samedi 14 mai 2011

Is the new Gold Medal Silver

These days investors have a bit of worry. The economy is recovering very slowly, inflation is a real threat, and there is a culture of competition from foreign economies. For most investors, in the period of uncertainty, they decide to buy precious metals such as gold and silver. Over the past 4 years, prices of gold and silver have been on the rise.

Investors look at metals such as silver and gold as a way of protecting their assets the value of the dollar should continue to fall. Over the last 54 weeks the price of the iShares Silver Trust has almost doubled. iShares Silver Trust tracks the price of money. It would be surprising, but silver did better than gold. And we all know is not an easy task.

And while the earnings that silver experienced are quite impressive, you must remember that gold bull market began before the silver. Always keep in mind that the money is not a stock. When you purchase shares you buy a piece of property of a company that produces revenues, earnings and dividends.

When you purchase a precious metal such as silver, you basically are betting that you will be able to sell the metal for a higher price in the future. I do not know that the money is the new gold medal, but it is very well when stocks are having a bad password. So if you think that stocks are in for a bad performance over the next years, silver is a good investment.

But you must be very pessimistic on the future of the us to invest heavily in money economy. In 2010, silver had a gain of 80%. It was its best gain since late 80. When you buy goods such as money after that they had such breakout year, generally not very good results.

If you are planning to invest money make sure you have a plan. You need to know at what price you sell before you invest. If prices fall to your predetermined level, exit immediately. Don't wait.

When it comes down to it, silver is a good investment if the economy continues to recover at a snails pace. However, if the economy is indeed better faster then what most people thought, then the money is not good as an investment.


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