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An interesting trend can be seen in gold and silver investments

November 08, 2010 – An interesting trend can be seen in gold and silver investments. As ever greater numbers of investors are hedging traditional investments with gold, many are now hedging their gold investments with silver.

The strategy was probably introduced as a gimmick to lure individual investors into ETFs, many of which are already close to playing out. However, the idea is making sense to individuals who have already discovered the many advantages of directly investing in gold and silver.

The government’s policy of holding back the dollar to boost exports is making an already troublesome situation in global currencies even worse and driving investors to commodity markets across the board. Although gold is largely preferred by the very well to do, those of lesser means are discovering the investment potential in silver.

We are very possibility witnessing the first stages of the same evolution in the silver market that the gold market has been undergoing the past several years – a switch from demand being driven by short term speculation to being driven by long term investment.

The middle class in America built their wealth gradually over decades with steady modest contributions to their investment funds, only to see it disappear before their eyes. Many were quick to recognize the danger and avert ruin with gold investments, but many more were forced to use whatever resources they had left to deal with immediate hardship. Faced with rebuilding their wealth, they are discovering that silver investment merits serious consideration. It is impossible to predict whether investor interest in silver will ultimately tame the market. However, the growing involvement of investors in gold and silver is expected to continue driving prices steadily upward over the coming months. Diversification strengthens any investment portfolio, and the right mix of gold and silver investments might well prove to be the winning strategy.

Shannon King

Senior Staff Writer – GoldSilver.org

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