In the fourth quarter of 2012 gold prices have plateaued after a 12% increase in the third quarter (in my opinion, in the anticipation of the Federal Reserve’s slackened monetary policy).
Per usual, gold analysts have varied expectations on the direction of gold prices. However there are a couple of International Monetary Fund analysts who have been writing about legislating away bank created money. That is, returning to the gold standard.
As the owner of jewelry store and precious metals seller Numis International, I believe that would send gold prices skyrocketing. We might not be far from changing money systems completely. Our current crisis may hasten the transformation of money systems.
While it sounds drastic, money systems have changed every 30-50 years over the past couple centuries. Gold was used as money from the Civil War to World War I. From the creation of the Federal Reserve in 1913 to the end of World War II, gold was tied to paper notes, through a fixed rate of exchange between the U.S. and foreign central banks. Since 1971 we have had the same system Nixon established by ending the even exchange from dollars to gold.
Most of us have lived our lives with the dollar, but for generations before us, people didn’t. The same goes for other currencies in various countries. “At some point, we may wake up and find out the system won’t work anymore,” Notowitz says.
I am expecting our money system to fail by 2020, in a dramatic fashion. Paper money will become worthless, but gold and silver will shoot up.
I have a lot of confidence in silver and gold. People are losing confidence in the currency and they want something with intrinsic value. Gold and silver are that medium that people will use to purchase in any future economic disruption.
Saturday, November 24, 2012
Silver or Gold... which precious metal is the best investment?
It seems that silver might be the best raw material for investors to hold on to. At least that’s what long-term silver analyst Israel Freidman told Mineweb.com last month in a conversation on the sustainability and future prospects of silver.
Although Freidman’s hypothesis has been largely criticized, he does make some poignant observations about silver, largely based on its industrial and investment demand.
Freidman predicts that silver will grow steadily with GDP and population. This is mainly based on the high energy conducting power of silver and its use in electricity networks. There’s really no better, accessible metal conductor than silver, and as construction around the world continues to grow, silver will be needed readily to fulfill demand. Not to mention silver’s use in many technologies, including solar panel manufacturing (a market sure to grow in the coming years).
Friedman references the underlying growth of silver in the last thirty years, despite losing key markets like the photographic field (now a digital photography field). However, aiding the industrial industry is a strong consumer investment in silver. The U.S. Mint Silver Coin is the most popular in the world, and Freidman think that one day it will be in such high demand that premiums will increase exponentially.
With the combination of raw industrial use and high investment demand, Friedman expects silver to one day surpass the price of gold. That might be a lofty prediction, but it is nice to know that maybe silver will be a better investment than we’ve expected.
Visit us at Numis International in Millbrae for more details, to meet Uncle Al, and to sensibly invest in silver bullion, gold, and rare coins.
Although Freidman’s hypothesis has been largely criticized, he does make some poignant observations about silver, largely based on its industrial and investment demand.
Freidman predicts that silver will grow steadily with GDP and population. This is mainly based on the high energy conducting power of silver and its use in electricity networks. There’s really no better, accessible metal conductor than silver, and as construction around the world continues to grow, silver will be needed readily to fulfill demand. Not to mention silver’s use in many technologies, including solar panel manufacturing (a market sure to grow in the coming years).
Friedman references the underlying growth of silver in the last thirty years, despite losing key markets like the photographic field (now a digital photography field). However, aiding the industrial industry is a strong consumer investment in silver. The U.S. Mint Silver Coin is the most popular in the world, and Freidman think that one day it will be in such high demand that premiums will increase exponentially.
With the combination of raw industrial use and high investment demand, Friedman expects silver to one day surpass the price of gold. That might be a lofty prediction, but it is nice to know that maybe silver will be a better investment than we’ve expected.
Visit us at Numis International in Millbrae for more details, to meet Uncle Al, and to sensibly invest in silver bullion, gold, and rare coins.
Wednesday, November 7, 2012
Can Gold Reach $10,000
Long term gold price targets get more and more optimistic with some respected analysts seeing $10,000 gold ahead – this may seem unlikely but only a few years ago $1,000 gold seemed out of sight!
Read the full story here: Gold to $10,000.
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