Investing In Gold And Silver For Capital Preservation And Appreciation

The Rising Price Of Gold

Is it likely that we are in a gold and silver bubble? There are many so called experts who have come out recently to espouse this view It appears that the experts are not concerned with present events or what history is telling them. Will these precious metals just keep going straight up? Certainly not, it will follow it natural course of moving higher and retracing before moving higher again.


Is it likely that we are in a gold and silver bubble? There are many so called experts who have come out recently to espouse this view It appears that the experts are not concerned with present events or what history is telling them. Will these precious metals just keep going straight up? Certainly not, it will follow it natural course of moving higher and retracing before moving higher again.

Those that contend that it is not an good time to be investing in gold and silver take the posture that the metals have increased in value to a point were that its is not sustainable. 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 exactly 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. In the United States arrangements are under way for quantitative easing two 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 This is the type of circumstances that gold ans silver are sound investments. 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 birth was given to the Federal Reserve is valued at a cent today. On the other hand gold has been able to keep its value. In another ten years it almost certain that the dollar will be worth less and gold will continue to shine as it has always done.

Investors have alternative to protect their wealth, you can leave in cash and trust that the current spending spree by the government and relentless money printing 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. 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 or tangible value and if the market decides from the day to the next that its worth 90% less, then you lost the majority of your money You may receive a small dividend for holding the paper, but in most case it very little.

Lastly, you can sleep soundly by investing in gold and silver. They have been always considered 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.