December 2, 2009 – Gold and silver stocks have become somewhat of a fad in the current gold cycle, and investors in this avenue of the precious metal market are encouraged to weigh all of their options before adjusting their portfolios.
Gold and silver stocks could fall hard and fast if discrepancies are found in the company’s number of shares and the amount of physical metal that is stored in that company’s name. If precious metal “shareholders” find out through audit reports that the shares are backed by nothing, it could already be too late to sell by that particular point.
Many market analysts have asked our government to audit precious metal stock-issuing companies, because it is widely believed that growing deficits exist between their paper worth and their physical holdings. If gold and silver stocks are nothing more than a Ponzi scheme, investors who got in on the back end could be up the creek without a paddle on that particular investment. Therefore, market analysts are encouraging investors to take physical delivery of their precious metals for self-empowerment and a privately held back-up plan.
Investors purchase gold or silver stocks because they are unaware of our government’s historic bullion confiscation, or they simply believe that another government-led confiscation of bullion would not alter their precious metal derivatives. Our government’s henchmen would most likely seize any and all metals that the ETF companies do possess, and this could transform gold and silver stocks into worthless, broken down investment vehicles.
Investors who desire non-confiscatable gold items should shy away from gold and silver stocks, and consider pre-1933 US minted coins that have been certified by the Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS).
These coins have been more profitable than newer American coins over the last decade, and their complete privacy is a major benefit to investors who are skeptical of our government’s motives to salvage our shipwrecked economy and dollar. Contact GoldSilver.org for the latest developments in the gold and silver markets.
Senior Staff Writer – GoldSilver.org