Gold and silver have been the star performers of 2011 and are poised to be the key performers of 2012.

December 28, 2011 – Gold and silver have been the star performers of 2011 and are poised to be the key performers of 2012. In a year that saw revolutions in the Middle East and an Occupation of Wall Street, the discontent of civilization has reached the point where citizens around the world are expressing their dissatisfaction with fiscal policy and the political systems the allowed for it. Make no mistake: at its core, the protester that has been emboldened by the cover of Time Magazine is protesting against an economic system.

Investors are protesting as well, just in a different way and to a different degree. Since 2008 when most of the sheep got shorn, there has been less noise from the floor of markets. Investors are still making money, though the money they’re making literally is buying their future out from under them.

Those smart enough to invest in gold and silver are much better off and they know it. The prices of gold and silver have been somewhat distracting over this year. As an inherently volatile investment, the precious metals often make would-be investors uneasy, though with the behavior of the Dow in recent months, precious metals can actually seem mild. We have experienced a 20 percent correction in gold in September and a 15 percent correction this month. The metal is still up on the year, as it began trading on January 3 of 2011 at $1,415 an ounce, but we are currently in a price dip that distorts the actual performance of gold. This end of the year price dip is reminiscent of the beginning of 2011 when the price of silver skyrocketed and several news sources cited that bankers were using their end of the year bonuses to buy precious metals, though there is no way of knowing if that is more than rumor.

Having watched the markets the way I have, it would not be surprising at all if at the end of the year the price of gold and silver temporarily dips as bankers, investors who know what they’re doing, and those in the know increase their positions in gold and silver. Take advantage of the current low prices in gold and silver. As we have seen in the recent years, there will most likely be a post-holiday bounce or possibly even a major wave up that will take the prices of gold and silver much higher.

Shannon King

Senior Staff Writer –

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