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Friday, September 16, 2011

Money is a better investment than gold?

Precious metals like gold and silver are generally recognized as a good investment. Purchase of precious metals is a good way, an investment portfolio and a range up to a certain extent to diversify against the effect considered. Precious metals are particularly able to withstand the pressure of inflation, the war and other economic fluctuations often devalue other investments.

Buying precious metals is a way to preserve its financial resources and protection against economic downturns. Markets most commonly traded precious metals, silver the greatest benefit for the average investor and will be regarded by many as the safest investment.

The growth of silver and gold

In the meantime, metals have led to a growth in the precious metals bull market, silver has always shown the greatest percentage increases in these times. For example, 1971-1981, while the dollar fell and after the money has increased in value by nearly 5-fold. It was not uncommon to see in the bubble market of precious metals, metals, triple or quadruple in value, while gold has doubled.

One reason for the constant percentage of the profits of the money in gold is that silver has more industrial applications than gold, more money in the development of industrial applications all the time. The money is already used in soldering and welding catalysts for chemical reactions, industrial bearings, batteries, electronics and other critical purposes. There are also a number of new medical applications for money and uses of solar energy, water treatment, protective coatings and more. All this adds to the long-standing traditional use of money in photography, coins, jewelry, silverware and much more.

The use of money

Not just money for industrial use on the rise, there is enough money to meet current requirements. Despite the higher extraction recovery of money and money-and-recovery efforts, the industrial demand has exceeded the production of money over 20 years. As with any other, because the demand for money is to exceed the available supply, the price of money will grow.

Since the 1990s, when the production and utilization of the money back into the industrial demand, the supply of money on the ground began - money in circulation or in private hands - has fallen consistently. In Zurich and London, believes that the money supply by about 350 million ounces in 1991 reduced to about 50 million ounces today. COMEX silver fell by about 260 million ounces in 1995 to 100 million ounces. The governments of the world have very little stock of money, never again, and it is a generally acknowledged fact that the weight of gold in the largest banks in the world is included, far exceeds the amount of money over the existing soil.

Continues to decline, while the amount of money promised nothing good for the industry in general is good news for investors in applications metals.With money is precious beyond what is readily available in production, the money will almost certainly continue to value more quickly than to win gold or other precious metals. While there are important industrial applications, the demands money into growth and are in limited supply should remain a good investment for the money.

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