Why Invest In Gold & Silver?
Finance → Stocks, Bond & Forex
- Author Dom Kawa
- Published May 2, 2011
- Word count 830
In the past, owning Gold and Silver accounted for a substantial portion of ones global assets. Still at this time this valuable asset has never been more under owned. Throughout many years it was universally recognized as a typical way of wealth preservation including a medium of exchange. According to facts from the CPM Group compiled at Casey Research in 2010 the value of gold on earth is only about 0.6 pct of all personal assets.
Now here is the big picture. With gold plus silver accounting for very little of the worldwide financial assets, the sudden transfer of assets from currencies to gold and silver or bonds to gold silver, inside the wink of your eye might result in gold and silver to go through the roof.
…And frankly, it wouldn’t require much for this ball to roll in to a massive financial meltdown.
At this point this is the kicker, corporations like pension and endowment funds are in possession of vehicles pertaining to investing in gold.
Though institutions such as these were prohibited from getting or owning actual physical gold silver (coin or bullion), these types of funds now utilize a method called exchange-traded.
Realize, all this is taking place without having major public notice. This is what some major hedge fund professionals have already been expressing about gold to their clients:
"Price regarding gold could possibly strike $2400" John Paulson Hedge Fund Manager Paulson & Co. Sep 2010
"Gold has a time and place, now is that time" Paul Tudor Jones Hedge Fund Manager Tudor Investments Oct 2009
"It’s advisable for everybody to own gold" Jim Rogers Co-Founder of Quantum Fund with George Soros Sep 2010
Go figure…Talk about "getting your hand caught in the cookie jar".
This becomes even better. Governments are actually purchasing gold by the truck load, after many years of being net sellers.
"If history has taught us anything…it is, history always repeats itself".
It’s simply no secret that as the distrust increases in regards to the stability on the world reserve currencies, additionally waning global confidence in the developed nations desires to pay the balance of their big deficits, 1 should ask themselves this specific question:
If central bankers everywhere in the world are obtaining gold then it has to be for a reason?
Even so, before you marinate on the above…Take a glance what the media has exposed right before our eyes. Here are a few excerpts from your media about central bank gold purchases:
"Central banks turned to buyers from sellers of gold for the first time in 20 years in 2009, driven by Chinese stockpiling and worries over global currencies" Metals Research and Consultant CPM Group April 27, 2010
"Central Banks join gold rush and are net buyers of gold" CNNMoney.com June 2010
"China Revealed it had secretly raised it’s gold reserves by 30 billion USD since 2003" Financial Post April 24 2009
"India Central Bank buys 200 tonnes of gold from IMF" Bloomberg November 3 2009
Cum-mon folks. Read in between the lines.
Needless to say, with gold supply lessening and demand growing, nations like China inspire it's 1.4 billion citizens to acquire gold and silver with FIVE per cent of their savings. Just last year, Chinese households between July and October absorbed 16 percent of world wide gold demand. Look at this shocking fact:
Chinese people acquired nearly 1 / 2 as much gold since the global economic crisis begun in mid-2007 as all investors living in the West!
WOW…Talk about not putting all your eggs in one basket.
The very simple truth of the matter is this. The data points to growing demand by institutional traders, smart money, central banks, and emerging markets. It is clear with the large demand comes high cost when the assumption is made that supply is usually kept constant.
But, before you decide to go putting the cart before the horse…You got to know that the availabilit of gold is not consistent. In fact it really is decreasing.
According to CPM Group data produced by Casey Research in 2010, worldwide gold production is actually declining. Also, the World Gold Council reports that global gold mining production has essentially declined since 2000, inspite of the substantial run-up in gold prices.
To conclude, let me get right to the point. With gold supply decreasing, demand increasing compounded along with growing world-wide concerns about the western nations ability to repay its bad debts and I hate to state this, but…an escalating distrust in the current world reserve currency in the US dollar, bring great upward pressure to the price of gold.
Is There A Glimmer of hope?
I will make no bones about it, with the majority of folks; the advertising has drawn the wool over there eyes and have simply no idea about these developments.
However for the rest of us who would not buy into selling their gold for cash…There is a light at the end of the tunnel.
Better safe than sorry. And that is the reason why we are suggesting that people buy gold now!
Dom Kawa is a Consultant for YOUniqe Inc. for one of the most innovative Wealth Creation and tangible assets company in Canada . If you are searching for the solution on the way to maintain plus grow your wealth using [Gold and Silver](http://gold-and-silver-
investment.com/) visit us today.
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