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Gold and Silver Bullion Outperforming Stock

Gold and silver bullion are performing well amidst a very choppy market. The Dow was down over 100 points yesterday and up almost 75 points today, with major indicator stocks surprising some investors. One of the stocks that everyone is talking about now is Apple, which has recently sailed over the $600 per share mark, paid nominal dividends, and announced a stock split. Apple stock appears to be the Microsoft of our day. The big question will become how high will it go.

Wal-Mart, a very popular stock and generally successful American company accounts for 20 percent of the losses in the Dow, but most investors are looking to the pervasive European problems for a reason the stock market has been sagging. Despite the recent news of stocks having rebounded from their questionable performance, we have consistently seen subsequent news about the bottom falling out.

This has generally been true of the rallies we have seen over the past year or more. Some particular stocks, like Apple, have performed very well while the majority showed losses. A few well-performing stocks are not justification enough for investment, however. After all the fiscal stimulus and recovery, if you invested money ten years ago you would be about even in today’s market after the events of 2008. That’s really saying something.

However, if you invested in gold, you would be seeing a 600 percent return on your money. Both gold and silver bullion have performed better than the majority of stocks and in some time frames they have even outperformed entire indices. This is a substantial accomplishment and it demonstrates the power of gold and silver bullion in the current market.

Remember that only in April most major news outlets were spouting happy talk about eight-month highs in the financial sector stock. Yesterday was a three-digit down day in the Dow, less than one month later. Meanwhile, gold and silver have been holding onto the gains they have made in the past year and positioning themselves for more of a gain.

This is the basis for the current economic market. Stocks are relatively risky compared to the safe-haven status and inherent strength in precious metals. Investors who are active in the markets see this dynamic and will continue hedging their exposure and strengthening their positions by buying gold and silver bullion.

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