Investing In Gold And Silver For Capital Preservation And Appreciation

Why Should You Invest In Precious Metals

Why should you invest in precious metals? The reasons are too numerous to be all inclusive. The best reason is that due of current economic and world events its the only place park your money. Instability has become the common theme and we are told to believe that the situation is getting better, but the preponderance of evidence says otherwise.



Why invest in precious Metals?

Why should you invest in precious metals? The reasons are too numerous to be all inclusive. The best reason is that due of current economic and world events its the only place park your money. Instability has become the common theme and we are told to believe that the situation is getting better, but the preponderance of evidence says otherwise. These days to invest in the stock market you need nerves of steel and a supply of antacid medicine. The past decade the return for stocks has been zero percent that is if you were not fortunate enough to invest in the Nasdaq in 2000, which has not recouped 50% of its value in March 2000. In reality the returns for stock during the past decade was negative when you factor in the effects of inflation. This was during a ten-year period when corporate profits and real estate was booming. Now, that the world economy is faltering and both the real estate market and corporate profits are deceleration, stocks are not asset class to invest in.

Gold on the other hand has quadrupled in price since 2000 as investor realize that the precious metal because they realize it is represents value. On a historical perspective when adjusted for inflation gold is still undervalued. Investors are now purchasing more gold as both as an investment and hedge in uncertain times. The trend is evident, as nations such as China and India have made large purchases recently to protect their wealth. Gold is a depleting asset and limited in supply, mining production and new finds have been decreasing putting/exerting greater pressure on the price of the metal.

The trends in gold are evident/clear and with each passing day as economic uncertainty increases more and more investors are flocking to gold to both invest and protect their wealth.