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Diamonds Gold And Silver – Breaking Down These Investments

Wed, Feb. 22, 2017 Posted: 02:09 AM


Millions of Americans have invested a substantial amount of money in stocks and bonds. Others are simply afraid to do so, since they believe that the markets are frequently manipulated by those with the most money. Whether or not this is true, it is always wise to explore other avenues of investment. Many people have already done so and this has led to a major increase in consumers investing in precious metals, such as gold, diamonds and silver. Is this truly the best way to invest your money? Is there any money to be made in these commodities?

During the past few years, the diamond market has been very erratic and volatile. Previous a CNBC analysis, concluded that diamonds were a good investment for those that were willing to enter into a risky market. Experts believe that many diamond investors will eventually experience heartbreak. In 2011, it was reported that consumers could have earned approximately $645 for each $1,000 they spent on diamonds ten years ago. So, there is definitely money to be made in diamonds, but it is also essential to be cautious. One of the biggest problems with diamonds is that normal investors will find it difficult to find avenues of investment.

And trying to find a way to sell diamonds can be even more difficult. Gold and silver are substantially different. Both of these precious metals are mainstream and it is very easy to find ways to invest in both commodities. Unfortunately, gold is also a risky endeavor. Gold is great when everything is going bad in the world. However, the prices of gold tend to drop like a rock when the economy is on the rise and the United States dollar’s value is increased. This happens just today after the FBI cleared Clinton their latest email probe. The announcement caused the price of gold to sink rapidly.

While stocks have climbed higher, gold as dropped nearly 20 points at this point in time. Of course, the election is right around the corner and that could change rapidly. Should the unthinkable happen and Trump manage to pull off the victory, it is highly likely that the price of gold will soar higher, while everything else will drop. Therefore, gold can be a good investment, but it is also slightly risky. Those that do prefer to invest in gold will need to do so cautious and pay close attention to national news, which could shift the prices in one direction or the other.

Investing in silver is a great way to add diversification to an investment portfolio. Although, silver doesn’t seem as impressive as gold or diamonds, it offers a wide array of benefits. Precious metals, including silver provides a worthwhile hedge as the dollar is depreciating. Analysts encourage an allocation of 10 to 15 percent of precious metals, because it will make one’s portfolio more solid. Many investors find that investing in physical bullion more appealing, plus investors never have to be plagued with making storage decisions.

Silver bullion is less expensive than gold, with many investors recognizing it as “the poor man’s gold”. However, it is a great indispensable asset, which cannot be said about the dollar. Whether you are looking to invest in silver bars, old coins, or certificates, you truly cannot go wrong. However, if you are looking to accumulate silver for insurance, your best option will be silver coins or bars. One of the greatest benefits of owning silver is it is extremely easy to manage.

Lynn Joesph