Category: Investment

Gold vs. Silver: Where To Invest Your Money

Gold seems to topple anything it’s pitted against. Being the third most important currency in the world today, what exactly is silver up against?

The price of gold suddenly increased since September 2005 from just $450 per ounce, this went as high as $1,875 per ounce come 2011. Currently, trading value of gold is now playing at around $1,650 – and that is a large jump from the stats in 2005. Most investors keep a watch on the market trends primarily on gold, crude oil, Dow, and S&P 500.

Gold has now arrived at mainstream as its value become humongous over the years. In the past, gold value has only been eyed by insurance companies, central banks, and gold miners but it has now reached Microsoft and IBM. During the final crisis that transpired from 2007 – 2009, investors jumped into gold investments as it is considered a safe investment. Any investor can now invest in gold with the use of exchange traded funds (ETFs)

Here are the key differences and similarities with Gold and Silver as investments:

  • Volatile pricing. The yearly gold supply is at 120 million ounces while the silver supply is almost 1 billion ounces. The silver market then is approximately 8 times much bigger as compared to gold. However, the low price of silver makes its value much lower as compared to that of gold. Following the current market prices, the annual gold supply is now 9 times bigger as compared to silver.
  • Hard Assets. Both silver and gold are tangible assets with intrinsic value that you can hold with your hand. This is also something that can’t be hacked unlike cryptocurrencies and the like.
  • Good as Cash. Yes, both silver and gold are treated just like money. Silver though has been used more often in coinage in comparison to gold.
  • Confidential and Private Properties. Your investments are made private and confidential. There is however an IRS requirement with tax equivalent when you sell gold or silver for profit.
  • Industrial Use. Silver has a higher industrial use at 56% as compared to just 12% of gold. As such, silver is dubbed to be an indispensable metal because life and technology could not possibly exist without it. Gold, on the other hand, has limited uses for jewelry as well as dental and medical equipment.

Silver definitely holds the competitive advantage against gold as far as pricing and industrial use is in focus. You get just the same benefits of gold in silver at a fraction of a cost. Silver is considered affordable for an ordinary investor. Being indispensable, silver certainly is high in demand in many industries considering that it is reflective and electronically as well as thermally conductive which is used in practically anything.

Gold and silver are highly volatile which is why investing in these elements is for those who know when the timing is right for investing in each one. The key is to trade for long term. There is a reasonable level of fear with investing in gold and silver due to the swerving prices but still owning silver and gold can be a hedge to beat inflation and keep your finances afloat especially in dire economic times. Which of these two metals are worth the investment, it really depends on your investment objectives and uses. It also depends on what you can afford to lose or gain. Silver, dubbed as the poor man’s gold is an affordable investment while gold is pricey yet high-income generating. Define your investment goals and diversify. Between silver and gold, which one can turn your investments around to your advantage? – You decide.

Places To Invest Your Money In Canada

Ask any real estate broker, you will never go wrong with property investments. Given a very volatile and uncertain market, real estate would definitely provide that much-needed balance and would beef up your investments strategy.

You should have a well-diversified portfolio that includes hard assets or real estate properties. It is important to note that when selecting investment instruments, you have to spread your risks and not put all your eggs in one basket. Brokers would often say that owning a prized real estate property is like having a blue chip stock which won’t necessarily make you a millionaire overnight but will perform well over the years and can yield sizeable revenue.

It is important to have a large portion your overall net tied up to a real estate property. There are different ways to invest in real estate property which includes real estate income trusts, real estate limited partnerships, and secondary properties. When investing, no one type of asset should dominate more than 50% of your investment portfolio. It should be a mixed investment depending mainly on your risk tolerance. Investment portfolios differ from one person to another.

There was a time that condo sales in Toronto fell to 18% one year after another. At that point, people were asking whether purchasing a real estate property is actually feasible in Canada. People would usually look at their home as an investment. Your primary residence could be an investment but not if you are not making money out of it. There are different options when acquiring property; you can buy secondary real estate properties or a vacation home. You can develop real estate properties for rental purposes or you can build or buy and sell houses – these are the investments right there.

Here are the top places to invest your money in Canada:

  • Milton. This is referred to as The Fastest Growing City in Canada with population overpowering infrastructure and amenities like schools, hospitals, and the like. There is a rise in residential development and population growth plus a decline in the vacancy rate which puts Milton on top of the list. The population is also expected to double in the next couple of years.
  • Brampton. This is one of the contenders in the Top 10 in Vacancy Rates and one of the popular places that anyone should consider investing in this year. With the increase in population and growth in career and employment, Brampton fell by a few percent in 2015.
  • Barrie. This has been designated as the Urban Growth Centre as the city reaps benefits from the economic diversification, improvements in infrastructure and transportation, and employment growth.

Real estate thrives in leverage as real estate prices grow over the years and therefore increase in value. However, when the prices go up, fewer individuals will be able to afford it and thus, the profit will stop flowing in.

Checking the trends and values in your area will help you come up with smart real estate investments. You should also look at other factors that can affect or impact the prices like GDP growth, employment growth, and economic growth which will determine real estate pricing. With real estate investment, you should never settle for cheap, always think about long-term demand and development.

What Can You Buy With Bitcoin In Canada?

Bitcoins used to be a digital currency for purchasing good and services online but it has now treaded another familiar route in Canada.

Canada is now referred to as the Bitcoin ATM Capital of the World – and that’s not surprising at all. It’s on-point.

In addition to the Bitcoin ATMs, Bitcoin vouchers are also bow being used for making purchases in retail stores or anywhere accepted. Bitcoin ATMs were installed in Ottawa and Toronto which allows people to exchange fiat money for bitcoins. The first every bitcoin ATM was installed three months earlier in Vancouver.

The King of Cryptocurrency Reigns

Following these installations, the demand for the king of cryptocurrency has plummeted in the succeeding months. The price of bitcoin quadrupled from $250 to about $1000 per coin in just a span of weeks.

Bitcoin, in itself, is said to have NO value. There is no intrinsic value so-to-speak in a cryptocurrency that is now worth $900 per coin. However, the use of bitcoin has created advancements in the payment or financial spectrum which are able to meet monetary needs and requirements and thus attracted more investors in the process. This popularity gave bitcoin its intrinsic value by means of speculation.

BitAccess – Voucher For Bitcoins

Will Wheeler, analyst of BitAccess, announced that this new program is in support of their company missions that aims to provide more people in Canada access to bitcoins which covers 6 million unbanked Canadians and around 23 million Canadians in the rural areas.

BitAccess has recently launched a bitcoin purchasing service that is available to over 6,000 physical stores in and around Canada. With the use of a Flexepin bitcoin voucher, people can buy bitcoins in accredited physical stores nationwide using their cash or debit cards. The process is similar to purchasing a gift card as it can be bought readily from the store cashier.

The voucher is available in receipt form which can be redeemed to the cash equivalent of a bitcoin. The process of voucher redemption is very fast and would usually take just around 60 seconds. The vouchers are available in the following denominations – $10, $20, $50, $100, and $250.

The popularity of BitAccess soared not just in Canada but in different parts of the world. This innovation has definitely set the bar high for the rest who wanted to recreate this project in their countries or cities. BitAccess has recently been feature in Entrepreneur magazine and in major tech websites such as Motherboard and TechCrunch.

With bitcoins, you can purchase basically anything that you can buy with Canadian dollars (CAD) such as for grocery shopping, dining out in a restaurant, or getting your nails trimmed, watching a movie, paying for bills, and the like.

The BitAccess team headed by CEO Mode Adham looks at the ATM and cash services as competition. The excitement is growing as to the potential of the new cryptocurrency industry in Canada; specifically making bitcoin purchases. Right now, they are looking forward to the possibilities in the future and how much of that industry they could disrupt and regroup.

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