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Impact on Gold & Silver Markets

In terms of investment, both gold and silver have been worked as valued commodities for ages. Despite the fluctuation in gold and silver prices people have invested in these precious metals for profit in a long run. The main reason behind people running after gold and silver is not their beauty but their effectiveness in the investment market. Though silver might not be as popular an investment object as gold it, silver is surely one of the smart ways to invest in the market. Investing is silver is also a practical decision as well. It should be kept in might that because of the fact that silver remains under the ever looming shadow of gold, the price of silver is largely set by gold prices in the market. Despite this, silver proves to be a good investment option has it has the power to offer you profitable returns. In the recent years, there has been a significant rise in the demand of silver in the market and thus now is a good time to invest in this precious material.

Should you invest in Silver or in Gold?

India is a country where gold is looked as the most coveted precious metal. So in this scenario, comparison between gold and silver is not really a question to be asked as the chances of silver taking over gold is not very high. Indians choose gold most of the times and during weddings this demand of gold raises sky high. However, silver is ascribed as a metal that is generally bought by the not-so-well doing class of the society and thus does not have the grandeur of gold. This is one of the reasons that the highly rich class of India does not now the benefits that investing in silver can bring and thus they only invest in gold.

It can be said undoubtedly that investing in gold has given huge profits to the individual investors. However, it should also be kept in mind that silver has taken over gold in regards to the profit amount that is returned to the investor. So, it gives all the more reasons to invest in silver. The most intelligent way to gain the highest returns would be to invest in both gold and silver. In this way you will be able to reap the profits out of both the precious metals.

Reasons affecting Gold and Silver Price:

There are various reasons that affect gold and silver prices. One of the main reasons is demand and supply. If the demand of a particular precious metal is high and the supply is not up to the mark then it is natural that the price of that metal will rise. The global and national economic trends also affect the prices of gold and silver. Currently, the emergence of crypto currency also affects the market value of gold and silver. Another thing that affects the price of gold is the geo political factor around the world. Gold is more likely to do well when there are certain geo-political troubles going on. Moreover, given the fact that international gold is dominated by dollars, naturally when dollar prices weaken, gold prices go up. Strength of the dollar also works as an active agent in denoting the price of silver. If you review companies like Regal Assets, you will note how willing they are to buy back precious metals from their customers for these reasons.

gold and silver

Crypto currency and investing in Gold and Silver:

Presently the market of crypto currency is considered as a rising market. Bitcoins are considered as digital gold’ and thus you can think of investing in bitcoins too. If you invest wisely in the crypto currency market then you stand the chances of getting high profits as well.

Investing in both gold and silver can be proven to be profitable if you invest wisely. So before you invest in the market, make sure you know most of the avenues of investment. Make a thorough market research and then invest in the precious metals. You can also invest through the reputed companies like Regal Assets and Rosland Capital. Investing through good companies will assure that you receive sound advice on investment issues and thus ensure a profitable return. Moreover, you should not invest in gold and silver just whenever you want to. First, you should check the market condition, understand the demand of the metals and then only invest. Making an investment in a hurry will not ensure a profit and you might rather end up losing money.

Impact of Technology on Commodoties

Cryptocurrencies investment concept. Investor with digital tablet and virtual tradeview graph.

Cryptocurrencies have gained high prominence in the last few years. The prices of bitcoins are expected to rise more in the next few years. They are known to be better digital alternatives in comparison to fiat currencies. A wide array of countries views cryptocurrency as the next digital money. Cryptocurrencies may be used for circumventing the control of taxes and capitals, leading to enhanced demand among businesses and customers. Cryptocurrencies have turned out to be the prime choice of people in order to control inflation and performing frictionless transactions. Investors are using these currencies as the assets to the diversified portfolios.

What are cryptocurrencies

A cryptocurrency is considered to be a virtual or digital currency which is designed for the medium of exchange. There has been a rise in the usage of cryptocurrencies as they are useful in securing and verifying transactions. They are also useful in the creation of new currency units. With cryptocurrency, encoding becomes really easy whereat deciphering is hard without the key. Thus, it can be said that creating cryptocurrencies are very hard. However, performing transactions is really easy with cryptocurrency.

Cryptocurrencies are recognized to be entries in the pseudo-anonymous and immutable database referred to as the blockchain. Blockchain happens to be a public record which is verified by a plethora of nodes that make the counterfeiting of coins really hard. Thus, it is really challenging to trace the transaction that occurs between individual wallets or accounts.

Effect of technology on the global economy

Bitcoin is now being referred to as the digital silver. It is now coming as the latest market segment for the investment purpose. Bitcoin and silver are known to be different kinds of investments. People are investing more in bitcoins primarily after conducting research on the silver prices today. There was a time when people give more preferences in investing in silver and gold owing to the relative resistance to inflation.

The growth of silver has been found to be less volatile and fairly steady in comparison to Bitcoin. People prefer investing in Bitcoin as they have a higher chance of faster growth. The demand for bitcoins is growing at an exponential rate. All thanks to the cryptocurrency technology, it is more real-time and rapid. As there is no involvement of middlemen, the profits or growths of cryptocurrencies are certainly higher in comparison to oil, silver or gold. At present, bitcoins are considered to be a dynamic form of investment. They are considered to be a conventional safe choice, in comparison to other forms of investment, available in the market.

The market size

For cryptocurrencies to have an impact on the prices of the gold, it is a prerequisite that there should be a shift to bitcoin demand from gold demand. Although cryptocurrency and blockchain offerings are now more common, they are yet to a long way in comparison to the demand for gold. Though the market for silver is large and more established at the current moment, statistics reveal the fact that bitcoin markets on the rapid rise. As there is a growth in the market at a steady rate, the growth of cryptocurrencies is expected to be much higher in the upcoming years.

How cryptocurrencies will have an impact on the silver market in the near future

Bitcoins have a positive flow of money as they are mined and they have monetary bases, which are expanded with each block. For the bitcoins, almost $9 millions of new money are entering daily for matching the new supply. Gold is considered to be the global asset for hedging against the potential market risks.

In accordance with studies, investors are really interested in making investments in Gold. It is recognized to be the mainstream asset dwarfing equities and different similar assets. After taking a closer look into the financial sector, it can be said that bitcoins seem to consume the interest of investors in Gold. If you take a close look at the global picture, the trend may not be clearly visible. As you appreciate the global interest of investors in the gold, which is driven by different countries it indicates that with the passage of time, the cryptocurrency will share the risk asset crown along with silver and Gold.

Although bitcoins now form only twenty percent of the market, it has exponential growth, as compared to silver prices today and the rates are going to enhance in the near future. Bitcoins are now used for different transactions and other emergency use cases.