Why the pundits could be mistaken regarding investing in gold and silver and its a great moment to invest

Are we in a gold and silver bubble? The pundits who have come out in the media and Internet recently would have you believe so. Obviously, history does not hold up their position or they simple do not comprehend current events.  Will these precious metals just keep going straight up? That’s not how th markets work and gold and silver will go up and down, but its broad trend will continue to be up

Those that contend that it is not an good time to be investing in gold and silver take the position that the metals have increased in value to a point were that its is not sustainable. They do not take into account that the recent rise was mirrorer by a comparable drop in the US dollar which means that gold ans silver are acting as they should be as protectors of purchasing powerThis week the first shot in war by countries to devalue their currency was fired by Japan. Likewise, the Federal Reserve is preparing to reveal quantitative easing part deux These are elegant terms that basically mean that central banks around the world are preparing to print more money to get out of the economic quagmire we have been in for more than two years.  This is the type of situation that gold ans silver are  good investments.  The demand for gold and silver continues to increase as investors lose confidence in the ability of governments to manage deficit spending and reignite the economy.

A dollar in 1913 when birth was given to the Federal Reserve is valued at a cent today. Gold on the other hand has maintained it’s purchasing power. It is almost definite with current policy today’s dollar will be worth significantly less in ten years, whereas gold and silver should continue to do well..

Investors have options, you can park you wealth in cash an pray that the unrelenting money printing finally ends. Purchase government or corporate bonds, which derive their value from the good faith of the issuer and we have see many cases where that is not worth much. These bonds return after inflation are negative since the interest rates are so low. Purchasing stocks is another option if you like riding roller coasters and are aware that your wealth can vanish overnight  Stocks are simply pieces of paper that get their value from the fact that someone is willing to pay you a certain amount for your shares. They have no intrinsic value and someone can pay you 90% less tomorrow, if that is what the perceived value is.  You may receive a small dividend for holding the paper, but in most case it very little.

Finally, you can seek safety by investing in gold and silver They have been always regarded a storage of value and are tangible and maintain purchasing power. The participants of the gold and silver markets have been voting their votes in favor of these precious metals

Related Gold Bond Articles