Investing In Gold And Silver For Capital Preservation And Appreciation

Precious Metal Evolution At Present

Both gold and silver rates had witnessed constant increases last year, in the context of the global financial crisis affecting major currencies, due to the national debts burdening major developed countries. As such, gold rates appreciated by 30%, while silver ones by an incredible 83%. And their current developments are even more encouraging in China, the keenest consumer of these precious metals globally. In January and February this year, the Chinese were lining up every day in order to make gold jewelry purchases, and the retail investors were doing the same in order to get sometimes kilos of gold at a time. Jewelry departments in large shopping malls there foresee a 10% increase in the gold price in 2011, and gold investors are expected to acquire even 10 kilos per person in the near future.


Both gold and silver rates had witnessed constant increases last year, in the context of the global financial crisis affecting major currencies, due to the national debts burdening major developed countries. As such, gold rates appreciated by 30%, while silver ones by an incredible 83%. And their current developments are even more encouraging in China, the keenest consumer of these precious metals globally. In January and February this year, the Chinese were lining up every day in order to make gold jewelry purchases, and the retail investors were doing the same in order to get sometimes kilos of gold at a time. Jewelry departments in large shopping malls there foresee a 10% increase in the gold price in 2011, and gold investors are expected to acquire even 10 kilos per person in the near future.

No wonder both that the domestic market is no longer able to answer this demand and, as such, China is importing gold from any foreign banks or other entities that have tons to dispose of. The Chinese banks are heavily selling gold in their turn to retail investors. The most important bank sold some 7 tons of gold in the first month of this year (while it sold 15 in 2010) and 13 tons of silver (while it sold 33 in 2010). Moreover, it promotes the option for retail investors to buy gold bars that they may sell later through the bank for real-time gold prices. Such physical gold investment products might cause a rise of circa 10%-15% in gold retail investment this year.

The bank also offers its clients the possibility of having gold-price-linked term deposits, issuing only in 2010 deposits amounting to 1 billion Yuan, that it sold nevertheless just in a few days this January.

The provable yearly appreciation of gold by 17% over the last nine years has made numerous retail investors worldwide to resort to gold as a safe asset, stabilizing their portfolios. As such, in the United States, for example, the demand is so high that some providers of gold bullion possess assets of more than one billion dollars on behalf of their gold investing clients.

It’s as known a fact that new gold discoveries have become rarer, the quantity of gold discovered falling sharply from circa 90 million ounces in 1997 to circa 10 million ounces in 2008. Therefore, it is to be expected that the frantic gold demand in China and across the world will increase even more the price of gold in the foreseeable future.

An option to invest in gold is by purchasing a gold bar once; you will see how many dollars this will save you.

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