The Gold-to-Silver Ratio: Why is it important?

For investors in precious metals the gold-to-silver ratio is one of the most important indicators available and can help them decide whether it is the right time to buy or sell their gold or silver bullion. The ratio represents the amount of silver needed to buy an ounce of gold, and it can be calculated simply by dividing the price of gold by the price of silver. 

If you’re making bullion investments or trading in gold, silver and other precious metals, you can use the gold-to-silver ratio as a signal to prompt you to buy or sell. The consensus of investors and experts in this area is that a high ratio favours silver, whereas a low ratio tends to favour gold.  Experienced investors who closely follow the movement of the gold-to-silver ratio regularly use this rule of thumb, trading their silver for gold and vice versa when the ratio rises or drops. 

It is important to remember that the gold-to-silver ratio is not a precise guide to buying or selling bullion, but it is an important and useful measure. Those new to gold and silver trading may find the ratio difficult to follow initially, as it can fluctuate dramatically over any given time period, but with a little experience, investors can learn to read the signals hidden in the rising and falling of the gold-to-silver ratio and profit from the information.

At the beginning of the last century, the ratio was fairly steady and hovered at around 16, due to the fact that many nations were using currencies backed by gold or silver. But as the twentieth century drew on, the ratio began to rise and throughout the last hundred years, the ratio has averaged in the 47-50 range, though it has fluctuated significantly. 

Some experts have predicted that the gold-to-silver ratio will eventually return to its historical pre-1900 level of around 16:1, but this is far from certain, as it would require a significant rise in the price of silver. What is certain is that investors can profit from using the gold-to-silver ratio. Analysing the rise and fall of the ratio over time can reveal useful clues and underlying trends that can inform a successful buying or selling strategy.

For those trading in gold and silver bullion, secure and convenient storage for their physical investments is also an important consideration. Bullion for Less offer two state-of-the-art safe deposit locations in the South Wales region, enabling investors to purchase and store their physical bullion investments under one roof. With Bullion for Less, your gold and silver bullion investments have never been safer or more convenient.

Gold bars an attractive post-Brexit proposition

Now is the time to invest in gold bars! In the wake of the Brexit referendum and the vote to trigger Article 50, as well as the continuing fall in the value of the pound and the rising national debt, UK investors are turning to gold and the demand for bullion is surging.

Demand for gold bullion increased throughout 2016 and the early months of 2017 as investors sought ways to hedge against the growing uncertainty of the economic and political situation. According to reports in the Wall Street Journal, demand for gold bars rose by 39% in 2016 and has continued to rise this year. 

The triggering of Article 50 at the end of March provided another warning about the difficult and uncertain political waters into which both the UK and the European Union are sailing.

The negotiations over the UK’s exit from the EU are likely to be protracted and divisive, and the implications for UK business and for a UK economy that is over £1.84 trillion in debt are worrying. The value of sterling fluctuated wildly this spring and the Euro is also likely to be subject to dramatic changes in value, as Brexit also has implications for the EU. The Union is less cohesive now than at any time since its inception and the economies of several member nations, including those of Ireland, Italy and Greece, are vulnerable. 

Beyond Europe, the political chaos in the United States is also driving diversification into gold bullion. After an initial burst of optimism following the inauguration of President Trump, US markets and stock prices have been behaving skittishly as concern about Trump’s legitimacy and inability to pass his political agenda have knocked confidence. The failure to repeal the Affordable Care Act was a particularly telling blow to investors' early faith in Trump. 

In the light of these political and economic uncertainties, the flight to gold makes sense and is a phenomenon that has been seen many times before. During the global financial crisis that began in 2007, global investment in gold bars rose from 237.7 to 1246.9 metric tons in the space of just four years, as investors sought security in bullion. Given the dramatic scale of the political and economic upheavals threatened by Brexit, demand for gold in the UK is likely to remain strong, and anyone opting to buy gold bars in the current market is making a sound investment. 

If you are considering an investment in physical gold bars, Bullion for Less can help. We purchase directly from manufacturers and can offer the most competitive prices and unparalleled secure storage for your gold. Visit http://www.bullionforless.com to find out more.

How to Become a Bullion Investor

For more than five thousand years’ gold has been in demand due to its rarity, its beauty and its physical properties. Throughout periods of crisis it has consistently held value, with great potential to increase and protect your wealth. Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock is therefore exceptionally safe, and is quoted on all the world’s main stock markets. 

Whilst there are many ways in which you can become an investor in gold, purchasing the physical bullion has one major advantage: it is tangible. If you decide to purchase gold bars or coins they become a “pure asset” to you, and will act as your ultimate insurance in times of economic uncertainty and instability.

If you are considering purchasing physical gold as an investment, finding a reputable dealer is imperative to avoid the possibility of counterfeit gold. Bullion for Less offers bullion direct from the manufacturers and therefore can provide you with the best possible prices, alongside a secure storage facility for your gold. With its unparalleled physical and digital security features you can receive the required assurance that your investment will always be kept safe.

For more information on the investment of bullion with Bullion for Less visit http://www.bullionforless.com

Is Your Home Safe Really That Safe?

Worried about keeping your valuables safe at home? According to figures from the Association of British Insurers (ABI), insurers paid out an average of £8.1m per day in domestic property claims in 2015, of which theft was the third most common type. Furthermore, the value of gold soared by 16% at the start of 2016, inflating the worth of certain items and making them even more desirable in the eyes of criminals.

Figures like these only add to our anxiety about the security of our homes and the possessions we keep inside them.  So it’s no wonder that increasing numbers of us are researching ways to prevent theft of our most treasured items.

Which safe is safest?

One of the first steps you might take is to either consider investing in a home safe or looking for a trusted security box facility like ours.

If you Google ‘home safes’ you are literally bombarded with an abundance of different products that you can buy from a range of companies that offer conflicting information about the safes and how effective they actually are at keeping valuables safe.

For instance, should you go for a fire-resistant box, or a security box, or perhaps a certified safe? Then should you opt for a digital safe, or a traditional lock and key safe? If you are on a budget, perhaps you would opt for a value safe? You can buy a home safe for as little as £20, but exactly what level of protection does this provide? At £20 it’s questionable that there is any genuine security at all!

At a safe deposit facility like ours, while we have different sizes of boxes, essentially all of them are equipped with the same physical and digital security features including being placed in an anti-ballistic, fire proof vault, surrounded by multiple security layers, CCTV monitored, protected by seismic sensors as well as by Grade 4 alarm systems. This ensures that our facility is essentially an impenetrable fortress.

Expert knowledge and experience…

Many home safe retailers are online sellers that do not necessarily have the expert knowledge and experience that can only obtained from working within the security industry. The danger of not having done your research is that you may end up with nothing more than a thin metal box that can be easily stolen and broken into if a burglar were to lay their hands on it.

We know our industry at CSD and the best possible physical and digital security is at the heart of what we do. Did you know, for example, that Cardiff Safe Deposit is the only privately owned safe deposit facility in the country to be accredited with the 'Secured By Design' certification?

How robust is a home safe?

Without the safe actually being bolted to a solid wall or concrete floor, the security of a home safe could actually be deemed worthless. A burglar in fact is more likely to see more opportunity in taking the safe away with them and then attempting to break into it somewhere else. Regardless, the contents will still be removed from the property.

Even with the box bolted to a concrete floor or masonry wall, burglars have access to hydraulic tools, lock pick guns and metal detectors which can easily and quickly free the home safe from the bolts.

Having a rented box on a site such as ours takes all this apprehension away, as well as removing the confusion over what type of box to have in your home. 

While we don’t want to deter people entirely from storing their valuables at home, our message is just to be cautious and do your research first if you do decide to purchase a home safe. The final word is do not underestimate the peace of mind and assurance that renting a safe deposit box at a site like ours can have. Our boxes are affordable and come in a range of different sizes with up to £50,000 complimentary Insurance and optional insurance up to £500,000. Find out more about our safe deposit box services here​​​​​​​.