Reversing the 2009 recession: love of gold and silver

Battle with gold:

The situation has changed. Investing in this safe zone is now a complicated and risky undertaking for businesses and individuals. Employment is considerably more complicated than in previous years. And all this is happening because the plague of the financial crisis is all over the world.

The crisis began to show its impact from mid-2007 and 2008, when many stock markets collapsed and several other financial institutions collapsed, with unemployment exploding as the country’s main problem. Many wealthier nations were compiled to seek a rescue package to rescue their financial systems. In this volatile financial situation, it is obvious that investors are more concerned with a safe investment to survive this thorny crisis period. So what can be as simple as a solution?

Today, it is the most important question on one’s mind.

Invest in gold and silver:

Gold and silver have always been a better solution in the crucial period of the financial crisis. Even in the great depression period (1932-1936) when the price of gold was set by the government, the value of silver doubled, rewarding its investors with a good return. Similarly, in the next long bear market which was 1968-1980. Silver rose from about $ 2 in 1968 to a peak near $ 50 in 1980. It is the economic tendency for gold stocks to rise during inflation and during deflation. Investing in gold is a good hedge against inflation. Where gold rises as the value of the dollar falls. And as the government cuts interest rates significantly and wildly prints money creating inflation to offset that deflation. So this leads to substantially higher gold prices. Therefore, investing in gold coins reduces the risk in our investment portfolio.

Reasons to invest in silver:

• Silver is a precious metal that is used and valued as money. Because the silver supply cannot simply be printed or supplies augmented with simple computer data entry, it retains its purchasing power over time. Expanding the silver supply is a methodical and long-lasting process that requires significant human effort, investment, exploration, discovery, production, transportation, and storage of a physical item. The precious metal element of an investment is very attractive when other currencies are losing their purchasing power.
• Silver has unique characteristics that are almost priceless for commercial use. Silver is used and consumed by all modern societies. It is used in medical supplies, photography, computer chips, and in a growing aspect of our lives. Because most products, such as a computer, require a very small amount of the metal in the finished product, users of the metal will pay almost any price for silver in the event of a potential shortage. With large emerging nations like China and India with billions of new consumers, commercial demand for silver is another extremely optimistic factor to consider.
• Another key reason to invest in silver is the recognition of “silver paper” and its negative impact on the price of real silver. Silver paper is a paper contract that represents silver and is not necessarily backed by an actual physical silver bar. E.g:
• Financial institutions currently sell silver certificates for pooled silver accounts. We understand that these pooled account certificates can far exceed the actual silver available anywhere in the world. Any short position held by institutions is potentially a great suppressor of the price of silver on the free market.
• The futures markets are another example of a paper contract that represents physical silver. It is believed that there are more short positions in the silver futures markets than can be physically delivered if necessary. This unnatural condition can be another inhibitor of price appreciation.
• In silver, prices rise exceptionally as in the 1970s, when silver rose from less than two dollars to more than fifty dollars. This is an aggressive appreciation of around 2700%. We believe that we are currently in similar market conditions and could have a repeat of this significant growth.

Reasons to invest in gold:

• According to the World Gold Council, members of the Central Bank’s Gold Accord sold 297 metric tons of gold so far this deal year. This suggests that the full quota of 500 shades will not be released this year. Less supply generally means a higher price.
• Production from the world’s gold mines remains stable. The large increases in the price of gold observed in recent years have not stimulated any significant increase in world gold production. In fact, production may show a small decline in the next few years. Production is already falling off a cliff in South Africa, previously the world’s largest gold producer.
• The demand for jewelry in India, the world’s largest manufacturing market, is starting to pick up again, while emerging markets such as China and Vietnam are having a strong impact as their populations make more money and therefore buy more. gold.
• SPDR Gold Shares (GLD) formerly known as Street Tracks Gold ETF, whose exchange-traded fund contains physical gold and tracks the metal very closely. As inflation takes off and the value of the dollar falls, gold should rise.