5 Reasons Why You Should Invest in Gold and Silver
Based from recent action in the financial markets, all is well in the world once again. Hurray! Financial and economic order has been restored. Stocks are rallying. The dollar has regained its strength.
Well, not really.
Before you get all giddy and rush out and trade your precious silver and gold bullion for depreciating paper dollars, shrug the overwhelming brightness of the bills and examine the real facts behind the sudden hype. Here are 5 reasons why you should invest in gold and silver.
Reason #1: The Weak Economy Is NOT Getting Any Stronger
Retail sales over the past few months were depressing. Wal-Mart’s 3% same-store sales growth came in way below expectations. But yes, Costco’s results were pleasingly up to 10%. But, when you dig into the small details, you will discover that the reason behind that growth was the increase in gasoline sales. Ignore those figures and the sales were up for only 6%, less than consensus estimates.
Reason #2: The Employment Scene Is Depressing
Jobless claims rose to more than half a million (455,000). That is from 488,000 the week before. Those figures got up as job cuts by U.S. employers increased last month. The U.S. has now lost jobs for seven straight months and the unemployment rate is at a four-year high.
Reason #3: Financial Markets Are Still Shaky
Most mortgage giants missed earnings estimates by a wide margin, reported huge losses and trimmed down their dividends. Some of these mortgage tycoons even have a negative equity position. Meaning, shareholders would get nothing if these firms do not pay down all of its debts and sell its assets.
Reason #4: The Housing Market Has NOT Calmed
Mortgage delinquencies are getting sever. Mortgages that were issued during the first half of 2007 now have a delinquency rate of .91%. The delinquency rate for the year before that was just 0.33%.
Reason #5: Inflation Is Coming – And It May Be Hyper
The economic monster named inflation is alive and well. The consumer price index (CPI) is up to 5% through June. That is already the largest increase ever recorded in history since 1991. But that statistic is even far worse that it appears.
During the times of Pres. Reagan and Clinton, the way that rising inflation was measure was changed to lower the official rate. So if you calculate the same CPI in the same way that it was calculated in 1980, you would have to add 7% to whatever the published figure is. That would mean that the real and factual rate of inflation is a running 12%.
Remember that throughout history we have seen paper money (aka “fiat currency” or “greenbacks”) lose its value. But these precious metals – silver and gold – have survived war, inflation, deflation, recession and depression. Silver and gold bullion are truly your safest investment if you realize their true value.
I bet you’re itching to tell me about your excitement in this investment opportunity you probably haven’t thought of, so leave a comment cause I’d like to share with you some more information…




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