Gold and silver have had quite a year, though the most recent correction has made celebrating a little difficult.

January 3, 2012 – Gold and silver have had quite a year, though the most recent correction has made celebrating a little difficult. For a year that Goldman Sachs says, “no one will lament” see pass, the performance of the precious needs to be reevaluated. Since the precious metal Bull Run began in 2000-2001, gold is up around 600 percent, depending on the current spot price. Considering Great Britain has a debt-to-GDP ratio of 900 percent and it would take the entire GDP of the world for 11.2 years to pay off the $707 trillion of worthless Over the Counter Derivatives now in existence, a 600 percent Bull Market over a decade is a startling performance.

Fundamentals in the market are still in place for a long-term bull run, despite what the television pundit of the moment says about it. George Soros, though he is good at making money, is probably not the most trustworthy individual when it comes to free advice. This is the guy who was calling gold “the ultimate bubble” in 2009-2010 even as he was buying it in record amounts.

Current Federal Reserve policy, which it has publicly announced it will maintain “indefinitely,” is to keep interest rates near zero. This has banks, including Goldman Sachs, Credit Suisse, and Societe Generale, advising their clients that the gold market will perform quite well through 2012 at least.

The current relatively low price of gold is possibly the best entry point we will see for some time and is the best we’ve seen for months. A deeper correction is always possible and unpredictable given actions taken regarding the European problem, but a long-term market all but guarantees a return on investment.

2011 was a sluggish year, to put it mildly, for markets. That’s part of the reason more derivatives were created in the first six months of the year than at any other time in history. While all that literally valueless paper might inflate the markets temporarily, it is, at best, questionable fiscal policy and we run the real risk of seeing markets catch on fire in 2012 as they realize the bulk of their constitution is junk. During this time, gold and silver will shine, protect you and your family, and provide the basis for any return to real market value.

Shannon King

Senior Staff Writer –

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