When you first get into the world of investing in Forex, gold and silver are generally your first choices. These are the only assets that can be converted to cash easily and quickly. That’s the reason why there is a huge demand for these precious metals.
While these assets are not that hard to exchange, there are certain things that you need to keep in mind when you’re deciding to go for these two commodities. Read on.
One is a lack of liquidity. Right now, in this day and age, you might have heard of the notorious “Global Financial Crisis” or GFC. This means that many financial institutions have been collapsing all over the world and there are more people who are affected by this financial crisis.
This will mean more panic among investors and for this reason, the government, which has to maintain the stability of the economy, has to impose strict rules and regulations on the financial institutions. What this basically means is that there won’t be any more companies who can be trusted in dealing with each other.
In the current situation, a person must take advantage of the free market. Most of the financial institutions will start to serve the public instead of the other way around.
Silver has long been known as the “poor man’s metal”. This is because of its limited supply, which is mainly limited to mining facilities in the United States.
However, these facilities, which are located in Nevada, are rapidly being taken over by other nations like Canada and Australia. However, even though it’s a silver mine, it’s still considered to be one of the best silver mining sites in the world.
It’s also one of the best places where you can get information on mining from. Since mining is relatively cheap, you can invest your money in it if you’re familiar with the trade.
In contrast, gold is often associated with big and rich governments. You can’t trust the government to not abuse its power and corrupt its citizens’ rights if they’re going to print more money.
If you’re looking for a country where you can be sure that gold and silver will never be manipulated by the government, then you should pick the one that doesn’t even have a monetary system. When you don’t have a monetary system, you won’t have inflation and you will have good growth potentials.
Since silver is less popular, it’s worth mentioning that gold, in comparison, is much more popular. However, this is a difference in opinions and that’s why you have to analyze your options carefully.