Over the years traders have used many different methods to track historical price trends such as a stock s price to earnings ratio p e tools such as these have given analysts a quick way to view financial instruments not just in terms of absolute price but in terms of relative value or the instrument s value in relation to something else.
Is gold or silver a good investment now.
There s still a lot of.
However a store of value and a good investment are two different things.
There s a finite amount of gold and silver in the world so their value tends to keep up with inflation for example.
And silver to be the better investment against gold going into 2020.
The ratio in modern times has averaged 1 60 says edmund moy who served as the 38th director.
Because of this we expect precious metals stocks to be a better investment than gold and silver going into 2020.
Before you gold trolls start hurling cyber insults at me i have to confess upfront that i don t mind if anyone owns gold.
Especially when the ratio reaches an extreme the gold to silver ratio averaged 47 1 during the 20th century.
I have a few coins myself.
By the time of writing this article silver was trading at 14 18 with a spread margin of 0 1 0 42 against gold s 1 201 40 at spread margin of 1 00 4 70.
While both gold and silver have attractive features gold is the better investment for the average precious metals investor.
The gold to silver ratio is now about 1 74 which means that 1 ounce of gold buys 74 ounces of silver.
10 the gold silver ratio favors silver.
Dalio and mobius urge investment in gold cash is trash ray dalio founder of bridgewater associates the world s largest hedge fund firm said back in january.
It s averaged about 61 1 in the 21st.
But i don t think gold is a good investment.
Today owning gold can act as a hedge against inflation and deflation alike as well as a good portfolio diversifier.
Silver s market demand is still dominated by bullion coins read more.
We also see a breakout taking place now.
Gold has a much larger liquid market that is driven mostly by.
For thousands of years silver has maintained a positive market demand as an investment currency and store of value.