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Why The Pundits May Be Wrong About Investing In Gold And Silver And Its A Opportune Time To Invest

Why The Pundits May Be Wrong About Investing In Gold And
Silver And Its A Opportune Time To Invest

By Mike Emerson

Are we in a gold and silver bubble? There are many so called experts who have come out lately to espouse this view It appears that the experts are not concerned with existing events or what history is telling them. Will the prices of gold and silver keep going up unremittingly? Obviously not, it will follow it natural course of moving higher and retracing before moving higher again.

Those that espouse this posture merely state that gold and silver have gone a lot They fail to see that the U.S. dollar has been precipitously falling and gold and silver have gone up almost the same percentage. In another words, gold is doing precisely what it is supposed to be doing, protecting your purchasing power caused by currency devaluation.This week the first shot in war by countries to devalue their currency was fired by Japan. The United States is planning for quantitative easing 2. These impressive terms mean nothing more that worldwide they are cranking up the printing presses to fight the debt unwinding and re-start the stagnated economies Under this situation gold and silver are clearly winners and will continue to go up as investor seek shelter in tangible assets. The demand for gold and silver continues to grow as investors lose confidence in the ability of governments to control deficit spending and reignite the economy.

A dollar in 1913 when the Federal Reserve was created is worth a meager penny. Gold on the other hand has kept its purchasing power. In another ten years it almost definite that the dollar will be worth less and gold will continue to shine as it has always done.

There are choices to be made, one of them is that you can decide to leave your wealth in cash and trust that the money printing ends well and the government learns fiscal accountability An investor can also purchase government or corporate bond which are essentially backed by the good faith of the issuer and from recent experience we know that does not always ends well. Bonds real returns are negative after inflation since the interest rates are so low Buying stocks is another option if you like riding roller coasters and are aware that your wealth can disappear overnight Stock are mere pieces of paper that are given value by the fact that someone is willing to pay a certain price for the shares They have no intrinsic value and someone can pay you 90% less tomorrow, if that is what the perceived value is. As a consolation prize you may get a very small dividend that does nothing to reduce the risk.


Lastly, you can sleep soundly by investing in gold and silver. They have been always regarded a storage of value and are tangible and maintain purchasing power. I think that the decision is a no brainer and the participants of the gold markets have been casting their votes.