can wait for a week, a month or a quarter for the next silver and gold crash before making your purchase.

As long as you are willing to wait, and you have the money for it, you can enter market at the right time.

Before you enter market, it is important to read a few forum posts.

You need to have a feel about the market sentiment.

Long term investors felt that the price of silver was high at $40, and they had voiced out the concern about the spectacular upswing in silver price.

Most of them held a wait and see attitude.

They were not buying nor selling.

If you had felt the sentiment among the investors, you would not have sunk all your money into the gold and silver investments at that time.

This is a data chart from Kitco.  You can see the rise and fall of silver in a matter of days.

Since the accumulative average price is $34.47, you would have gain if you bought at or below this price.