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Why Trade Metals
Gold
A Question of Value Investing
Many experts believe that the stock markets, and the mutual funds that invest in them, are overvalued and potentially at risk for correction similar to the corrections seen in 1929, 1987 and 2000. Every stock market investor should consider balancing his market risk with precious metals. Historically, gold has been a premier and desirable financial asset in times of market turmoil. Precious metals are one of the only financial asset classes in an investment portfolio that are not simultaneously someone else's liability.
The Prospect of Inflation
In an attempt to avoid a recession, the U.S. government has been forced to inflate the U.S. economy with an easy monetary policy and increased spending. Precious metals can offer inflation protection and profit opportunity, as evidenced by the skyrocketing precious metal prices in the late 1970s when inflation reached double-digit rates.
Government Debt May Also Spur Inflation
Despite political jawboning, the US national debt has continued to snowball and now stands at $7 trillion-plus. Interest payments on this debt now drain the budget of billions of dollars each month. If history provides any guidance, this escalating debt could lead to a new wave of inflation, particularly if the government prints money to pay it off.
Wealth Protection in the 21st Century
Many investors are growing increasingly nervous about what they see in the world today: Increasing levels of domestic and international strife, war and terrorism; the declining value of the U.S. Dollar eating away at their nest eggs and their futures; stock, bond and property markets that appear chronically overvalued; and the very real possibilities of inflation, deflation, recession, depression and tougher times ahead. In such an uncertain environment, it is natural—and highly appropriate—to seek out strategic investment alternatives in order to 1) preserve one's wealth; and, ideally, to 2) increase one's wealth. For thousands of years, in good times and bad, precious metals have offered investors a solid, long-term and tangible way to hold and protect wealth with relative safety. Unlike paper investments (like stocks and bonds) that can and have become worthless overnight, precious metals have true intrinsic value...and, hence, will always be valuable. What's more, in recent years, precious metals have also proven to be outstanding short-term trading vehicles, offering trader’s periods of outstanding profit potential as metals prices fluctuate, sometimes dramatically, on world markets.
Silver
The extraordinarily bullish fundamentals of the Silver Market suggest, at current prices, that investing in silver could offer investors one of the single best long-term investments today. It is no secret that both gold and silver are recognized as a store of value. What is not so well known is that while gold has demonstrated a solid trend of price appreciation since 2001, more than doubling in price, the price of silver has recently outperformed that of gold. In fact, between July 1, 2003 and November 30, 2007, the price of gold increased approximately 84%, while the price of silver increased more than 200%. In addition, there is a compelling argument for silver investing because the economic and monetary fundamentals in place today are even more bullish than the conditions of the 1970s when the silver price exceeded $50 per ounce. Yet today's market prices, at below the $20 level, are a mere fraction of levels projected by silver industry experts for the future.
Worldwide market demand for silver is growing, while supplies of silver are quickly disappearing. New high-tech uses for silver will further strain already-tight supplies in the future. World demand for silver now exceeds annual production and has every year since 1990, depleting above-ground stockpiles of silver. The U.S. government, once the largest stockpile of silver on the planet, dumped billions and billions of ounces of silver onto the world market over the years, resulting in depressed silver prices. Today, that government silver hoard is gone, and now the U.S. government is a buyer of silver at prevailing world silver prices.
For these reasons and many more, the silver market certainly appears to represent an outstanding investing opportunity.
Why Trade Metals
Gold
A Question of Value Investing
Many experts believe that the stock markets, and the mutual funds that invest in them, are overvalued and potentially at risk for correction similar to the corrections seen in 1929, 1987 and 2000. Every stock market investor should consider balancing his market risk with precious metals. Historically, gold has been a premier and desirable financial asset in times of market turmoil. Precious metals are one of the only financial asset classes in an investment portfolio that are not simultaneously someone else's liability.
The Prospect of Inflation
In an attempt to avoid a recession, the U.S. government has been forced to inflate the U.S. economy with an easy monetary policy and increased spending. Precious metals can offer inflation protection and profit opportunity, as evidenced by the skyrocketing precious metal prices in the late 1970s when inflation reached double-digit rates.
Government Debt May Also Spur Inflation
Despite political jawboning, the US national debt has continued to snowball and now stands at $7 trillion-plus. Interest payments on this debt now drain the budget of billions of dollars each month. If history provides any guidance, this escalating debt could lead to a new wave of inflation, particularly if the government prints money to pay it off.
Wealth Protection in the 21st Century
Many investors are growing increasingly nervous about what they see in the world today: Increasing levels of domestic and international strife, war and terrorism; the declining value of the U.S. Dollar eating away at their nest eggs and their futures; stock, bond and property markets that appear chronically overvalued; and the very real possibilities of inflation, deflation, recession, depression and tougher times ahead. In such an uncertain environment, it is natural—and highly appropriate—to seek out strategic investment alternatives in order to 1) preserve one's wealth; and, ideally, to 2) increase one's wealth. For thousands of years, in good times and bad, precious metals have offered investors a solid, long-term and tangible way to hold and protect wealth with relative safety. Unlike paper investments (like stocks and bonds) that can and have become worthless overnight, precious metals have true intrinsic value...and, hence, will always be valuable. What's more, in recent years, precious metals have also proven to be outstanding short-term trading vehicles, offering trader’s periods of outstanding profit potential as metals prices fluctuate, sometimes dramatically, on world markets.
Silver
The extraordinarily bullish fundamentals of the Silver Market suggest, at current prices, that investing in silver could offer investors one of the single best long-term investments today. It is no secret that both gold and silver are recognized as a store of value. What is not so well known is that while gold has demonstrated a solid trend of price appreciation since 2001, more than doubling in price, the price of silver has recently outperformed that of gold. In fact, between July 1, 2003 and November 30, 2007, the price of gold increased approximately 84%, while the price of silver increased more than 200%. In addition, there is a compelling argument for silver investing because the economic and monetary fundamentals in place today are even more bullish than the conditions of the 1970s when the silver price exceeded $50 per ounce. Yet today's market prices, at below the $20 level, are a mere fraction of levels projected by silver industry experts for the future.
Worldwide market demand for silver is growing, while supplies of silver are quickly disappearing. New high-tech uses for silver will further strain already-tight supplies in the future. World demand for silver now exceeds annual production and has every year since 1990, depleting above-ground stockpiles of silver. The U.S. government, once the largest stockpile of silver on the planet, dumped billions and billions of ounces of silver onto the world market over the years, resulting in depressed silver prices. Today, that government silver hoard is gone, and now the U.S. government is a buyer of silver at prevailing world silver prices.
For these reasons and many more, the silver market certainly appears to represent an outstanding investing opportunity.
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