Precious Metals -- Gold(en)RulesPrecious metals have always held a fascination and allure for humankind since they were discovered. Used as the main medium of exchange (money) for thousands of years. They are stable in times of uncertainty, or during a bad economy. Important physical characteristics of Gold Silver and Platinum makes them indispensable to modern industry. As with all commodities they have had their ups and downs, but most analysts agree that precious metals are a good place to hedge against inflation. World wide economic instability is causing governments to pour cash (liquidity) into the economy. In order to do this, many governments are quietly printing money with no (Gold or Silver) being held in reserve to back up this currency. Regardless of how well this is coordinated and managed, printing money (fiat currency) will ultimately result in inflation (reflected as raising prices, but in reality is devaluation of the the currency). This is your main defense against inflation. Gold
A $10,000 house in 1954 is worth $300,000 -- 50 years later -- today. If you used gold to buy the house in 1954. You would have needed approximately 280 one ounce gold bars. To buy that same house today you would need approximately 280 one ounce bars. It maintains its value. As goes gold so goes silver, platinum and palladium. The price of these metals has soared in recent years, reflecting “real inflation” and the decline of the US dollar. The current market is not showing the steady increase it should be. This leads analysts to suspect artificial manipulation of the market by governments--and with good reason. "If they took off on a huge sustained bull market most equity holders would see their holdings decline even more and begin rushing into the precious metals market causing even greater damage to the equities market and a sharp rise in the precious metals market." There is a very good case for owning Gold, Silver, Platinum as a long term hedge against the coming huge inflation numbers. Priced in US dollars on major indices, so any decline in the value of the US dollar will cause prices of Gold, Silver, Platinum to rise. For a great book that really explains this well. Click on the link below.
Silver
Silver is substantially less expensive than all of the other precious metals. It is presently less than 1/50 the price of gold. Silver has much greater demand than gold, because of its use in Industry. Current conditions indicate an even greater demand for silver with what is now considered a diminishing supply. This will result in only one thing an increases in the value of silver over the near and long term. ValueThe demand for Gold, Silver, and Platinum is driven not only by their practical use, but also by their role as investments and a store for value. There is very real possibility of massive increases in the value of precious metals as the possibility of dire declines in US dollar and its loss as a world wide reserve currency become more and more likely.Any paper assets tied to the dollar will fall at the same rate.Does this mean the sky is falling and civilization as we know it will come to an end? NO, but those with the foresight can take advantage, position themselves to ride out any major financial disruption with a gain. The MarketThere is a wide range of world-class, investment-quality gold, silver, platinum and palladium bullion and bullion coins available.For more information about Gold, Silver, Platinum Click on the link. This information will introduce you to this market and answer any detailed questions you have. Return from Precious Metals to Home Page
Terry Johnston CFPJ C Mitchell Financial Services Inc. Phone: 866-721-7781 ext. 232
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