Nothing has been done to make traditional investments safer

November 15, 2010 – If you were concerned about the potential impact the G20 summit would have on your gold and silver investments, fear no more. Even the most pessimistic observers are amazed by the committee’s stunning lack of any significant accomplishments.

We all expected the summit would do something to address the immediate currency crisis, but they could not even agree on the significance of the issue in regards to the overarching problem of global economic imbalances, the causes of which likewise evaded consensus. Over three days the seemingly clear agenda of the meeting to head off looming currency and trade wars disintegrated amid finger pointing and obfuscating rhetoric, ending with a resolution to try again next year.

Europe’s sovereign debt crisis continues to worsen, and the possibility is growing daily that Ireland will have to be bailed out by the EU/IMF rescue fund. Already emerging economies are drowning in foreign capital resulting from western stimulus measures and are facing runaway inflation. The G20 summit convened with a clear mandate to address the global imbalances that underlie those crises and the ramifications of failing to do so are dire.

The situation can get only worse while nations bicker over trade inequities both real and perceived. Nothing has been done to make traditional investments safer so it is safe to assume that the shift to hard assets will continue, and will likely gain momentum. In evidence, a dip in prices caused by increasing the collateral required to purchase contracts almost immediately disappeared, far outweighed by more pressing market drivers.

The stage has been set for continued strong growth in commodity investments, and by far gold and silver are expected to lead the pack.

Shannon King

Senior Staff Writer –

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