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Gold and Silver Investments Now

Just a few short weeks after the much-touted eight-month high in financial stocks, there is renewed reason to consider gold and silver investments as the only way forward in the current economic climate. Stocks used to be particularly meaningful in the American market as a way to fund companies and industries that you as the investor wished to see further continued and strengthened. Companies would use the money they gathered from stocks to fund additional business ventures to make the company more profitable.

In the current economic climate, however, stocks are traded more like some form of gambling. The current hoopla over the Facebook IPO is the best example we have of this theory in practice as the company already has more users than most medium-sized countries. What further can Facebook do as an independent social-networking company? Yet investors are swarming to purchase shares when they are offered at $500, $600, or $900 a piece.

In terms of savvy investment know-how, it makes a lot more fiscal sense to purchase ounces of silver at $35 a half ounce of tenth-ounce of gold, which currently sells at over $1,630 an ounce. Gold has outperformed all but a few stocks in the past twenty-four months. While Apple paid nominal dividends recently, gold has gained over 11 percent last year and over 24 percent in the year before that.

For the money you need to put at risk in the stock market, betting on companies that are using the market as a capital-generating mechanism is fiscally unsound idea. Gold and silver used to be wild cards in finance, but even Blythe Masters at JP Morgan has recently spoken about the fundamental strength of commodities such as gold and silver in the market now and in the mid-term to long-term future.

The stock market recently closed down its worst daily session in two years on Tuesday. Only a few short weeks ago, financial stocks were making the news as they were realizing eight-month highs. The volatility in the stock market is adverse to most portfolios and working Americans are now understanding the importance of gold and silver investments in their personal strategies.

Shannon King

Senior Staff Writer – GoldSilver.org

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