Gold & Silver

I am baffled by the reluctance of knowledgeable analysts to entertain the prospect of substantially higher precious metals prices in the months and years ahead. Why this lack of confidence by almost every analyst when the messy ‘political process’ virtually guarantees such increases?

It is impossible to understand and appreciate the tremendous appeal of gold and silver without understanding the precise and comprehensive definition of the word "money". This article does just that.

Every investor owes it to himself to make sure that his investments will not be completely wiped out in the coming financial Armageddon by providing an adequate level of insurance against risks that prey upon the value of paper investments i.e., physical gold held by the investor himself on his own premises.

While it is never too late to buy gold one look at the current gold:silver ratio clearly suggests that silver and/or the stocks and warrants of quality gold and silver miners and royalty companies are a MUCH better buy at their current prices than buying gold.

Instead of gold, people commonly think of paper money as the only medium of exchange and as a store of value; cash is after all their unit of account. They see the gold price rising when they should be seeing the value of paper money falling.

The current rally in gold & silver is but one of many steps in a bottoming formation. Each successive step confirms the one that came before. The next step will be to watch the next downward reaction to see how it unfolds in order to assess the significance of the rally over the past two weeks.

As an investor, one must always understand the “why” and the “when” one should be a buyer of gold - and there are many reasons why people buy gold: as a trade; as an investment; and as “insurance” so, before you buy gold, you must understand which buyer you are so that you first understand the “why” of your gold purchases. Once you understand your own “why,” then you can begin to work on the “when.”

Our theory explains about 88% of actual $USD gold prices and 92% of actual gold returns on a quarterly basis, including the peak prices of gold, over the 1979-2002 period. Words: 1497

'Real money' must be a 'store of value, 'precious' or scarce, uniform and be evenly divisible which fiat money is NOT and gold and silver IS.

All investors need to have significant protection from the economic turbulence which is certain to lie ahead of us, through purchasing gold and/or silver bullion. However, do not forget that it is the gold and silver producers which offer the greatest potential in surviving (and hopefully thriving) in these challenging times. Words: 1108