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Silver Bullion In Dubai: Investing Properly With The Gold-Silver Ratio Traders from all over the world have a set of tools that they use to make investment decisions much easier. One such tool is the Gold-Silver Ratio, a numerical statistic that looks into the weight of silver needed to buy an ounce of gold. Why is this ratio used by those investing in precious metals? Can this be used for physical gold products like silver bullion in Dubai? www.apmbullion.ae
In this article, we'll get you a quick rundown on the concept of the gold-silver ratio and what it means for your future investment plans. We'll also give you a simple explanation of how to incorporate it into your decision-making process. www.apmbullion.ae
What Is The Gold-Silver Ratio? When trading in the market of precious metals, you’ll always run into buyers and sellers for gold and silver products. One tool that they use to help them decide on investment decisions is the Gold-Silver Ratio. In essence, this statistic looks into how many ounces of silver are needed to buy just a single ounce of gold. Through this numerical ratio, one can check out the value of silver compared to the value of gold. From there, you can start making predictions as to where the trend is moving forward. For example, say that an ounce of gold trades at around a thousand dollars compared to silver which trades at around $40. This indicates a gold-silver ratio of around 25:1 in favor of gold. In modern times, the gold-silver ratio fluctuates according to international market prices and the demand for them. Before then, the ratio was set by governments as a means of monetary stability due to currencies being backed by precious metals. In the case of the United States, they adopted a bi-metallic monetary standard that took into account both silver and gold. www.apmbullion.ae
How Does It Help Investors With Investment Decisions Investors can take note of the gold-silver ratio due to its use as a tool for precious metal investments. Some take long and short positions on each of the metals due to the belief that if one metal rises, the price of the other one falls. From there, you can choose to accumulate more metal by trading according to the fluctuation of the prices. The trick with this strategy is not to build value but to stockpile the metal in increasing numbers. This will then allow you to maximize your opportunities during times when extreme gold-silver ratios are in effect. It also allows for ample protection against recessions, devaluation of currencies, and rising inflation rates due to their historical trend of growth despite economic downturns.
Strategies To Make Use Of The Gold-Silver Ratio Investing using the gold-silver ratio can be quite a challenge for someone just entering the market. For starters, you'll need to be able to identify your stop-losses and take-profits for you to minimize the risk during volatile market seasons. From there, you can take into account the gold-silver ratio and check which metal is stronger than the other. Here are some quick pointers for when you’re analyzing the price action of the gold-silver ratio: ●Gold prices decreasing faster than silver = gold-silver ratio DECREASE ●Silver prices increasing faster than gold = gold-silver ratio DECREASE ●Gold prices increase faster than silver = gold-silver ratio INCREASE ●Silver prices decreasing faster than gold = gold-silver ratio INCREASE During historic extremes, wherein the prices of gold or silver reach a record high or low, investors are in danger of a reversal. From there, you must decide whether a long position benefits you or a short position. You’ll also need to decide the bias you’re operating on: Silver or Gold.
APM Bullion - Excellence And Professionalism With Bullion Trading Silver and gold bullion in Dubai can be difficult to trade using tools like the gold-silver ratio. This is because physical bullion products require much more supervision and expertise when buying from the market. Selling is another problem entirely due to varying liquidity depending on how much you're willing to let go. For that, you'll need a bullion trading company like APM Bullion for the job! We're a dedicated team of trading experts specializing in handling products of gold and silver bullion in Dubai. Rakesh Rajdev Rajkot, our founder, has created a company that sees an opportunity and helps its clients seize it for themselves. If you're interested in working with one of the best precious metal suppliers in the UAE, then visit our website and browse through our selection of products available. www.apmbullion.ae
Contact Us www.apmbullion.ae info@apmbullion.ae +971 4 255 2874 403, Maryam Plaza, Above RAK Bank, Gold Souq Extension, Deira, Dubai