GoldSilverValuation Frequently Asked Questions

About Valuations

What is a valuation?

A "valuation" is what we calculate, based on data and assumptions from a variety of methods, the inherent value of gold or silver to be, at this point in time. A valuation of $X for a metal is like saying if everything was right with the world, and these simple models and assumptions hold, it is reasonable to believe that that metal could purchase $X worth of goods or services. Some also call valuations of a metal the "fair value" for a metal. A valuation is not necessarily the same thing as a price prediction, which is forecasting the metal reaches a spot price by or at a certain point in time. We are generally not interested in price predictions.

Why are the gold and silver valuations updated infrequently?

We could provide real-time valuation updates, but that would be defeating the purpose of valuations, which are more long-term thinking. Also, the valuations do not change that much to make more frequent updates useful. However, the main reason is that the data that goes into the valuation calculations are updated at different frequencies. Some of the inputs are updated continuously (like spot prices of gold and silver, for example), and others are updated daily, weekly, monthly, every 6 months, or every year. We therefore decided to settle on updating the valuations each month as well as on an irregular basis (for example, if there are interesting economic events).

What about [insert a gold or silver valuation method we do not cover]?

Please send us more information about this gold or silver valuation method and we may add it to our list.

If your valuation for a metal is $X, which happens to be much higher than the spot price, will you buy my metals for $X?

We are not in the business of buying (or selling) metals. But, if we were, we would not be generally interested in buying at premiums.

What about platinum, palladium, or even copper, nickel, or other metal valuations?

We focus on gold and silver valuation, which are the main precious metals. Other precious metals and base metals are important, and we may considering adding them to GoldSilverValuation.com in the future.

Where do you get your data?

All of our data is available from online public sources. We try to provide links to our data when we can, as well as explain what calculations we make from this data.

About Gold and Silver

What is your "elevator pitch" for gold and silver?

Gold and silver are physical, rare, cannot be printed away or hacked, and considered money (in fact, gold and silver are "outside money", i.e. are not the liability of anyone), in many cultures, for thousands of years, are used in many industries, hoarded by central banks and other organizations, and are severely undervalued.

Are gold and silver the best investments?

All investments have pros and cons.

Don't you miss out on stock dividend payments and the magic of compound interest by investing in metals?

First, just because this is a gold and silver valuation site, that doesn't mean gold and silver is our only investment. Second, one can invest in stocks related to gold and silver. Third, companies can decrease dividend payments, including stopping them, as well as have their stock price decrease and even go bankrupt. And last, because physical gold and silver are money, have many uses, are simultaneously rare and in high demand, and have been in virtually all cultures for thousands of years, the compound interest could arrive to the gold and silver investor through the back door of ever-compounding sovereign debts. In other words, there are many gold and silver valuation methods that are functions of debt, population, and scarcity, three things that seem to be increasing exponentially.

About GoldSilverValuation.com

Why do we need your service?

Valuing U.S. Treasuries, bonds, and even stocks, is somewhat simple and mostly reliable. Valuing precious metals, like gold and silver, however, is a much more difficult task. Many sources discussing gold and silver will loudly proclaim "Gold to $X!" and "Silver to $Y!" to sell their latest books or coins/bullion. However, even in cases where there isn't a conflict of interest, they may only give one or two numbers for their valuations, not show their work, or they use the valuations, knowingly or unknowingly, to make bombastic price predictions, thus damaging their credibility and by proxy the credibility of gold and silver as worthwhile investments. At GoldSilverValuation.com we do things differently. There are five main reasons why you should make GoldSilverValuation.com your go-to source for the rational valuation of gold and silver. First, we look at gold and silver valuations gathered (and some created) from many different sources, whether optimistic, pessimistic, or somewhere in the middle. Second, taking individual valuations with a large grain of salt, we tend to report the median of the valuations as "the" valuation at a particular point in time, which is logically and mathematically more defendable. Third, we give links to source data when we can and show the exact calculations behind the numbers. Fourth, we actually like to talk about the assumptions and limitations of the data. Last, and perhaps most importantly, we make the distinction between a valuation and a price prediction very clear. Please note that the owner of GoldSilverValuation.com has over 15 years experience in mathematical statistics and economics, but is merely an amateur investor giving their opinion and providing education and entertainment, not a qualified licensed investment advisor providing advice. Please read our disclaimer below that you'll find on every page.

What is in this for you?

We make the vast majority of our livelihood from full-time careers and investments. We also make a smaller amount from any advertising and affiliate revenue and donations this webpage generates as a service. We also enjoy learning and sharing all that we can about gold and silver as a hobby.

What do you advise I do?

We do not provide personal investment advice and we are not qualified licensed investment advisors. We are amateur investors. All information found here, including any ideas, opinions, views, valuations, predictions, forecasts, commentaries, suggestions, expressed or implied herein, for gold and silver or for anything else, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. We will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. You'll find this disclaimer at the bottom of every page on GoldSilverValuation.com.

Why do you accept fiat donations/isn't fiat bad?

We use fiat money, or currency, whether coins, paper, or electronic blips, for paying medical bills, grocery bills, utilities, education, donating, investing, taxes, and so on. This is not by our design, but it is just the way things currently are in the world.

What about the ads?

GoldSilverValuation.com is proud to be a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. We try to provide links to gold and silver coins and related products.

Do you own any gold or silver?

Yes.

How can I contact you?

You can contact us here with any inquiries.

Disclaimer: We do not provide personal investment advice and we are not qualified licensed investment advisors. We are amateur investors. All information found here, including any ideas, opinions, views, valuations, predictions, forecasts, commentaries, suggestions, expressed or implied herein, for gold and silver or for anything else, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. We will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions.