China, with more than $3 trillion in foreign-currency reserves, plans to set up new funds to invest in precious metals. China, which has just 1.6 percent of its reserves in gold, may invest more than $1 trillion in bullion, Pento said. âChina wants to be an international player, and they need to own more gold than they currently have.â As developing countries accelerate purchases, gold may reach $2,000 an ounce this year, compared with a record of $1,569.80 today in New York, said Robert McEwen, the chief executive officer of producer U.S. Gold Corp. Euro Pacific Capitalâs Michael Pento, who correctly predicted goldâs highs for the past two years, forecasts a 2011 high of $1,600. http://www.bloomberg.com/news/2011-...nal-bullion-extending-record-price-rally.html There's more Chinese with investable income then the entire American population and the chinese government is encouraging gold and silver investing.
Reminds me what had happened last year when Chinese farmers cleared out rooms in their homes to store cotton. They told the middleman that they had no cotton for sale hoping for higher prices. Then the price plunged.
Gold is lousy investment as doesn't pay dividends or rental income. Best to invest in gold is when it is was very undervalued.. like it was when it was below $500.
$12 Trillion Boss Says "I will be loading up Silver" Speculators, manipulators, government intervention, profit-taking, and regulations, it doesn't matter what spurred the recent sell-off in commodities. The fact is, nothing has changed. Would I be surprised to see silver at $25? Nope. But I wouldn't be surprised to see it $50 either. If silver goes back to $25, I'll be loading up. --Bill Gross Head of PIMCO http://www.seekingalpha.com/article...-to-short-u-s-bonds-unless-double-dip-happens
Money Loses Purchasing Power but Silver & Gold Retains its Value Investment in gold and silver has been in the portfolio of people for over generations. Silver can be used as a medium- or long-term investment vehicle, or as a way of saving money for rainy days. Investment in precious metals like silver is much more valuable than keeping money in your bank account because money loses its purchasing power whereas precious metal retains its value. While the prices of fuel, food and other basic amenities are increasing, the value of money versus the things it can buy is decreasing by the day. That is why the price of precious metals is on the rise and silver has become a popular option of investment among many as a hedge against inflation. If you invest in silver for the medium or long term, you can expect that it will fetch a good return in the future. http://business.ezinemark.com/importance-of-silver-investment-7d32c906b563.html Silver can be used for barter when government issued currencies fail. More important to figure out where you food water and shelter is going to come from. If you still have a lot of cash left, go ahead and buy silver. But don't count on hoarding silver to make you wealthy. Unless you happen to have a silver mine...
50,000 Silver Coins Selling for $104 an Ounce & Shortage of Silver $520 for 5 ounces Silver or $104 for one ounce Silver http://www.providentmetals.com/2012-5-oz-chinese-silver-panda-coin-with-box-and-coa.html There are 1 million or more silver coins which command price of $100 to $260 an ounce. This means, today there are buyers who will pay $100 to $260 for 1 ounce silver. When 50,000 Silver coins are sold for $104 an ounce but Silver and gold price displayed on computer screen show "fall" that means somebody will be in serious trouble. There is software error or bug which shows Gold & Silver price "fall" 1% or 2% or 10% when the fact is the price has gone up 1% or 2% or 10%. Read this: The world has already witnessed a 93% drop in global inventory of Silver since the 1950 and consumptiom, investment demand continues to outpace supplies, that the world could witness silver shortage as early at 2015 or if not latest by 2020, according to FutreMoneyTrends.com. In a new video titled âAll Hell Will Break Loose in the Physical Market If Silver Goes down: Silver Investment Updateâ, it is said that in 1950 there were 10 bn ounces of silver above ground available which was sufficient for 140 months of supplies but by 1970 available supplies were sufficient for only 70 months and by 1990 15 months and by 20101 11 months. http://esilverprices.net/world-could-witness-silver-shortage-by-2015/ There are millions of people who have 10 Kg to 500 Kg and more Silver. Big companies will pay them $100 or more for one ounce Silver when there is shortage of physical silver. This means today Silver has a value of $100/an ounce or more. Correct me if I am wrong? This is the reason there is heavy buying going on for physical Silver.