Frequently Asked Questions (FAQs)

FAQs on trading with Kostbar Trading

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• Why Gold?
  • Gold has maintained its worth over centuries, standing as a reliable store of value while fiat currencies have eroded in purchasing power. Despite short-term fluctuations, gold’s long-term performance proves its resilience. It holds a negative correlation with the US Dollar, often acting as a leading indicator for currency trends. When the value of paper currencies diminishes, gold typically holds or increases its value.
  • Independent of Political Control:

    Gold can’t be easily controlled or overproduced by governments, unlike paper money.

  • Long-Term Value:

    Gold’s price may dip, but it grows steadily, making it a safe choice in tough times.

  • Supply & Demand:

    Gold is scarce and hard to produce, while more people and banks want it.

  • Institutional Interest:

    Large funds are starting to invest in gold, which could push its price higher.

• Why Physical Bullion?
  • Gold Accountability:

    Physical bullion ensures true ownership, unlike paper ETFs that may not guarantee delivery or actual gold backing.

  • Minimized Risk:

    Holding physical bullion eliminates counterparty risk tied to paper substitutes, securing your investment.

  • Professional Asset Management:

    Physical bullion’s value is inherent, relying on the asset itself, not complex market strategies.

  • Liquidity and Tradeability:

    Physical bullion is highly liquid, easily traded worldwide, making it a flexible investment.

  • True Ownership:

    Every transaction includes title transfer and secure, allocated storage, ensuring your bullion is yours and unleveraged.

• Why Silver?
  • Historic Monetary Metal:

    Silver has been a trusted form of money for centuries, proving its worth as a reliable store of wealth.

  • Undervalued Potential:

    Silver is currently much cheaper than gold compared to historical ratios, offering great growth potential for investors.

  • Industrial Demand:

    Silver’s essential role in electronics, solar panels, and medical devices boosts its value due to increasing industrial needs.

  • COMEX Short Positions:

    Big banks’ large bets against silver prices may lead to a price surge when they need to buy back.

  • Supply Constraints:

    Supply Constraints: Silver’s limited and unpredictable supply, paired with rising global demand, could push prices higher.

• Why Platinum?
  • Store of Value During Economic Uncertainty:

    Platinum serves as a reliable hedge like gold, gaining value during economic instability due to its scarce supply.

  • Rarity & Source Dependency:

    Platinum’s limited supply, mainly from Russia and South Africa, makes it rarer and often pricier than gold.

  • Industrial Utility:

    Its durability and resistance make platinum essential in cars, jewelry, oil refining, and medical tech, driving demand.

  • COMEX Short Positions:

    Big banks’ large bets against silver prices may lead to a price surge when they need to buy back.

  • Inflation Indicator:

    Platinum tracks inflation with minimal government control, making it a strong shield against currency devaluation.