Battle for gold:
The situation has changed. Investing in this safe zone is now a complex and risky task for businesses and individuals. Employment is more complicated than in previous years. All this is happening because there is a global financial crisis.
The crisis began to manifest itself in mid-2007 and 2008, when many stock markets collapsed and unemployment became a major problem for a number of other financial institutions. Many wealthy nations have gathered to look for a rescue package to save their financial systems. In this volatile financial situation, it is clear that investors are more concerned about safe investments to survive in this thorny crisis. But what could be so simple as a solution?
This is the first question on everyone’s mind today.
Invest in gold and silver:
Gold and silver have always been a better solution during the crucial period of the financial crisis. Even during the Great Depression (1932-1936), when the price of gold was set by the government, the value of silver doubled, bringing good returns to investors. Similarly, in the next long bear market in 1968-1980. Silver rose from about $ 2 in 1968 to about $ 50 in 1980. It is an economic trend that the gold fund will increase in times of inflation and deflation. Investing in gold is good inflation protection. Where gold rises as the dollar falls. When the government lowers interest rates significantly, and to prevent this deflation, it is savagely printing money, which creates inflation. Thus, this leads to significantly higher gold prices. Thus, investing in gold coins reduces the risk in our investment portfolio.
Reasons to invest in silver:
- Silver is a precious metal that is used and valued as money. The silver supply preserves purchasing power over time because it simply cannot be printed or increased in supply with a simple computer data entry. Expansion of the supply of silver is a methodical and continuous process that requires significant human effort, investment, discovery, discovery, production, transportation and storage. A precious metal element of an investment is very attractive when other currencies lose their purchasing power.
- Silver has invaluable unique properties for commercial use. Silver is used and consumed by all modern societies. It is used in medical supplies, photography, computer chips, and a growing part of our lives. Since most products, such as computers, require very little metal in the finished product, metal users will pay almost any price for silver in the event of a potential shortage. The demand for silver in trade with large countries such as China and India, which have billions of new consumers, is still an extremely expensive factor to consider.
- Another major reason to invest in silver is the recognition of “paper silver” and its negative impact on the price of real silver. Paper silver is a paper contract that represents silver, which should not be supported by an actual physical silver rod. For example:
- Financial institutions currently sell silver certificates for consolidated silver accounts. We understand that these combined account certificates can be more than real silver available anywhere in the world. Any short position taken by the institutions is potentially a big pressure on the price of silver in the free market.
- Futures markets are another example of a paper contract representing physical silver. In the silver futures markets, it is believed that there are more short contract positions than when physically delivered when needed. This unnatural situation may be another price inhibitor.
- The price of silver rose sharply in the 1970s, as silver rose from less than two dollars to fifty dollars. This is an estimate of about 2700% aggressive. We believe we are currently in a similar market environment and could potentially lead to a repeat of this significant increase.
Reasons to invest in gold:
- According to the World Gold Council, members of the Central Bank’s Gold Agreement have sold 297 metric tons of gold so far this year. This means that the quota of 500 tons will not be released to the markets this year. Less offer usually means higher price.
- Production from the world’s gold mines remains stable. Major gold price increases over the past few years have not stimulated a significant increase in global gold production. Indeed, the product may show a slight decrease over several years. Production in South Africa, once the world’s largest gold producer, is already falling off the cliff.
- Demand for jewelry is on the rise again in India, the world’s largest fictitious market, and emerging markets such as China and Vietnam are having a sharp impact as people make more money and therefore buy more gold.
- SPDR Gold Shares (GLD), formerly known as Street Tracks Gold ETF, holds physical gold in exchange and tracks the metal very closely. As inflation rises and the dollar falls, gold should rise.