Gold and silver are good places to be in this unsure market.

November 28, 2011 – Gold and silver are good places to be in this unsure market. As Black Friday successfully brought the American people out to malls, increasing spending by 6.1 percent, stocks finished their worst Thanksgiving week ever. Americans may be spending slightly more at the mall, but markets are still on very unsure footing. As the news goes to Black Friday shopping sprees, is highly advisable to consider the current a very good time for investing in gold and silver.

The debt crisis in Europe is again making headlines, including some well-placed voices at Bank of France and Goldman Sachs. These sources have actually called Europe a “true financial crisis” and predicted “the failure of the Euro project.” As Germany continues to make plans that demonstrate its unwillingness and political inability to further fund European bailout deals, there is progressively less and less reason to expect a quick and easy end to the crisis. While devastating to confidence and sentiment in markets, gold and silver investment has steadily gained as a safe haven and hedge against European troubles.

In the United States, it was recently reported by the Bank of International Settlements that that notional value of OTC derivatives has skyrocketed $107 trillion in the first six months of the year. Derivatives are widely held to be the principal root cause of the current economic crisis. Considering the total amount of outstanding derivatives now stands at $707.5 trillion, and was at a record of $693 trillion in 2008, the current manufacture of derivatives by banks at such an astounding clip foretells that our problems have not yet been resolved by the actions taken in government bailouts, legislation, or recapitalization.

Derivatives began their astronomical rise about ten years ago—the same time that the price of gold, and subsequently silver, began its uptrend. There are several reasons, historically and technically, to see the price of gold linked to the popularity of derivatives. If the derivatives market is any indication at all, the price of gold and silver is set for another major wave up. Certainly, the sovereign debt crisis in Europe and the numbers coming out of the markets in the United States support further upward action in the precious metals market. Gold and silver investment is certainly the smartest option out there right now.

Shannon King

Senior Staff Writer –

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