18 REASONS TO BUY GOLD IN 2018 NEW CHALLENGES AND CHOICES SERVE TO ENHANCE THE VALUE OF GOLD More than the symbol of prosperity and prestige it has been throughout the history of civilization, gold remains a true store of value today. That it will be anything less than this at any time in […]
Here is Why You Should Invest in Platinum
Platinum is probably the most under appreciated precious metal amongst investors historically, but we are now starting to see an increase in Platinum investment.
Its value is closer to gold than it is silver (at the time of writing an ounce is $866), however, the return on investment is not as great as either gold or silver, yet. This is probably due to the fact that over 70% of it comes from one country, South Africa and therefore, the return depends on mining and the economic state of the country. Currently (over the past 5 years 1/2010-11/2015) the return has been poor as its value as steadily decreased from $1,697 to $866 an ounce.
For the smart investor, diversification is key. It is for this reason that many investors have taken to investing in gold and silver, with an aim of protecting their savings in the face of an unpredictable investment environment. It does have a much shorter history in the financial markets than gold and silver, and this is because, for a long time, the price has remained significantly higher than that of gold. In fact, less than a decade ago, the price was 150 percent that of gold. Fast forward to today and the price has fallen to levels that are permissible for the willing investor. That being said, it remains scarcer than other precious metals, and for this reason, tends to attract higher prices per unit. These prices tend to change depending on supply and demand. During periods of economic uncertainty, the price tends to go down. This offers an opportunity for an investor to acquire it at reduced prices and diversify their investment portfolio in the process.
Reasons For PLATINUM Investment
If you are wondering whether you should be thinking of investing in alternative, like Platinum investment, the answer is yes. And here are the reasons why:
1. It has recorded a steady and improved performance in the market, compared to silver and gold (although of course, like all investments it fluctuates). In the past, there was not much popularity surrounding this metal, and many investors opted to go for gold and silver. In today’s market, it has proved to the point that it can hold its own, and many investors are turning to it in a bid to get better returns.
2. A strong demand for vehicles creates a higher requirement for it. It is not only a precious metal but an industrial one as well. It is used in catalytic converters, creating over 40 percent of its use. It is also used in other areas as a replacement for gold, such as for jewelry, dentistry and even in electronics. As auto sales increase, the demand will go up, resulting in better prices and higher returns for investors.
3. There are certain factors that could result in a lower supply, meaning better prices for the investor who already has it in their portfolio. Key on the list of factors is the fact that almost all (75 percent) of the world’s supply comes from South Africa. Reliance on one main producer means that any upsetting developments and instability in that country’s mining industry have a huge impact on prices. An example is the mine strikes and turmoil that occurs in South Africa.
4. Renewed growth in China is an opportunity for demand to grow, bearing in mind that China is one of the world’s biggest consumers of platinum jewelry. In fact, China is responsible for 23 percent of the world’s demand, and an increase in this demand will result in an increase in demand for the metal, hence higher production.
In order for it to be saleable in the commodity market, the ingots must first be assayed in a similar manner to what is done to gold and silver. If you wish to buy and store it in its physical form, you have the option of getting bars, coins, and bullion. If you are thinking of adding it to your retirement account, you will require the services of a custodian. The custodian will find the it for you, get the paperwork sorted on your behalf and keep the it safe for you.
Alternatively, if it is not for an IRA, you can opt to utilize various routes to invest in it. For instance, Swiss banks give the option of buying and selling the metal like foreign currency, by making specific trading accounts available. What this means is that you, the investor, will not own the actual metal. Rather, you will have a claim against the bank for a certain quantity of metal. This is a much easier route to follow, especially if you are freshly ventured into the field of investing in this and other precious metals.
There are several steps that you should take when considering Platinum investment.
• The first thing you need to do is gather as much information as possible. Investing in precious metals is a great way to protect yourself and your finances against economic uncertainties, and Platinum investment is no different, but you must be knowledgeable about what you are doing in order to succeed. If you are in doubt, always consult a financial advisor. In fact, a financial advisor should be the first person you talk to once you decide that you want to invest.
• Decide how much risk you are willing to take on. This should be arrived at after intelligent financial calculations. You must correctly determine how big a portion of your finances you are ready for Platinum investment. Precious metals are much less volatile than stock markets, mutual funds and so on, but it does not mean that they come with zero risk.
• Follow the correct procedure when investing. Unfortunately, many investors are scammed when investing in precious metals because they have no clue that there are proper channels and regulations that have been stipulated to regulate this type of investment. To avoid falling into this kind of trap, seek the services of a reputable financial advisor and only use the services of financial institutions that have been accredited and approved for such investments.
If you have been wondering how to protect your financial future, consider diversifying your investment portfolio. It does not matter whether you are building a nest egg for your retirement, or just saving something for a rainy day, precious metals, and platinum, in particular, have the ability to offer you financial protection.
Just like silver, this metal is both used for investment product and industrial use. As such, it can move out of direct linkage with gold based on the pushing and pulling occasioned by industrial demand. In the recent past, the platinum/gold spread has narrowed down to below $100 per ounce. This has been mainly due to gold’s falls. There continues to be widespread support for this alternative to gold, although the demand for it sometimes gets relatively muted.
Investors have been waiting on global stocks to get depleted, which would mean better prices because of the supply crunch. When it comes to comparing it with gold, it is important to remember that they have one main difference: while as mentioned it has investment and industrial appeal, gold is driven purely by speculators and investors. The market is also smaller and less liquid compared to gold.
During periods of low global economic growth, it is usual for both prices to converge. It is very rare for the price to fall below that of gold, and when this happens, it usually does not stay there for long. This is because both metals have hedge qualities. When the economy is booming and growth is at an all-time high, its price tends to skyrocket faster than gold prices.
If you are thinking of Platinum investment as a gold alternative, it is important to keep in mind that the current prices may not seem very attractive. However, a synchronized global economic growth is something that would boost its price. At the moment, the global economic growth is not synchronized, as can be seen from the recovery in the US and the UK but struggles in Europe and China.
Keeping in mind that the two largest markets as mentioned are autocatalysts in Europe and jewelry in China, a growth in these two markets will have a direct impact on rising prices.
Gold is facing competition from other assets such as properties and equities, meaning that it has not done as well as expected. That being said, investors who are interested in reaping long-term rewards continue to invest in both too.
If you are wondering which precious metal to invest in between these two, a deeper analysis of market trends and a consultation with your financial advisor should make things clearer for you. And remember, he who does not invest, does not stand the chance to reap returns.
When it comes to precious metals, gold is usually preferred by more investors than silver. However, what you need to understand is that just because gold is more popular does not mean silver is less attractive. In fact, adding silver to your portfolio is a great way to diversify and protect your investments. There are two types of silver commonly traded in the market today, and these are silver bars and silver coins.
If you are wondering which one you should go for, the answer is that both of them make for good investments. However, there are certain characteristics that make silver coins more desirable. For starters, silver coins can be bought and sold more easily than bars. When selling bars, you do not have the option of selling a portion, either you sell everything or nothing at all. This is not a problem that is experienced with silver coins.
The fact that silver coins are government-minted is another reason why many people tend to trust, and want to invest in, silver coins. Even when silver prices wildly fluctuate, it is unlikely for government-minted coins to be called into question. It is also important to remember that coins are universally accepted, and so for an investor, it makes a lot of sense to invest in silver coins.
The gold/silver ratio analysis shows that investing in silver coins is a wise move. This ratio is used to determine the absolute and relative prices of gold and silver, and while it currently stands between 50:1 and 60:1, it is expected to normalize to 16:1 in the near future. Coupled with declining below-ground supplies, it is expected that silver will be a much sought after commodity in the near future.
It is also important to remember that silver has a wide variety of uses, especially in the photography industry. As demand for industrial silver soars, it is expected that owners of silver coins and even silver bars will get great returns on their investment.
Investing in precious metals is a great way to approach diversification and protect your portfolio against economic fluctuations and inflation. And while some investors are skeptical about adding precious metals to their portfolio, those who have report no regrets. Go ahead and get yourself some silver coins. You do not have to invest all your money in them; you can simply set aside a small amount to invest in silver coins, and decide how to proceed based on the returns you get thereafter.
If you are interested in investing in silver, be it coins or bullion, then if you live in the US, check out my recommended silver coin and bullion supplier. If you live outside the US then check out this leading supplier of silver.
- London Address: FDR Capital Ltd, Commerce House 2nd (floor6), London Street, W2 1HR, London, UK
- New York Address: FDR Capital LLC, 300 Park Avenue (floor 12), New York, NY 10022, USA
- BBB Rating: A with zero complaints in the last 3 years
- Trust Pilot Rating: 9.1 based on 19 reviews
- website: www.goldbroker.com
On this page we give you a simple GoldBroker review. Other websites can at times give way too much information that you end up with information overload. We like to keep our reviews simple, so here is our ‘simple but factual GoldBroker review.
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]Credibility:FDR Capital, also known online as Goldbroker.com who do specialize in actual bullion ownership and are in fact recognized as one of the leading international gold brokers. So if you are looking to invest in metals, other than for an IRA, you may want to consider them.
FDR Capital / Goldbroker.com was founded by entrepreneur Fabrice Drouin Ristori. They provide 100% physical ownership of silver and gold, which means they do not offer mutual or fractional ownership.
Also, what makes Goldbroker one of the leading metal providers around, is the fact that one of their board members is Mr Egon Von Greyerz. Mr Von Greyerz is the founder of Matterhorn Asset Management and is recognized within the financial sector as one of the top 5 gold fund managers worldwide.
Goldbroker.com is one of the very few companies that offer direct storage of physical gold and silver.
“Direct storage” means that our clients have a storage account opened in their own name and that Goldbroker.com doesn’t store for its clients. So there is no exposure to intermediation risks in terms of storage for our clients. A storage contract is signed in between our clients and the secured storage company we partnered with, Malca Amit. This proves that first our clients store in their name and second, that their identity is known by the storage company. » Fabrice Drouin Ristori.
So when it comes to storing your gold purchases it is done in secure warehouses in Switzerland, The US, Canada and Singapore. Additionally, storage in Switzerland is within a VAT Free zone, so you do not pay value-added tax on your purchases. The storage company who keep hold of your items is independent of FDR Capital so there is no confusion over who actually owns the gold.
Benefits of investing in gold through FDR Capital / Goldbroker.com are:
- You can buy physical gold and silver in bar and coin form
- You have complete ownership of the purchase
- You hold all stock in your own name with each purchase having its own unique serial number
- All storage partners are fully insured for your safety
- You can inspect your purchase at any time
- You can have home delivery once you have completed 1 years minimum secured storage
- It is stored in a VAT free zone
- There is no exit penalty whenever you wish to sell
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]Minimum Investment amount: $5,000 minimum quantity of gold or silver
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]Reviews On GoldBroker Across The Internet
- BBB Rating & Complaints: A rating & zero complaints in the last 3 years (Find Details Here)
- BCA Rating & Complaints: No Listing
- CitySearch: N/A
- Complaints Board: No Listing
- Facebook: Click For Profile
- Google+: Click for Profile
- RipOff Report: No Reports
- Trust Link: No Listing
- TrustPilot: 19 reviews generating overall score of 9.1 (Find Details Here)
- Yellow Pages: N/A
- Yelp: No Listing
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]Do They Buy Back?: They do offer a selling service where you can sell to them precious metals. You forward them a sell order by using the secured messaging service that is on your account. When GoldBroker have received your sell order they then send you a document to be signed to order the release of the products from the vaults.The resale price is based on the spot price at the time of the transaction.
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]GoldBroker History:
Goldbroker was founded by entrepreneur Fabrice Drouin Ristori. He graduated from Kedge Business School in France in 2004 when he then moved to the Mediterranean island of Malta where he started two companies that specialized in the online gaming sector.
he went on to sell both companies and then he started his own private investment company, FDR Capital Ltd.. In 2008 the company started to invest in physical gold and silver.
In April 2011 Mr Ristori launched Goldbroker.com. The purpose was to create a solution for investors where they could store precious metals in their own name without any exposure to intermediation risks. With Goldbroker.com, clients have a direct legal relationship with the storage company thus removing counterparty risk at the storage level.
Well-known gold fund manager and founder of Matterhorn Asset Management, Egon von Greyerz joined the Board of directors and became a shareholder of Goldbroker.com Europe in 2012.
Goldbroker.com then expanded rapidly on the European markets, with a 250% growth rate of its turnover in five years, before opening an office in New York in 2015.
[mks_icon icon=”fa-info-circle” color=”#72982b” type=”fa”]Things To Consider
GoldBroker are a relatively new player in the gold investment market, however, there are very few companies that have the backing and reputation as GoldBroker do. With one of the world’s leading gold fund managers on the board of directors the direction and future of GoldBrokers is in good hands. With Goldbroker also offering storage outside of value added tax zones, this benefit puts them ahead of many other precious metal providers.
The Gold Market has Just Experienced A Historic 70 Year Breakout From Oil
A recent article on King Word News reported that the gold market has just done something that it has not done for 70 years, and that is it has held its price while the crude oil market continues to decline at an alarming rate. There have also been a number of reports in the financial media that gold too is on the decline, yet when you look at how gold has been performing over the last 12 months, it has fluctuated between $1250 and $1005 an ounce. Compare that to oil on the other hand over the same 12 month period and you will see that oil has dropped from a high of $60.13 a barrel to its current price of $31.35 a barrel.
As you can see from the chart to the side, both oil and gold have historically (although the chart only goes back to 2006) over the past 70 years, run almost along side each other, albeit except through the recession of 2008/2009.
What this chart, along with other data shows us, is that although gold has dropped in price since its 2012 peak, compared to other commodities and in particular, oil, it is performing very strongly, in fact, it is holding.
So what we are seeing here in this historic breakout, through gold holding its price while oil collapses, is that Gold is possibly now entering a bull market. It is of course too soon to predict, and many experts are saying although gold is not in a bull market yet, it is coming in 2016, the question is when?
What this separation from oil has shown us is that a bull market is getting close, closer by the day. Check out BullionVault for more information on gold investing
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