RSS FeedRSS

There is little going on in the world these days that doesn’t benefit gold and silver investments, and the turmoil in the Middle East is about to kick in the afterburners.

February 25, 2011 – There is little going on in the world these days that doesn’t benefit gold and silver investments, and the turmoil in the Middle East is about to kick in the afterburners.

Causing the most angst is the possibility that a sharp drop in the oil supply will wreak havoc on the global economy. That’s the sort of high risk/high uncertainty situation investors dread the most, and they know that gold and silver have proven their durability through previous global crises.

Since the Egyptian uprising began gold has climbed 6.3% while silver has had a stunning gain of 22%. So far the dollar has been rising along with gold, an unusual occurrence signifying widespread concern about elevated risk in other assets. It also indicates that prevailing strategy is still stubbornly pinned to the dollar and only hedged with gold and silver. But the dollar’s days are numbered.

At the first sign that the dollar is failing investors will put aside their phobia about gold and silver. Most likely they will turn to gold first out of fear that silver’s lower price point will attract the ignorant masses and drive the price too high too fast. But they would be missing out on an extremely rare opportunity.

The silver price is being pushed upward by three powerful drivers: safe haven investments, rapidly rising demand in the expanding global economy, and most important, a seriously lagging supply. Most of the world’s silver production is just a byproduct from refining other metals. The dwindling number of silver mines can’t come close to meeting the increased demand, and rising prices only fractionally influence the other producers.

True inflation, as calculated by shadowstats.com, shows that gold and silver prices would have to increase at least fivefold before hitting the ceiling. That makes for an unprecedented opportunity for investors who get in early on gold and silver’s glory days.

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