Essential Tips For Investing In Gold And Silver

Essential Tips For Investing In Gold And Silver

SCOOPEMPIRE Business provides a Guide for MENA Investors in its Essential Tips for Investing in Gold and Silver. Or is it another way to providing a safe door out of the increasingly Fossil Fuels divestment world trends? Let us find out.

A Guide For MENA Investors: Essential Tips For Investing In Gold And Silver

By Guest Contributor 

Precious metals such as gold and silver are fascinating investment asset classes, which also offer the benefits of stability and predictability to traders across the globe.

For example, despite being separated by a number of key differences, both gold and silver see demand and price points soar during specific times, in which each asset is heavily influenced by an array of macroeconomic factors.

Interestingly, precious metals are particularly important for MENA populations, both culturally and from a wider investment perspective. However, when is the best time to invest in gold and silver? We’ll explore this question further below!

Via Heimerle+Meule

The Importance of Precious Metals Amongst MENA Populations

While China and India remain the dominant buyers of gold and precious metals in the global marketplace, there’s no doubt that certain MENA countries are becoming increasingly influential within this space.

To provide some context, China and India acquired more than 364 tonnes of gold jewellery alone during the first quarter of 2015, with this number having increased incrementally through 2019.

However, while the US trails behind in third place in terms of precious metal procurement and consumption, MENA nations are beginning to threaten the established status quo within the industry.

Make no mistake; Saudi Arabia and the UAE are now established as the fourth and fifth biggest buyers of gold in the world, with this trend increasingly driven by cultural elements and age-old traditions (particularly those pertaining to religious celebrations and weddings).

The Economic Case for Gold and the Best Time to Invest

In the MENA region, gold purchases are also commonly completed as an investment, particularly given the increasingly uncertain economic climate that persists across the globe.

The world has seen two significant economic crises during the last decade. For example, in the form of the great recession, and the financial fallout from the coronavirus pandemic.

As a result, gold has never been more fashionable and relevant as an alternative investment, thanks to its reputation as a secure store of wealth and viable hedge against uncertainty, and the inflationary pressures of fiat currencies.

While silver boasts similar qualities, it boasts far greater industrial usage, and is far more likely to increase in value as countries move out of a recession. This point of difference underpins the so-called “gold-silver ratio,” which encourages investors to hedge their bets in both metals, by taking a short position in either gold or silver (depending on live prices and the prevailing economic climate).

As a general rule, however, it’s best to purchase gold during times of economic tumult, whilst transitioning to silver as the global economy and demand begins to improve.

Via AARP

Where to Trade Gold and Silver

There are also plenty of options in terms of how to trade gold or silver, aside from physical procurement and leveraging these precious metals as tangible stores of wealth.

You can also trade precious metals through derivative products such as contracts-for-difference (CFDs), which are ideal from a practical perspective, as physical gold trading is incredibly inefficient and non-cost-effective.

Through CFDs, you can also gain flexibility by profiting through gold and silver price speculation, as you can simply trade price movements and fluctuations that occur on a daily basis.

This is often particularly beneficial during times of economic flux, as countries begin to move out of a recession, and real-time prices remain especially vulnerable to the macroeconomic climate.

WE SAID THIS: Invest wisely!

A fossil fuel divestment ‘how-to’

A fossil fuel divestment ‘how-to’

Here is a story told by Professor Paul Bierman about divestment from fossil fuel how-to get rid of this earth’s malefic resource of easiness. In short, it is about salvaging what remains of the earth’s goodness and secure an unaltered future for the coming generations.

For over a century, burning fossil fuels has helped propel our cars, power our businesses, and keep the lights on in our homes. Even today, oil, coal, and gas provide about a lot of our energy needs.

Divesting is the act of removing any financing of the fossil fuel industry, increasingly found to be an unethical industrial human activity. The fossil fuel divestment movement that started gaining attraction in 2010 could not have begun if no palliative industry can procure all that necessary energy. 

In recent years, the divest movement from fossil fuels has grown to a multi-trillion dollar movement involving numerous institutions worldwide. And thanks to stricter policies to address the climate crisis, fossil fuels are gradually becoming yesterday’s energy source. They could soon be considered, were it not for the Big Oils and their lobbies, as a nasty, dirty and nuisance liable to damage the planet’s soils, air and above all, its climate. Luckily, Fossil Fuel complicity being no longer hidden, divestment is gradually brought about and sustained by the likes of the professor here.

A fossil fuel divestment ‘how-to’

As a climate scientist, I find fossil fuel divestment to be critical low-hanging fruit, even if its effects are largely symbolic. But it never ceases to amaze me how we struggle to get it done.

At the University of Vermont (UVM) where I’ve taught since 1993, the divestment movement lasted a decade and got nowhere. Then — in less than a year — it happened. A growing student movement did the work. Emboldened by Mike Mann’s visit to campus and Greta Thunberg’s youth activism, students ramped up pressure on the University administration (which initially pushed back with standard lines about fiduciary responsibility). Some savvy students even noticed — buried deep on UVM’s web site — that the Green Fund, a small piece of our endowment, yielded better growth than the rest of UVM’s investment portfolio. Even that reasoned argument fell flat until public action by students and faculty allies threatened UVM’s well-manicured image as the “Environmental University.” In our image, and in the image of Williams College, lies the power for change.

When more than 100 students arrived with signs and speakers at the UVM fall Board of Trustees public comment period (scheduled at 8:30 a.m. on Saturday, October 26, 2019), the dialogue began to change. At the winter meeting several months later, I, along with students, appealed to the board to divest and diversify (to me, these are tightly linked). Hundreds of students cheered under the watchful eyes of several armed UVM police and through rope barricades isolating the board. Still nothing changed. But TV cameras rolled.

When the same students planned to disrupt admitted students’ day visits a month later (we need to convince students to attend UVM since their tuition pays our salaries), decision makers noticed. I was Nordic skiing at dusk when my cell phone rang. It was the provost. She asked, Would I stop the student “activists” from protesting tomorrow? I said no. But I advised that she call and speak to them directly — hear their voices. The students had an audience and the log jam began to break. The board got a new chair. A committee was formed. By summer, the president celebrated “our” decision to divest because it demonstrated UVM’s true environmental mettle. 

Our actions may have had a price. In December, UVM proposed to terminate the geology department — one of the big players in climate-change research on campus. Soon after, I was told by a dean that some in the administration had labeled me a “troublemaker.” A few weeks later, the emails and phone calls began. I’ve now heard from staff, faculty, a dean, and a large donor that some of UVM’s leadership team doesn’t believe climate change is real. So far, UVM has declined Freedom of Information Act requests from reporters to release relevant emails. Change does not come easily and without a cost.

What is clear to me now is that concerted student action, in the public square and supported by faculty (and alums!), is key to making change. Divestment means challenging established economic and management power structures; it’s not easy, and it carries risks. But it’s the right thing to do. In the words of the late John Lewis, “Never, ever be afraid to make some noise and get in good trouble, necessary trouble.” The climate crisis mandates we make some noise and get in some good trouble. Every one of us.

Paul Bierman ’85 is a Professor of Geology at the University of Vermont. He lives in Burlington, VT.