Investing in Gold and Silver
Now that all the bubbles (including commodities) are crashing, and investors have
suffered horrendous losses, why invest Gold and Silver and how?
The US Dollar is rallying but this is simply because people globally are selling
assets and parking funds in cash, raising demand for the US Dollar and US Treasuries
as a safe haven.
But this is jumping out of the frying pan into the fire!! (see the US Debt section
on the home page to understand why).
At some stage, the US Dollar, whose ultimate strength depends on the credit of the
US Government, will crash. Gold, which has been the only ultimate safe haven in
the history of the planet and is not subject to any counter party risk, will soar
in price.
In fact, in May 2008, Schroders, a $ 277 billion UK fund, projected a gold price
of $ 5,000 in 3 years. I strongly believe that this will happen.
And when it does, many gold and silver mining stocks will rise hundreds of percent
(some thousands of percent) in price as we saw in the internet era.
So mining stocks, which have been beaten down to below 2001 levels when the bull
market began, will leverage the increase in the price of gold. But be warned: the
sector is very volatile and you need to keep taking profits and stop losses early
as you invest in companies.
To help you learn about investing in this sector, I have included some articles
in this section which I found very useful.
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