The chart shows the trend in a range based on a 95% prediction band. The stand-out feature on the chart is how gold remained within the range for the past 10 year for most of the time. The two exceptions were gold’s peak in the summer of 2011 and the collapse in 2013. Gold is close to entering the long term trendline.
Tag: invest in gold & silver
Both silver and military spending increased very rapidly following 9/11/2001. An analysis of increases in the total money in circulation, as measured by M2, and for the prices of gold and cigarettes produces similar results over long periods. Increases in the money supply, deficit spending, and debt clearly drive increasing consumer prices and increases in gold and silver prices.
With a rising stock market based on cheap credit it’s no wonder that precious metals have taken a hit. Investors move money to where they think they can get the best return. The trouble is that even as stocks are going up and the gold price is hurting, investors and central banks are loading up on gold and silver like never before. There’s a disconnect here. Who is right and who is wrong?
Any rational person should question whether long term silver investors are 100% wrong, especially in light of the recent notable decline in the price of silver. Nevertheless, if they ultimately conclude that silver investors are probably not wrong, then prudence would dictatethat at least some allocation of their investment portfolio to properly held precious metals would be appropriate.
Inflation – a few percent seems unimportant, but over a decade, it becomes very important. Look at the calculation in this article. According to several surveys, real people think their personal inflation rate is around 8% per year with a significant percent of the responders claiming 9 – 11% or more per year. Are you going to believe what the government is telling you?
n this article, we summarize the key principles for gold investors. It helps focusing on the fundamental reason why they have chosen to own PHYSICAL gold and silver. Especially in times like these, where the media is using every bit of news against the precious metals, where almost all major financial institutions revise their gold forecasts downward, and where the number of statements that the gold bull market has ended is countless.
Founded in 2004, Silver Wheaton (SLW) is what is known as a metals streaming company. For SLW viewed overall, once one takes the time to review its business model, that business model is comparatively easy to understand. SLW can be said to be a different form of royalties company.
We just attended a webinar organized by Eric Sprott and his respected partners John Embry and Rick Rule. Eric Sprott and his partners are convinced that the case for gold is good, but the case for silver is excellent. They consider it “the investment of this decade”, as shown in the slides.
During his latest interview on King World News, Rick Rule explained the most fundamental principles to be a successful investor. He has a proven track of record, as one of the most successful resource investor. The key to success is very simple: control your emotions. But let’s be honest, it is not that simple in reality. Insight 1: “Your expectations for the future are set by your experiences of the immediate past.” Between 2009 and mid 2011, both the metals and the shares have been performing very well. People’s expectations for the future have been influenced by their most recent experiences. People should be looking at the current consolidation period […]
Bubbles tend to follow the 80/20 ratio indicated in the Pareto Principle, as shown with six examples in the past centuries. Many analysts believe that sovereign debt is an ongoing bubble that could burst with world-wide consequences. Because of the massive printing of dollars, the value of the dollar must fall, particularly against commodities such as oil, gold, and silver. As the purchasing power of the dollar falls, an increasing number of people will realize their dollars are losing value. Gold and silver will benefit from an increasingly desperate search for safety as a result of the decline of the dollar. If that is true, based on the same pattern of historic bubbles, a significant spike in the gold and silver price are ahead of us.
Rick Rule explains that the junior and exploration mining sector looks not very promising. His research framework reveals how to pick the winners. For investors, this all boils down to risk management, as only ten to twenty percent of the companies will do well.