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Precious Metals Investing Like Gold And Silver!

September 12, 2011 By 11 Comments

If soaring gold prices makes you feel good and you are thinking of cashing in on this trend in 2010, then read this article to know about another investment that can rocket faster than gold in 2010 and give you 3 times more ROI as compared to gold.

Investing in gold right now can be a good decision but this other investment that also luckily happens to be a metal can be three times more profitable. Guess the name of this metal! Yes, silver, you are right!

What’s so special about gold and silver. Gold has been ingrained in the human psychy as the thing of beauty as the ultimate wealth. Throughout human history, people have been hoarding gold. The same phenomenon has not taken hold of different countries. Dollar has become weak due to the recent financial crisis that the world experienced. Countries like China, Russia and India want to hedge their international currency reserves most of them being in US Dollar. So, they want the ultimate currency, “gold.” This way these countries think they would be safe in case of a major Dollar devaluation that might take place in the unforseen future. Silver is also being bought as both gold and silver have been used to mint coins from times immemorial. This trend of buying huge quantities of gold and silver is driving their prices sky high. Remember the time in 19th century when the world was on the gold standard. Countries would keep gold and silver as international reserves. We might be headed back to that time!You never know. No one knows the future. No one could predict the birth of the present currency markets that took place in 1973. No one knows the future of currency markets! Now, gold and silver respond to almost the same fundamentals. When gold prices go up, silver prices will invariably follow.

Silver or the while metal is experiencing many other forces that can force the prices of this white metal to rocket even faster than gold even beyond those driving megatrends the while metal shares with gold.

Silver is widely used in coin minting, electronics, photography, plastics, soldering (joining two metal pipes), computers particularly notebooks and laptops, refregerators and even dishwashers. So, as you can see, the demand for silver is on a much higher level as compared to gold. Without silver, many industries will come to a grinding halt!

What this shows is the supply of silver is even more limited as compared to gold. The best way to profit from investing in this gold and silver rush that is going to happen in 2010 and beyond is to purchase gold and silver calls or trade gold and silver futures.

Now, if you have never traded futures contracts, you might think about learning how to trade futures contracts especially gold and silver futures contracts. This way, you can profit from the volatility in the gold and silver markets. Futures trading is risky no doubt but for those who don’t want to get good training before they start trading futures. What you need is to open a practice account and start paper trading gold and silver futures. This way, you will be in position when the great gold and silver rush starts again1

Now, as I have said earlier, you can also invest in gold and silver mining companies by buying their stocks. This is exactly what many people did in early 1970s when the last boom in the gold and silver markets took place. Many became rich in a few years. The same gold and silver boom is coming in this decade that started a few days back.

In 1970s, silver went from .29 in 1970 to it’s zenith .45 in 1980. This was a percentage gain of 3,733%, something astounding! Many of you might be thinking that 1970s is a great story but now distant memory and just a daydream now. The wealth building power of gold and silver might be beyond us.

Now, I give you the example of Lion Mines. You could purchase it’s share for jut 7 cents in 1976. By early 1980s, it was worth a staggering 0 per share. By just purchasing 4 worth of it’s stocks in 1976, you could have easily made a million in just under four and a half years. History is going to repeat again with silver in the new decade!

Mr. Ahmad Hassam has done Masters from Harvard. Currency markets are even better than the gold markets right now. If you know currency trading, you can also trade gold from the same trading platform. Give 60 days RISK FREE trial to this Day Trading Course that teaches trading not more than 20 minutes each day and making 5 figures every month. Learn Commodity Trading!

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It IS Not Too Late To Invest In Gold And Silver

September 12, 2011 By 2 Comments

If you have not been hiding in a cave for the past few days and weeks you would have seen that gold and silver have gone up continually. Throughout this same period of time, there has been an expert either on the tube or in print illuminatimg why gold and silver can’t keep going up. In the past I might have concurred, but we live in a new world were new rules are being carved out. If you base your analysis of investing in gold and silver on historical data, you are missing the bigger picture, even though it hard to believe anybody could.

Things have dramatically changed in the financial world, major countries are in debt beyond what they can possibly pay and have resolved that the only way to reduce their debt is to devalue their currency. The United States has apparently taken this approach and the world’s reserve currency has plunged in the previous month hitting multi year record lows against many currencies. This is not transitory as the Federal Reserve has already announced that it plans to turn on the printing presses in order to give the economy a jolt The evidence suggest that the previous .3 trillion printed has done nothing to make economic activity pick up, and this latest round most likely will have the same final result..

It is probable that the objective really is different then what we are being told and the money printing is purely a means to devalue the currency to reduce the value of the debt. The U.S is running budget deficit of .5 trillion a year and despite of how much the dollar is devalued, paying of the debt seems illusionary at best.  The problem is that other countries are not to happy with the Federal Reserve’s approach and promised to not let their economies to be destroyed by high currencies, creating the potential for an all out currency war were no one wins. This is reminiscent off what occurred during the great depression when industrialized counties adopted  protectionist policies to safeguard domestic interest. It was different then because the world was mostly under the gold standard and could not utilize currencies to fight the war. . Today currency in place of policy is the weapon of preference.

Were does this leave gold and silver? It is one of the only investments that merits attention at this point because as countries become more desperate so will their measures. Gold and silver will act protect you purchasing power and wealth when many currencies are on the precipice off the abyss. Some may argue that this will be over shortly, the evidence imply it is only the beginning. Yes, gold and silver have gone up significantly, but this time is different as investor flock to the precious metals as a safe haven for further financial instability.

I have trade market for thirty years and enjoy witting articles about <a target=”_new” rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/3478759']);” href=”http://goldandsilverinvestor.net”>Investing In Gold and Silver</a> and the stock and Forex markets. If you like ti read more of these articles, please visit <a target=”_new” rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/3478759']);” href=”http://investingingoldandsilver.org”> Investing in Gold And Silver</a>

 

 

 

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Why the pundits could be mistaken regarding investing in gold and silver and its a great moment to invest

September 12, 2011 By Leave a Comment

Are we in a gold and silver bubble? The pundits who have come out in the media and Internet recently would have you believe so. Obviously, history does not hold up their position or they simple do not comprehend current events.  Will these precious metals just keep going straight up? That’s not how th markets work and gold and silver will go up and down, but its broad trend will continue to be up

Those that contend that it is not an good time to be investing in gold and silver take the position that the metals have increased in value to a point were that its is not sustainable. They do not take into account that the recent rise was mirrorer by a comparable drop in the US dollar which means that gold ans silver are acting as they should be as protectors of purchasing powerThis week the first shot in war by countries to devalue their currency was fired by Japan. Likewise, the Federal Reserve is preparing to reveal quantitative easing part deux These are elegant terms that basically mean that central banks around the world are preparing to print more money to get out of the economic quagmire we have been in for more than two years.  This is the type of situation that gold ans silver are  good investments.  The demand for gold and silver continues to increase as investors lose confidence in the ability of governments to manage deficit spending and reignite the economy.

A dollar in 1913 when birth was given to the Federal Reserve is valued at a cent today. Gold on the other hand has maintained it’s purchasing power. It is almost definite with current policy today’s dollar will be worth significantly less in ten years, whereas gold and silver should continue to do well..

Investors have options, you can park you wealth in cash an pray that the unrelenting money printing finally 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. These bonds return after inflation are negative since the interest rates are so low. Purchasing stocks is another option if you like riding roller coasters and are aware that your wealth can vanish overnight  Stocks are simply pieces of paper that get their value from the fact that someone is willing to pay you a certain amount for your shares. They have no intrinsic value and someone can pay you 90% less tomorrow, if that is what the perceived value is.  You may receive a small dividend for holding the paper, but in most case it very little.

Finally, you can seek safety by investing in gold and silver They have been always regarded a storage of value and are tangible and maintain purchasing power. The participants of the gold and silver markets have been voting their votes in favor of these precious metals

I have been trading the markets for many years and enjoy writing articles about <a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/3433434']);” href=”http://www.goldandsilverinvestor.net”> Investing in Gold and Silver</a> And Related Topics. Please check out my other articles <a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/3433434']);” href=”http://investingingoldandsilver.org”> Investing In Gold And Silver</a>

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