Gold & Silver: Time To Invest In Metals

By Haider Ali

Posted: 29th June 2012 09:30

In the midst of economic tumult, the Bank of England is suggesting more “Quantitative Easing” to help alleviate a contracting economy.  Interspersed with low interest rates, which are only benefitting bankers who are lending to each other and not to small businesses; this is the recipe for an inflationary disaster.  Adding to the myriad of confusion are politicians who instead of providing tax relief to middle class citizens are upping taxes, injecting austerity into the economy and making the nation far sicker than it ought to be.
 
When faced with economic uncertainty, much of the country tightens their money belts because they are faced with the prospect of higher bills and food prices along with the possibility of unemployment.  There are ways to counteract this scenario with chance for investment now perhaps at its greatest availability to the average Joe. 
 
For years Wall Street grasshoppers Max Keiser and recent convert Alessio Rastani have been advocating for the general public to invest in an assortment of commodities.  Food and oil commodities may be a cornered market by an elite of power-players, however the precious metals market is a ladder that many people who know nothing about the stock exchange and commodities can step on to. 
 
Precious metals are accessible because of their price range and physical availability.  The likes of Rhodium and Platinum can be purchased between twelve and fourteen hundred dollars per ounce, despite their scarcity.  Palladium is much cheaper at six hundred dollars an ounce but the big two that stand out are of course Gold and Silver both for differing reasons.
 
At sixteen hundred dollars an ounce, gold is a great long term investment because of the uncertainty surrounding the dollar being considered the world’s currency reserve.  With the paper money becoming valueless more and more people are investing in gold.  However Robert Kiyosaki, a major player in the stock market since his first shrewd investments back in the 1960s, states “gold is an excellent investment, but the problem is it is hoarded and it’s stuffed away hence its lack of value in essence”.  This should not deter those who having a set amount of savings from investing in it at a reasonable pace over the course of time.
 
Countries such as China and India have been leading by example through investing in gold at a rapid rate because of their worry for the dollar.  The United States is facing a debt of trillions upon trillions of dollars and the super power is staring down a barrel of an economic shotgun that threatens to help collapse the state under its own might.  By buying up estates, commodities such as oil and precious metals, China is preparing itself for a possible economic collapse and is sparing no expense on a state level.
 
There are many factors cited behind the investment of precious metals on a state scale by up and coming economic powerhouses such as Brazil, India, China, Russia and Turkey.  They are all sick of completing transactions in dollars, in which the United States receives its “due entitlement”.  By trashing the dollar, many in the world of finance and economics believe a return to the gold standard would be beneficial to most of the world.  Richard Nixon’s decision to take the world off the gold standard in 1971 has only benefitted the very crème of the elite giving carte blanche to the Federal Reserve to vary interest rates causing fluctuations in the commodities markets to suit their own needs.
 
The metal I consider best for the people is silver however.  From the days of Robert Kiyosaki first investing in it when it was three dollars an ounce to today where its hovering around twenty five dollars an ounce, it’s resilience is unquestioned.  Even during recessions the price of it has been gradually rising.  But the brilliance of this metal, despite it not being available in abundance as gold is it’s an industrialised commodity. 
 
Silver is readily available, is used in mobile phones, laptops and is cheap.  Silver is a precious metal that can help protect people from inflation as paper money becomes inadequate, in an environment that is increasingly favouring oligarchs that are putting their muscle behind technocratic leaders.  One of the best ways to fight austerity is investing in silver and affordable precious metals because it will give ordinary people more economic leverage as they stare into an economic black hole that will usurp savings stored in bank vaults in the form of paper money.
 
As gold and silver continues to rise in value, the ability to convert paper money into a valuable commodity is an opportunity that should not be passed by.  Not only do you get rid of an unreliable source of currency that may no longer have a future, you gain a resource that will only keep on rising in value.  Robert Kiyosaki surmises the dollar, the euro and the pound as simply being “cash that is trash”.  Perhaps it is time people woke up and started preparing for their futures.


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