Investing in Metals: Conservative and Safe
Some people think that the best way to start investing is to choose an instrument with a banking institution, the most common one note, like other investment funds, but there are also those who decide to buy gold and silver.
And is that unlike traditional investments, savings in metals has the advantage that its value is not devalued, on the contrary, its trajectory over time is increasing. The professor of Financial Management and General Management of the School of Learning and Development Management (ICAMI) added: “Although we may have low cycles are consistently on the rise.” A clear example is the Troy ounce of silver has generated 26.47% return in just so far this year, while the 8.28% recorded Centenary utility in the same period. If we compare the yields with the Certificates of Treasury bills which recorded 5.09% in productivity, it is confirmed that the metals offer much higher yields.
Alba Monroy warns that it will always be a risky investment for the economic, political, social and not just a country but worldwide.
The same happens with metals, but with the difference that in difficult times of political instability, uncertainty prevails as the cost of these metals increases, they become more precious and the most conservative, says the expert.
A clear example is what happened in the 2006 presidential election year, concerns.
And this exercise is that the value of Centennial fell to 8.450 pesos 7,300 pesos and the ounce of silver from 110 to 165 pesos.
He described the situation clearly illustrates the value of the metals, because if a person acquired in the Centenary in 2006 a 7.300 pesos, now could be sold at 15.000 pesos.
So, in an environment of uncertainty not only internal but global financial crises, epidemics, failures of large international companies, loss of GDP globally, despite all this, metal coins, their value increases .
Even, “I could say that the metals are due to the following equation: the higher the risk, the more value, more uncertainty, become more valuable by providing certainty.”
More advantages
In the above we should add that such coins are accepted throughout the world, which may not happen with some tickets as they are only a representation.
Alba Monroy explains that behind all the paper currency to be issued in any country are the reserves of metals, particularly gold.
Another advantage is that people can hoard the coins in your home, do not occupy much space and so “those who are very fussy with their money and do not like to lose perspective, this is a good option.”
Worth remembering that although the values in the home are vulnerable to theft.
Two markets to buy and sell
As to buying and selling, there are two markets.
One is the formal, which are brokerage firms and banking institutions, and informal, who are devoted to numismatics, collectors or simply intermediaries.
The difference is that in the first, the price of these metals coins are due to an international market, while in the latter are more closely tied to the will and experience of the appraisers.
So very sure if someone is in need of selling such securities and goes to the informal market, will receive less money in return.
And if that is required is immediate and temporary liquidity, firms pledge are the alternative.
Gifts that encourage savings
Gold and silver are precious gifts and very well accepted. So that gift is tantamount to handing a small investment, which eventually can grow.
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