FunnyMoney
10th April 2011, 11:33 PM
Silver can still be found just under $42 spot price as the short term move to $44 proceeds. Not to be left behind, gold continues to see new highs develop. Platinum and palladium have returned to over $1800 and $800 and it's likely that move is a signal for the next leg up.
Globally, investors have demonstrated a willingness to ignore the safety of bonds and paper currency. It appears the definition of safety is changing and monetary metals will soon equate with wealth and money. Interest both around wealthy circles but also now among select average investors, especially those in Eastern economies continues to pick up for the metals.
But investors have a long way to go with the precious metals market. Wealthy portfolios and average savings hold still only a single percent or so in metal. While some pundits talk about a move toward 5 or possibly 7 percent allocation, those who understand human nature and actual economic theory are thinking a move toward 50% or possibly 70% holdings are more likely to become the eventual target.
Of course there's not even close to enough gold and silver to support such a massive influx in investment at anything close to today's prices, regardless of where the percent lands. However, extreme capital movement is exactly what we're likely to see over the next decade. This is a move that under today's economic systems will not be avoided.
The course is set, the fundamental drivers are sound and getting sounder, momentum has been very strong and is getting stronger. Silver will continue to remain front and center as it has more of the fundamentals behind it and is at a very low entry point relative to the other metals. While there is very little slack in platinum, palladium and gold - there's much less slack in silver. The choice for the investor trying to protect their savings is simple: Have silver and have wealth and safety. Or ignore history and modern day economics and become very painfully and rudely reminded of them.
Globally, investors have demonstrated a willingness to ignore the safety of bonds and paper currency. It appears the definition of safety is changing and monetary metals will soon equate with wealth and money. Interest both around wealthy circles but also now among select average investors, especially those in Eastern economies continues to pick up for the metals.
But investors have a long way to go with the precious metals market. Wealthy portfolios and average savings hold still only a single percent or so in metal. While some pundits talk about a move toward 5 or possibly 7 percent allocation, those who understand human nature and actual economic theory are thinking a move toward 50% or possibly 70% holdings are more likely to become the eventual target.
Of course there's not even close to enough gold and silver to support such a massive influx in investment at anything close to today's prices, regardless of where the percent lands. However, extreme capital movement is exactly what we're likely to see over the next decade. This is a move that under today's economic systems will not be avoided.
The course is set, the fundamental drivers are sound and getting sounder, momentum has been very strong and is getting stronger. Silver will continue to remain front and center as it has more of the fundamentals behind it and is at a very low entry point relative to the other metals. While there is very little slack in platinum, palladium and gold - there's much less slack in silver. The choice for the investor trying to protect their savings is simple: Have silver and have wealth and safety. Or ignore history and modern day economics and become very painfully and rudely reminded of them.