For the average person read or listen to news, it may seem as if silver cross a classic asset bubble period. However, even a superficial look at what is happening will show it is anything other than a bubble. Primary any bubble dynamics is a herd-like rapid movement in a particular market with the hopes and the plan to make substantial profits from other moving the market. We all remember the tech and estate fiascoes a few years ago. At the time virtually everyone you knew was talking about stocks or property and the purchase in these markets. But now that you know who has any money? Or on the subject? And more important still, even has it?
Let's to look at a number of critical and extremely important factors, conduct money right now.
1. The Inflation dollar / impairment / failure
Year over year, the dollar is losing 10%-20% of its purchasing power. It is corrosive and incredibly damaging to wealth. Hard goods safety is the traditional refuge for wealth and the preservation of purchasing power.
2 Deficit silver
Since 1990, the annual production of the production of money has been exceeded by demand, which is mainly industrial. Overall therefore above ground reserve has depleted ounces of 1.8 billion in 1990 to approximately 500 million ounces today. In many cases there is no alternative acceptable to money and the increase in demand for this precious metal. And for some real historical perspective, in 1900 the provision of money was approximately 12 billion ounces.
3. Gold and silver Ratio
This is related to item 2, but it is fascinating in its own right. In 1990, there were approximately 2 billion ounces of gold above ground, and today, there is still about 2 billion ounces. Thus, while in nature, the money is much more abundant element (and pricing reflected this relationship, in part) we now have the inverse of the natural ratio. In short, gold is desired and silver is desire and absolutely necessary.
4 Distribution of assets
Studies have shown that an allocation of portfolio 7% in a position of cover of precious metals is the most effective strategy to protect the downside of assets denominated in dollars. Over the past few years, this conservative approach was abandoned for a mentality all-in game/lever for the average investor. Take advantage of this period of massive and widespread is far higher than investing, any general positioning now precious metals and the future will have a huge effect on the price of money.
5 Silver is undervalued.
Based on assessments and historical reports silver should be negotiated approximately $80 and ounce. Factor in its genuine rarity and incessant demand even at the present time, and the price should be much higher. That factor in our current context of economic uncertainty and the exposure of near-total of the assets to the dollar, and you have a scenario of high price triple money turnover.
Any rational examination of money shows only really useful to consider Dynamics: everyone has need of money, directly or indirectly, and there are currently low and decreasing supplies.
What else there know?
Aaron kutchinsky is a writer, speaker and activist committed financial.
In 2010, Aaron created and founded Guardian Gold & Silver as a final and innovative alternative to the standard of the industry of gold, a company focused on the mission and revolutionary of precious metals with 3 goals specific to the spirit:
? Do the right thing.
? to encourage other people to understand.
? Get in the boat as possible as well.
It is extremely important understand the current world financial paradigm, which is now well underway. Visit http://www.guardiangoldandsilver.com/ for more information and knowledge and to request our special report.
Article Source: http://EzineArticles.com/?expert=Aaron_Kutchinsky
Aucun commentaire:
Enregistrer un commentaire