Trend: The creation of money by governments is stimulating interest in owning precious metals as a safeguard for future purchasing power.
Currency creation (quantitative easing) usually decreases the value of the currency. Much currency is being created by central banks throughout the world to counter deflationary trends.
Link: Thoughts from the Frontline - The Great Reflation Experiment.
...the dollar must fall over time. Investors need to diversify away from this risk. There are three obvious ways.
The first is investing in high-quality US equities that have a majority of their earnings and assets in hard-currency countries.
The second is investing in gold and related assets. Gold will probably remain in a tug of war for some time. On the negative side, it is faced with nonexistent global price inflation, even deflation, and a sharp decline in jewelry demand. On the positive side, concerns over U. monetary and fiscal debauchery will almost certainly heat up. As the odds of the latter increase, gold will be a major beneficiary, and investors should have a healthy insurance position in this asset class.
Third, most foreign currencies will also benefit from these fears, and hence investors can also protect themselves by diversifying into non-dollar assets in the best-managed countries.
Link; The Dollar and the Euro ... Both Set to Fall | Money and Markets.
In the bigger picture, the U.S. has the same economic problems as Europe. And both countries follow the very same fiscal and monetary policies of printing money and piling on government debts.
These policies are principally bad for the stability of a currency. Hence, both the euro and the dollar should fall relative to gold.
In fact, it’s already happening!
Back in 2001 you could buy an ounce of gold for $250. Today, it takes about $950. And the euro has tumbled almost as much: From €250 to €680 for an ounce of gold.
So consider moving a piece of your portfolio out of the euro and the dollar and into the one stable and time-proven currency: Gold.
Link: China offers silver bullion for investment CCTV-International.
China has introduced its first-ever investment opportunity for silver bullion. The bars are available in 500 grams, 1 kilogram, 2 kilograms and 5 kilograms with a purity of 99.9 percent.
Figures show that gold was 50 times more expensive than silver in 2007. But now that figure has reached to over 70 times, the highest in the past five years. Analysts say that silver has been undervalued in recent years. They add that the metal is a wise investment for individual investors, and could be a good way to cash in.
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