[T.S.R:17029] Why Are Silver And Gold Red Hot?

Why Are Silver And Gold Red Hot?

Gold has been hoarded by investors, traders and the rich for over 5000 years. But in recent times it is the poor cousin of Gold which has been outperforming...Silver. Over the past 2 years while Gold has doubled, Silver has tripled in value. So while investors worry about everything from QE2 to the USD, Global Inflation, and speculation Silver has been making quite a march of it's own.

 

Why the huge difference in return?

It's simple… while gold and silver have many of the same drivers, there are some very important differences.  Let's look at their similarities first…

Right now the overriding driver of gold and silver prices is fear.  Fear of inflation, fear of the dollar being devalued, and fear of a double dip recession.

Fear, my friends, is a powerful motivator.

And that's why these precious metals are skyrocketing in value.  Anyone with two brain cells to rub together can see the US Federal Reserve is flooding the market with cheap and easy money.  They call it quantitative easing… I call it destructive.

What's happening is the cheap and easy money is sloshing around the global economies.  Once everyone wanted US Dollars… now most smart people don't!  Why?  Because US Dollars are just like a commodity… too much supply and not enough demand cause the value to fall.

It's simple right!?!

So why hold onto US Dollars if their value is falling?  You don't.  And that's why the US Dollar is going to continue to fall.

There's a silver lining to this story however.  Gold and silver love the falling dollar… it only serves to drive their value higher.

Another driver is inflation.

Inflation is closely tied to the US Dollar, the Federal Reserve decisions, the economic recovery, and even employment rates.  Now I'm not going to get into all those details here.  Let's just say inflation is a big reason many investors are buying gold and silver.

So we have the falling dollar and inflation driving gold prices higher… but there are other forces at work pushing silver even higher.

While gold and silver are great to use in jewelry and coins, silver is also used as an industrial metal.  This precious metal does double duty. Silver is often used in electrical contacts, in medical devices, as an antimicrobial agent, and as a catalyst.

The list of uses goes on and on… but the key is commercial demand for the metal is strong.  And as the economy continues to heat up, demand for silver has only one direction to go… UP!

Now if you believe, like I do, silver demand is heading higher - and silver prices are poised to move higher as well - there are a number of ways to profit.

You can buy coins or bullion… but then you need to store it and worry about people stealing it.  You can buy an ETF holding tons of the metal… and that's not a bad option.

--
For Anything related with Stock market be Online at
http://www.niftyviews.com/
 
Get free updates on your mobile phone. Sms "Join TSR " and send to 09223492234
 
FOR TRIAL STOCK/NIFTY/OPTION CALLS
 
 
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group.
To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
 
To unsubscribe email
Stockresearcher-unsubscribe@googlegroups.com
 
for more info visit
http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB
.
This is Not a Spam Mail.
Disclaimer :-
"The opinions expressed by the members on this board are based on
their individual experience and perceptions and to share information
with other members with the best of intentions to help fellow members
in investment decisions as equity investment is a risky venture."