Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is This Your Last Chance to Buy Precious Metals Cheaply?

Commodities / Gold & Silver 2009 Dec 02, 2009 - 01:07 PM GMT

By: Dr_Jeff_Lewis

Commodities

Best Financial Markets Analysis ArticleLong-term investors and analysts alike are siding with precious metals, virtually exclaiming that a surge in precious metal prices is in the future.  These investors are finding that today's high inflation, excessive government bailouts, and incredibly low interest rates are a perfect mix for higher silver prices.


Leading Voices

Two notable names have been driving home the necessity of ownership of gold and silver for ages.  The first is famed investor Jim Rogers, who has indicated that he expects a full 20 year bull market in the price of precious metals and commodities as a whole. 

On the other side of the spectrum, Peter Schiff, the President of EuroPacific, has advocated physical ownership of gold and silver to protect against inflation and government spending.

Fact Checking

Peter Schiff's criticism that gold and silver will continue to rise as government inflates currency is accurate, while Jim Roger's call for a 20 year bull run in gold seems lofty at first glance. 

However, after analyzing the price of gold and other commodities, Jim Roger's investment ideology does carry weight.  Unlike Schiff, Roger's viewpoint of gold as an investment comes from its rarity and its necessity as an industrial metal, rather than its utility as an investment hedge. 

Shortages of commodities are already appearing with a variety of commodities. Oil, gold and silver production has peaked, while usage continues to grow.  In fact, iron ore is becoming more difficult and expensive to mine, and the growth of the emerging markets is bringing more than 2 billion people into the “consumer class,” further fueling future demand. 

Timing the Market

Gold and silver are already seven years into what has been projected to be a 20-year bull market by Jim Rogers.  In this timeframe, gold and silver have each exploded by more than 300%, but the historical prices for gold and silver are still well below the inflation-adjusted average. 

If gold were to reach the same inflation adjusted high of the 1980s, Rogers contends that the precious metal would be worth more than $2000 today, giving it 100% upside.  Silver, on the other hand, still trades 70% lower than its all time high and offers investors a greater upside potential.

Now or Never

Both inflation and the use of industrial metals are a constant in our lives.  After all, governments will consistently inflate their currency, and gold and silver will perpetually be used for electrical applications. 

One factor that is not a constant, however, is the supply of precious metals, which has been decreasing since they were first discovered.  It is without question that five, 10 and 15 years from now, gold and silver will have both retained and even grown their purchasing power – which means they will be priced significantly higher than they are today.  With all the data suggesting gold and silver prices are poised to grow higher, there is no better time to buy physical metals to both grow and protect your wealth. 

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 © 2009 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