RSS FeedRSS

Gold investing and silver investing is becoming the market of choice for the American who wants to avoid political uncertainty.

February 17, 2012 – While the world watches an uneasy situation in the Middle East that has already led to high increases in the price of oil, gold investing and silver investing is becoming the market of choice for the American who wants to avoid political uncertainty. World events affect any portfolio, but some assets are more exposed than others. The world runs on oil and any interruption in that supply chain will cause serious repercussions in all markets.

Iran does not, contrary to popular belief, supply any oil to the United States. The often- mentioned Straits of Hormuz are not the main thoroughfare for our oil domestically. However, Iran has threatened to cease supply of oil and gas to seven European countries, along with several other threats, and this is enough to cause serious jitters in that market.

There are many who make money and many who lose money playing the oil futures in the commodities exchange, but gold and silver are rock solid when it comes to investing your money. We cannot count on the political theatre in any way, but we can count on what we know about monetary policy providing the bedrock for a rise in gold and silver over the coming months and years.

The Federal Open Markets Committee, a part of the Federal Reserve, has announced that interest rates will remain low through 2014. The low interest rates in this country have discouraged saving dollars because those dollars are not earning any money sitting in a bank account. Interest rates have also provided the technicals necessary for the highest nominal prices ever seen in the gold market. It is official policy that these low rates will continue and so the price of precious metals will continue to benefit.

Demonstrating the difference between investing in paper and investing in physical gold and silver, consider a United States quarter minted before 1964. They contain 90 percent silver. You could buy a gallon of gasoline for that quarter in 1964. You could buy a gallon of gasoline for that quarter today, based on the price of the silver it contains.

That is the power of precious metals in the political and financial theatre that runs twenty-four hours a day through the world. Precious metals preserve purchasing power and protect against the political rumor mill. Investing in gold and silver now will make the future a lot brighter.

Shannon King

Senior Staff Writer – GoldSilver.org

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine