Gold Or Silver?

• Gold is the object of dreams and the currency of kings. It is the most popular of all precious metals, but at more than $1,400 an ounce, not everyone can afford it. Silver, at about $40 an ounce, is a far less expensive alternative and that is why it is known as the poor man's gold. Gold made impressive gains since the early 2000s and so has silver. If both gold and silver continue to appreciate, silver may have a greater chance of doubling in price.
  
  

Know the Spot Price

• Routinely check the spot price of gold and silver throughout the course of the day. Several online dealers offer free quotes on their websites. Keeping an eye on the spot price of gold and silver over a period of time will give you an idea of the price patterns of the two metals. Gold prices tend to move up and down in an incremental methodic pattern. Silver's price direction typically follows gold, but its spot price can swing wildly and erraticly, owning up to its nickname as gold's crazy cousin.
  
  

Watch Geopolitical Events

• The combination of U.S. dollar weakness, low interest rates and the threat of rising inflation has created an ideal environment for rising precious metals prices. Not to mention rising demand for gold in other countries like China and India. Gold is an internationally traded commodity and its prices rise and fall due to events occurring in world markets. As a bullion trader, watch for economic and political shifts in the U.S. and world economies so you will know when certain changes may reverse the trend in precious metals prices.
  
  

Coins Or Bars

• The most important factor in any bullion trade is the weight of the gold or silver being bought or sold. The next most important factor is whether to buy bullion coins or bars. Gold and silver coins are minted to exacting specifications by governments around the word for investment purposes. Their purity and weight is guaranteed by the governments that produce them. Bars, on the other hand, are produced by commercial refiners. Depending on the size of the bar you are buying or selling it may be necessary to have it assayed for authenticity, which could delay the transaction and increase the cost.