Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Why Precious Metals Investing Has Only Just Begun

Commodities / Gold and Silver 2010 Jan 06, 2010 - 03:15 AM GMT

By: Dr_Jeff_Lewis

Commodities

Best Financial Markets Analysis ArticleAs with any commodity or investment, the rules of supply and demand make the biggest impact on price.  Today's precious metals investors have only seen the ground floor of an explosion in the popularity of gold and silver as an investment.


New Consumer Level Products

The growth in metals as an investment can be seen easily through any media outlet.  Firms are lining up to sell gold and silver coins directly through television on popular newscasts.  Local coin shops are frequently sold out of consumer grade metals investments, as people flock to trade in their cash for real wealth.  In addition, in the past two years, the number of companies offering to buy your gold and silver has surged.  Each day, we see more and more into the future – a future of silver as a popular investment.

Mid-Range Offerings

The popularity of gold and silver as an investment isn't just seen on TV or in the local coin shop.  Wall Street is also jumping on the bandwagon, offering new “paper” gold and silver products that allow you to “own” gold or silver without ever taking delivery.  While these options aren't the best for investors looking for wealth preservation or the ability to actually hold and touch their investments, they are certainly raising awareness, as well as demand, for gold and silver through the futures markets.  Even platinum and palladium, two rare industrial metals, are attracting attention as people look for anything resembling a metal for an investment.

Buying Makes Sense

In just one decade, from 1999 to the end of 2009, investors watched as the stock market entered a free-fall and ended the decade just where it had left off.  All the while, gold and silver were pushing higher and higher, up more than 400% from the beginning of the decade, while not grabbing a single look from most investors. 

Warren Buffett was one of the most prominent silver investors during the last decade, but no one seemed to notice.  After a short time, he exited his position, taking a hefty profit, but missed out on the boom that was still yet to come. 

A New Investing Philosophy

With the US stock markets showing what is very similar to Japan's “Lost Decade,” investors do not need to be reminded about how important it is to grow your wealth while simultaneously protecting it.  Today's investors aren't looking for the next complicated financial derivatives trend or the fastest way to make a million on the newest dotcom.  Instead, investors are looking to growth their wealth over time, protect against inflation, and be invested in an asset they can hold and see with their own eyes. 

Investors are no longer on the offensive; they want instruments that can play offense and defense, growing wealth while also protecting it.  They're looking no further than metals to accomplish just these goals.

A Normal Cycle

The shift into metals is a phenomenon we've seen over history.  Hot stocks fizzle, bubbles come and go, but silver always remains as a popular investment.  In fact, in the depths of each big recession, the stock markets value, as calculated by the price of the Dow Jones divided by the price of gold, always comes within 1.  Throughout history, gold and silver have been the representation of wealth, and it requires very little investigation to find out why.

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2010 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules