Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis

Published here: http://goldsilverworlds.com/economy/government-pumped-student-loan-bubble-sets-up-next-financial-crisis/

Presidential candidates Bernie Sanders and Elizabeth Warren are promising as much as $1.6 trillion in student debt forgiveness for millions of borrowers. Critics smell a cynical campaign ploy to try to buy the youth vote.

How is it either realistic or fair to declare an entire category of debt to be assumed by taxpayers?

Regardless, pie-in-the-sky proposals to cancel student debt shed light on a very down-to-earth problem for not only college students and recent graduates – but also for the economy and financial markets.

Student loans now rank as the second largest category of American consumer debt – bigger than credit cards, bigger than auto loans, and behind only mortgages.

Generation Z (composed of those now in their college years) faces the bleak prospect of crushing student loan debt combined with the crushing burden of more than $100 trillion in unfunded liabilities they will inherit from Uncle Sam.

No generation before has ever entered their prime working years with such enormous financial burdens. To make matters worse, they will enter their investing years with the stock market in extremely overvalued territory.

As the Baby Boomers head into retirement and begin steadily drawing wealth out of their IRA and 401(k) accounts, debt-saddled younger generations will likely lack the buying power to keep markets propped up.

Perhaps the Federal Reserve will step in as a “buyer of last resort” to keep debt and equity market bubbles from bursting. But it will take an unprecedent amount of buying (i.e., currency printing) to prevent another 2008-style (or worse) meltdown.

In the 2000s, the federal government, through the Community Reinvestment Act, started aggressively pushing banks to extend financing to “underserved communities.”

In practice, that meant lowering standards and pushing people better suited to renting into becoming holders of mortgages on overpriced properties.

In the 2010s, bureaucrats began aggressively pushing millions of people better suited to blue-collar work or trade schools into attending overpriced four-year colleges.

The U.S. government assumed near total control of the student loan market in 2010. It has issued $1 trillion of student loans since – many to people who have pursued economically worthless degrees in dubious subjects taught by leftist professors who care more about pushing their ideology than providing value to students.

As a consequence, more than 5 million “higher educated” Americans are now in default on their student loans. Millions more are foregoing things like home ownership and family formation because their bloated student loan payments are financially equivalent to having a mortgage.

A study by the Economic Policy Institute found that 54% of recent college graduates were either unemployed or employed in a job that doesn’t require a college degree.

Why College May No Longer Be a Good Investment

The government-subsidized student loan bubble has enabled college administrators to push tuitions and fees higher and higher on an accelerated slope, far outpacing overall price inflation.

The biggest growth in university hiring has been not for professors but for administrators who sit in offices and push paper or push social agendas.

Defenders of the traditional four-year college insist that it’s still a good investment. They argue that college graduates go on to earn several hundred thousand dollars more than non-grads over the course of their lifetimes – more than enough to justify the escalating costs of college.

But as any mere undergrad should know, correlation does not imply causation. Students who enter elite universities tend to have relatively high IQs to begin with.

They will tend to find their way to career success with or without college.

IQ has been shown to be a better predictor of job performance than number of years in school. And IQ tends to be a relatively stable trait after age 18 – meaning college won’t turn an average 100-IQ individual into a 150-IQ genius.

And a true genius may find college to be a waste of time (some of the greatest modern innovators in business, arts, and technology either never attended college, dropped out, or pursued their passion independently of their college work).

Standardized tests such as the SAT are strongly indicative of IQ. But social engineers are now pushing for the SAT to include an “adversity score” which would give bonus points on the basis of adverse life circumstances such as poverty and single mother households.

Some people face more adversity in life than others. Overcoming it is an achievement that should be celebrated. But the education establishment now celebrates adversity and perceived victimhood itself – encouraging students to wallow in their “marginalized” intersectional status and become dependent on authorities who pose as their saviors.

Despite all the political corruption and unnecessary cost inflation of higher education, college may still be the only viable path to certain types of careers. Some majors (such as engineering) are economically more valuable than others (such as gender studies).

Sending a kid off to college with no particular plan other than to acquire a well-rounded education doesn’t work anymore. It’s no longer even possible to obtain a classical education at most universities. They instead feature (and often mandate) courses aimed at deconstructing the foundations of Western civilization.

The Gold Standard vs. the Ph.D Standard

According to data from Open Syllabus Project, Karl Marx’s Communist Manifesto is the most frequently assigned book on economics.

Even if most economic professors aren’t outright Marxists, they still won’t teach students the most strident critiques of Marxism. Most economics majors will be taught from a Keynesian, mixed-economy interventionist perspective.

They won’t even be exposed to alternative schools of thought such as Austrian economics.

Students might read Milton Friedman, but they will have to seek out on their own books by more radical free-market thinkers such as Ludwig von Mises, Murray Rothbard, and Hans Herman Hoppe.

Forget about learning any appreciation for the gold standard in a typical Economics 101 class. Standard economics textbooks portray the decisions of central bankers and bureaucrats as being data-driven, careful, and sophisticated. Sound money backed by gold and silver is likened to something too primitive and simplistic for a modern economy.

In reality, sound money is scorned by the economics establishment because it is more effective than any number of Ph.D’s at constraining debt levels in the economy and spending levels by government.

Sound Money Scholarships Offered to Deserving Students

For students who are interested in sound money principles, there is some good news!

Money Metals Exchange is teaming up with the Sound Money Defense to help students pay for the ever-increasing costs of college. They have set aside 100 ounces of physical gold to reward outstanding students who display a thorough understanding of economics, monetary policy, and sound money.

The Sound Money Scholarship is the first gold-backed scholarship of the modern era.

It is open to high school seniors, undergraduate, and graduate students with an interest in economics, specifically the tradition of the Austrian school. The deadline to submit applications is September 30, 2019.

For more information, please visit moneymetals.com/scholarship or email scholarship@moneymetals.com.

 

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

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Mining Stocks Flash Powerful Signal for Gold and Silver Markets

Published here: http://goldsilverworlds.com/gold-silver-price-news/mining-stocks-flash-powerful-signal-for-gold-and-silver-markets/

The second half of the year is setting up favorably for the precious metals sector, which was led in the first half by gold and gold mining stocks.

Of course, the Wall Street-beholden financial media is largely ignoring metals and mining – preferring instead to give celebratory coverage to every move toward new highs in the Dow and S&P 500.

“The Dow Jones Industrial Average rallied 7.2% this month [June], notching its best June performance since 1938,” CNBC reported. “The S&P 500 posted its best first half of a year since 1997, soaring 17.3% and reaching an all-time high.”

That’s all well and good for conventional index investors.

But they are missing out on much bigger growth potential now being put on display by gold stocks.

For the month of June, the HUI gold miners index advanced 17.7% (more than double the Dow’s performance). The index is up over 30% since its low point in late May.

It’s not unusual for an annual rally in this volatile sector to produce a doubling of the majors’ share prices. For the more speculative juniors, gains can often be measured in multiples of 100%.

When things are going their way, there is no better sector than mining stocks for spectacular profit potential. When things aren’t, miners will burn investors far worse than any broad market index fund ever will.

Similarly, shares of gold and silver producers tend to amplify both the gains and the losses that occur in the underlying physical metals. Even a relatively modest correction in metal prices can translate into a crash in the equities.

Historically, the devastating declines produced during bear markets for mining stocks have outweighed the gains of bull markets. Over the past two decades, buy-and-hold investors have experienced lower risk and higher overall returns from bullion as compared to shares.

Investors may be surprised to learn that physical gold outperforms miners over the long run. The chart below – a 20-year look at the performance of the HUI gold miners index relative to spot gold prices – proves it:

Gold equities are suitable for traders and speculators who have a high tolerance for risk. Gold bullion is better suited for long-term investors and hedgers who seek to guard against risks in the financial system.

During the turbulent market conditions of 2008, gold prices finished the year in positive territory. The HUI index lost nearly 30% of its value.

At the end of the day, stocks are financial assets – regardless of whether they are associated with hard asset producing businesses. A mining business can go bankrupt; its shares can go to zero. A gold or silver coin will never become worthless.

Precious metals bulls who prefer to stick with physical bullion can still take some encouragement from periods when the mining sector gets hot. A sharp rise in gold and silver equities (as seen from late May through June this year) often precedes a sharp rise in the metals.

We haven’t yet seen silver move strongly to the upside. Prices remain extremely depressed in absolute terms and relative to gold and other metals.

Market guru Greg Weldon sees silver’s long, drawn out base as being akin to a “launching pad. We’re waiting for the countdown, we’re waiting for ignition.”

In a recent interview with Money Metals, Weldon noted the bullish price action in the major silver mining exchange traded fund (SIL). “When you look at the SIL versus the price of silver, it’s flipping right now, where the silver mining shares are beginning to grab the torch of upside leadership here. So to me, all that bodes very well for silver,” he said.

Silver tends to trade more volatile than gold. During bull markets, silver often performs like gold on steroids.

Though lately the white metal seems to have lost its mojo, it will eventually get it back. The technical setup suggests that could happen sooner rather than later (but investors should still be prepared to exercise patience).

Physical silver is a great choice for investors who want to capture upside potential similar to that of mining stocks while holding a hard asset that has historically served as money.

Given that the gold:silver ratio trades at a generational extreme of over 92:1, there may never be better time from a value perspective to favor silver. If the signal of the mining sector is accurate, silver is just about ready to launch.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

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Bullion Banks’ Manipulation Schemes Put Taxpayers at Risk

Published here: http://goldsilverworlds.com/economy/bullion-banks-manipulation-schemes-put-taxpayers-at-risk/

Gold and silver bugs are well aware that JPMorgan Chase dominates precious metals futures trading. Russ and Pam Martens of the financial blog Wall Street on Parade just identified how much control they have.

There are more than 5,300 FDIC insured banks in the U.S. Just two of them, JPMorgan and Citibank, hold 75.7% of all precious metals derivative contracts (primarily futures) in possession of the nation’s banks.

Other major Wall Street banks, including Goldman Sachs and Bank of America, are barely even in the game.

The market dominance implied by the outsized positions of these two banks is troubling enough. Metals investors have been pleading with regulators to step in for more than a decade, so far to no avail.

The most interesting part of the story, however, isn’t the monopoly power these banks wield in the futures markets. That’s been pretty well understood. Rather, it is the massive increase in the size of the position since the 2008 Financial Crisis.

Ten years ago, FDIC insured banks held metals contracts valued at less than $15 billion. Today they hold $38.6 billion – an increase of 157%.

Again, JPMorgan and Citi control more than three quarters of that position. It is one more confirmation that the futures markets are hopelessly broken and corrupted. Price discovery is not organic, it is rigged.

Regulators turned a blind eye as the bullion banks issued freshly printed contracts to any and all speculators willing to bet on higher gold and silver prices. There is effectively zero constraint on the supply of paper contracts. Demand is never enough to overwhelm supply and push prices consistently higher.

Piles of evidence now show the bullion banks using their dominant position and inside information to rig price movements lower – by hook and by crook. They profit over and over again from their huge, and perpetually growing, short position.

We continue to marvel at the lack of concern from regulators. These banks are, at this point, in plain view building monopoly positions in the highly leveraged futures markets. And they may be relying on price rigging to make those positions profitable.

It isn’t just that this sort of activity is crooked. It is also exceptionally risky.

These banks are FDIC insured, and FDIC funds may not be sufficient in the event of a major collapse. (Some believe it would be better if the FDIC did not exist and people had to think carefully about where to do their banking.)

Taxpayers could wind up footing the bill in a couple different scenarios…

For one, these bankers could be wagering more than they can afford to lose on highly leveraged derivatives of all sorts. We saw it happen in 2008, though the banks were rewarded with bailouts instead of being closed by officials.

The banks could also finally be held accountable in court for what they have done.

It may seem unlikely to jaded gold bugs, but there is hope.

The game is changing because the traditional bank regulators are losing control.

Bankers may be forced to answer to prosecutors, citizen juries, and class action attorneys in the next few years.

The Department of Justice is investigating now. One Vice President at JPMorgan and one bullion bank (Deutsche Bank) have already pled guilty. Both agreed to cooperate by providing evidence against other executives and banks involved in their rigging schemes.

As hard as it may be to imagine, JPMorgan and Citi could be bankrupted by fines, loss of trading privileges, and massive civil judgments piled on top of a loss of client and investor confidence.

Yes, we’ll understand if people scoff at the notion of a major Wall Street bank finally paying for their sins. It will be a first.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

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Michael Pento Warns: Stock Market May Go Off the Cliff, Stagflation Like Never Before

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Silver Market Alert: Powerful Bullish Setup Takes Shape

Published here: http://goldsilverworlds.com/gold-silver-price-news/silver-market-alert-powerful-bullish-setup-takes-shape/

The silver market appears to be setting up for a big move.

After spending this spring stair-stepping lower in a narrowing range, silver prices have formed a falling wedge pattern. That pattern usually resolves in a powerful directional breakout. The good news for bulls is that falling wedges usually break out to the upside.

Commercial hedgers and bullion banks (i.e., “smart money”) in the silver futures market have significantly trimmed their short positions over the past couple weeks – a bullish development. While their net positioning isn’t yet at an extreme, it is more favorable than not for a price rally to commence in the near future.

Of course, neither futures traders nor chart patterns are 100% reliable. Nor do they have any particular implications for where prices may be headed years from now.

Long-term investors can benefit from identifying opportune entry points on the charts. But if a big multi-year bull market is to come, it will be driven by fundamentals – supply, demand, relative valuations, inflation rates, and investor sentiment.

Let’s therefore drill down into silver’s fundamentals.

The Silver Institute is widely considered to be an authoritative source. The Institute released its annual World Silver Survey in April, which showed global silver demand rose by 4% in 2018 to more than 1 billion ounces. At the same time, supply from mine production fell 2% last year to 855.7 million ounces.

At first glance, these numbers present a compelling case for higher silver prices. Demand appears to be outstripping supply.

However, there is no actual physical shortage. The mining supply deficit is (for now) being made up by scrap recycling and other secondary above-ground sources of physical silver.

There ultimately will be a physical shortage if demand continues to rise while mining production falls. The market’s way of averting such a shortage is through higher prices to incentivize more output and encourage thrifting by industrial users.

Silver is a difficult market to forecast in part because there are few primary silver miners in existence. Most silver production comes from gold and base metals mining operations.

The gold mining industry is shrinking as reserves get depleted without being replaced by new discoveries and small companies get gobbled up by larger ones.

Some industry insiders believe “peak gold” has arrived, which would imply annual global gold mining output heads down in the years to come.

Silver can be viewed as a leveraged play on gold. Silver is the more volatile of the two monetary metals.

And right now it happens to be extremely cheap versus gold. Silver currently trades at about 1/86th the price of gold, just off a 25-year low hit earlier in April.

A mean reversion toward a more typical silver:gold ratio would imply massive silver outperformance going forward. At silver’s last major cyclical peak in 2011 above $49/oz, the white metal traded at 1/30th the gold price. Going back further in history, there is precedent for further narrowing in the gold:silver gap.

The wild card is investment demand, which often actually rises during periods of rising prices. It’s human nature to want to join a trend in motion – and over the past few years, U.S. retail investment demand has been soft amidst a trendless silver market.

Only the most farsighted, hardy, and patient investors buy aggressively while the market isn’t going anywhere. They stand to reap the biggest gains, though, when prices finally do take off.

Weak sales figures over the past couple years on popular bullion products such as Silver Eagles suggest investors remain largely disinterested in silver. However, digging deeper into World Silver Survey data, we find that global investment demand for bars shot up by 53% in 2018.

Much of that demand came from India and China, where evidently more people of wealth are deciding to stack silver bars.

Gold has long been a powerful status symbol in Asia. But silver represents a more practical, more affordable way for the masses to hold wealth and conduct barter and trade transactions.

While central banks around the world (including China’s) accumulate gold at an accelerating pace, individuals accumulating their own monetary reserves in the form of silver bullion appears to be an emerging trend in the emerging world.

The bottom line is that the underlying fundamentals of the silver market are turning more and more favorable, even though the headlines aren’t – yet.

 Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

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Silver slowly heading towards a cluster of resistance, strong challenge for the bulls

Published here: http://goldsilverworlds.com/category-technicals/silver-slowly-heading-towards-a-cluster-of-resistance-strong-challenge-for-the-bulls/

The price of silver significantly fell in the global market after hitting the critical resistance level at 25.03. Majority of the aggressive price action traders managed to make a decent profit by shorting the silver with the formation of bearish pin bar right at that critical resistance level (25.03). After the extended bearish rally, it found some solid support at 13.64. From that level, the pair started its bullish correction after the formation of bullish morning star pattern in the daily chart. Currently, the price silver is heading towards a cluster of resistance and breaking above that level will be a tough challenge for the bulls. So, looking for a short trade setup near the bearish trend line resistance seems to be more logical on the current market conditions. But the traders are advised to look for bearish price action confirmation signal to justify their trade setup.

Silver weekly chart analysis

Silver weekly chart analysis

From the above figure, you can see how the bears took control of this market after hitting the major resistance level at 25.03. The bulls regain control of this market after forming a bullish morning pattern right at the critical support level at 13.64. From that level, the price rallied higher but eventually found strong resistance at 20.51. This level is going to provide an extreme level of selling pressure to this pair since the level is reinforced with the 61.8% bearish retracement level ( drawn from the high of 25th August 2013 to the low of 13th December 2015). Moreover, we also have a bearish crossover of the 100 and 200 weekly SMA. According to the leading analyst of the reputed Forex broker, the bulls will have a tough time to breach the critical resistance level at 17.66 since it’s reinforced by 200 weekly and SMA and bearish trend line resistance. Right above that level we also have 38.2% bearish Fibonacci retracement level, which is a very strong resistance for this pair.

Potential market movements

We need weekly closing of the price above the critical resistance level at 18.00 to see some fresh buying pressure in the silver. On the contrary, any bearish price action confirmation signal near the major resistance level at 18.00 will be an excellent opportunity to execute fresh sell orders. If the bears manage to take control of this market from that level, the pair is most likely to head towards the nearest critical support level at 16.26. Though this level might offer temporary buying momentum to this pair, weekly closing the price below this level will eventually force this pair towards the key support level at 13.64.

On the upside, we need to clear the major resistance level at 20.51 (61.8% bearish Fibonacci retracement level) to execute fresh long orders. But regaining such strength will be a very hard challenge for the bulls on the present market structure. Considering all the parameters, the traders are advised to look for a short trading opportunity near the massive resistance zone at 18.00-20.00.

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Love. Fear. Inflation. A Precious Metals’ Trifecta

Published here: http://goldsilverworlds.com/physical-market/love-fear-inflation-a-precious-metals-trifecta/

By David Smith, Money Metals Exchange

Going forward, there are – and will continue to be – three primary drivers of global physical gold (and silver) demand.

During certain times in the past only one or two of these elements provided most of the momentum.

However, as we move into 2019, and for possibly the next 5-10 years, all three will be in play. They will operate synergistically to consistently motivate increased precious metals’ buying around the globe. This will happen, even as meeting that demand with sufficient new supply becomes problematic.

The term “synergistic” is used here on purpose. By definition, it relates to “the interaction or cooperation of two or more organizations, substances or other agents to produce a combined effect greater than the sum of their separate effects.”

The Three Demand Drivers for Precious Metals

Fear: Not just about social and economic unrest, but also – as prices begin to move up and away – fear of missing out!

People buy gold (and silver) as insurance, as an easily saleable for cash when needed option, and as a last ditch “get out of Dodge” ticket when the local currency has been “burned” due to government mismanagement and corruption.

Ask Vietnamese in the 1970’s or Zimbabweans, now in their second currency-destroying hyperinflation in recent memory. Ask Argentines facing their 9th currency-extinction event in modern history, or Venezuelans today.

Fear manifests itself today in the current roller-coaster ride of the larger stock markets (DOW/S&P, etc.), the student debt trigger (at almost $1.5t, much of which is in arrears), liquidity draining by the Federal Reserve, and record levels of overall U.S. debt.

Love: The Chinese New Year celebrations are coming into view… Gold demand from China and India (Chindia) has been consistently higher for the last decade – with no signs of tapering.

This is taking place because history and custom pretty much ordain it. With incomes rising in both countries, this solidly entrenched demand trend is set to continue for the foreseeable future.

Chindia – the 800 Pound Demand Gorilla

Inflation: For a number of years, an inflation vs. deflation debate has raged. Deflationary analysts believe that the coming massive debt repudiation, at some point inevitably taking place as the misguided, unpaid-for-spending is unwound, will take asset prices – including precious metals – down with it.

But this perspective fails to consider that central banks – foremost among them the Federal Reserve (simply a central bank by another name) will absolutely do everything in their power to avoid an asset crash.

Fed policymakers will print, literally and digitally, “as much as it takes” to keep this from happening.

They want and need inflation to keep their game going as long as possible. Not to mention that the government’s massive deficits get paid off in worth-less money. Politicians can continue spending paper promises, get re-elected, and reward their political allies.

Stewart Thomson of Graceland Updates identifies the critical distinction which practically guarantees that inflation will become the desired outcome, for as long as humanly possible. He states:

When a financial crisis is related to the private sector, it generally takes a deflationary form. When it relates to the government, it generally takes an inflationary form. The next super-crisis in the West is vastly more likely to be a government crisis, not a private sector crisis, and the place that crisis is most likely to take place in is… America.

The Gold Demand Engine Is Heading Toward a Supply Wall

The trend, if going against you, becomes your enemy. In spite of increased exploratory spending, new large gold discoveries are becoming less common, more costly to find, and taking increasingly longer to develop to production stage when they are located.

The discovery trend for large gold deposits is decidedly down. (Courtesy Katusa Research, sources listed.)

Silver production, marching to its own supply drummer, is not looking all that robust either. At current mining rates, only about 9 ounces of silver are being mined for every mined ounce of gold. Yet the silver gold ratio is running around 85:1. Is something seriously out of whack?

Seven years after a major, but most likely not the major top in gold prices at around $1,900 the ounce, gold still shines brightly in the protect your assets department. Liquid, easily storable, fungible, easily divisible, and historically reliable.

Over 20 years, Gold has outpaced stocks… and inflation.

In 2001, at the tail end of a 20-year silver bear market, Doug Casey said: At the top, people don’t look at fundamentals because they think they’re no longer relevant… At the bottom, they’re not looking because they just don’t care.

Sound familiar today?

What have the global ‘financial wizards’ learned since 2008?

In 2008, global debt totals were in the area of $170 trillion, to the tune of 275% of the world’s gross domestic product (GDP). Today those figures are above $250 trillion and well over 300% of GDP. Look at how little the world’s financial wizards seemed to have learned from the crises which literally came within hours of taking the entire global financial system down with it.

So if you haven’t taken this opportunity into declining prices to either establish a position in physical gold and silver, or have yet to “top off” your holdings, consider answering the question Dirty Harry often posed to his opponents, “Do you feel lucky today?”

 

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

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UUUU Stock Is One to Watch as New Bull Market Is Now in Development

Published here: https://www.profitconfidential.com/stock/energy-fuels-stock/uuuu-stock-to-watch-as-bull-market-in-development/

UUUU Stock: There Is Always a Bull Market Somewhere
In recent weeks, I have been pointing out my concerns that the market is likely in the process of forging a significant top, suggesting that a bear market might be brewing on the horizon. This is obviously not good news that I have been sharing.

So I am going to switch gears and focus on a silver lining in this market. For one, now that October is behind us, we have entered a seasonal strong period for stocks that will likely stretch into 2019. And of course, we must never ever forget that even if the major market indices are poised to correct, there is always a bull market somewhere.

For instance, uranium and uranium.

The post UUUU Stock Is One to Watch as New Bull Market Is Now in Development appeared first on Profit Confidential.

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Why is Gold so Important?

Published here: http://goldsilverworlds.com/gold-silver-general/why-is-gold-so-important/

Why is gold so important? It’s a hard question, right? You must have asked that question to yourself too…why in all those precious metals is gold the most important?  Before answering that question let’s learn first about gold and its uses to tackle that problem.

Gold has been used for thousands of years and by ancient civilizations.  We surely don’t know who first discovered gold, but we’re happy they did. Gold’s history can be traced as far back as 40,000 BC!  Pretty old for a precious metal, right?

Ancient Egyptians

You might wonder what early uses did they have for gold when they first discovered it.  Unfortunately, we don’t know either.  But since 3,000 BC gold played an important role with the Egyptians.  It was used to decorate their temples, weapons, ornaments, and jewelry. To the ancient Egyptians, gold was so important to them that even the capstones in the great pyramid of Giza were made out of gold.

Gold was also used by the Egyptians as their currency.  As a matter of fact, Egyptians are known to  have the first currency exchange in history. One gold unit was equivalent to two and a half pieces of silver.  Not just that, Egyptians also created gold maps to point where gold mines and different deposits of gold were located in the entire Egyptian kingdom.

Ancient Greeks

Gold was used as a symbol and to honor the gods and demigods by the ancient Greeks. In ancient Greek gold is a symbol of wealth and richness, and was also formed as a currency. The ancient  Greeks mined gold throughout the Mediterranean and Middle East since 550 B.C.

Gold mentioned in the Bible

According to the Bible, Genesis 2:10-12 says that the land of Havilah (near Eden) is a place where good qualities of gold can be found. The Aztecs and many other civilizations used gold abundantly in the early history, gold was also used in their religious ceremonies and in their architectural designs.

Gold signifies power and wealth in the earliest civilization.  Those who hold gold also bear a great power including emperors and priests.

Gold has been very important since the early civilizations.  Its uses have been valued throughout  history. The question that struck my mind is why is it so important?  Gold is considered at the present time as a very precious metal due to its characteristics.  Gold is dense, soft, shiny, malleable and a very ductile metal.

We cannot deny the importance of gold in our lives, even in our daily lives we use gold. In fact, an ounce of gold can be pressed and stretched into 50 miles of wire at a one-tenth diameter of a human hair. Some of our precious jewelry is also made out of gold.  It has many uses in a host of industrial applications including wiring in electronics, an anti-glare film lining in the astronauts’ visors, and gold can be used in health and dentistry.

Gold has so many possible uses in our industry, economy and in our lives. The answer to the question of why gold is very important is because of its uses and value in our lives.

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Is Silver On The Rise? Could It Be The New Gold?

Published here: http://goldsilverworlds.com/gold-silver-general/is-silver-on-the-rise-could-it-be-the-new-gold/

Investors are talking about gold mainly for its value and price.  In the past ten years, the price of gold has increased from less than $300 to $1,500 per ounce…quite interesting for gold investors.

However, silver has performed better than gold for the past ten years.  Its price has ranged from less than $5 to $40 an ounce. So if you invested  $10,000 in gold in June 2001 its value today would be $50,000, but if you invested $10,000 in silver on the same date you would now have around $80,000.

Now may be the time to start thinking of silver as the new gold.  As a matter of fact, there are several pieces of evidence that silver could soon replace gold as the precious metal of choice for some investors. An example of that is some analysts project that the price of silver will rise to $90 per ounce by the end of 2021, while the price of gold remains at $1,500 over the same time frame.

Silver rises for many of the same reasons as gold.  One of the biggest common factors is the state of the economy today. Economic uncertainty can be observed at any given time, and when there is a high risk of inflation, precious metals become more desirable due to a recognized safety and reputation.

One of the biggest advantages of silver is it’s not widely considered a main source of value like gold is. Silver also has many uses in industry, medicine, and dentistry, thanks to its usefulness, unique properties such as a good electrical and thermal conductors and usefulness in making metal alloys.

Silver can be very useful to mankind.  There are many reasons why you should invest in silver too. One reason is silver is cheap, its industrial use is growing, world demand is growing and in the gold and silver ratio silver is more favorable.

Silver is cheap

You could buy a hard asset of silver at roughly the price of 1/70th the price of gold, much more affordable and easier to acquire for the smaller investors. If you cannot afford to buy a full ounce of gold, silver can be a substitute to own a precious metal.

The growth of Silvers Industrial Use

Silver is very useful.  Even in our daily lives, we use it.  From electronics to medical applications, and from batteries to solar panels, silver is used in many major industries. Silver is the most electrically and thermally conductive and reflective metal that exists. Due to its unique characteristics, its industrial application has risen. As the matter of fact, today’s industry makes up more than the half of silver demand.

World Demand is growing

Like its industrial use, silvers global demand also grows. Basically, all leading government mints have already seen the record levels of silvers sales. China and India are one of the countries whose silver growing demand can be seen. The behemoth markets of the two countries have a long history of cultural affection towards precious metals. As well as their population growth the astounding desire for precious metals will also rise.

Gold and Silver Ratio, Supports Silver

The gold/silver ratio can give clues to investors as to which metal might be good to buy at any given time.  Gold-to-Silver ratio average is 47:1 during the 20th century, its ratio climbed to 61:1 in the 21st century. Which makes silver a good investment related to gold.

It is very hard to find an asset with a greater use between price and basis. If you think gold is quite expensive, silver is the precious metal for you. Silvers uses in industry and the economy are growing.

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When to Sell and When to Buy

Published here: http://goldsilverworlds.com/physical-market/when-to-sell-and-when-to-buy/

Gold is always a sought-after asset. Not only does it diversify your investment portfolio, but it also helps you gain ground in creating your very own hedge against an economic crisis that might occur while owning the asset. For newcomers, gold has always been hard to understand. The market fluctuates in such a way that sometimes it can become unpredictable. And so many other factors affect it as well. Some of these could be the political standing of the country, the economy, the oil markets, the scarcity of gold itself, the demand for the product and so much more.

But fret not.  We have compiled a list of things you need to consider before buying gold, or if you already own gold, these are the aspects you need to consider on when to buy and when to sell.

Having the right mindset and knowing the proper time to purchase and sell the product is very crucial in buying and selling gold. For example, buying at the wrong time could lead to purchasing very expensive gold per ounce, and selling at the wrong time could also be a great loss of the asset considering the prices of the product itself might considerably increase. So, these are the few factors one needs to consider before you make a financial decision regarding Gold and other precious metals

The price of gold fluctuates, so when buying gold and other precious metal products timing is everything. Before jumping in and buying gold, look for the historical data to see the best time of the year to buy gold.

There are some cycles we can see to the price of gold according to the historical record of gold and silver prices.  Gold and silver tend to be low on price in the months of January, March, April and late June, which is a good time to buy gold.

If you are going to buy gold, buy it this year. You will get a better price this year than next year.

Maybe you are not interested in buying gold and you are interested in selling it.  Before you start thinking when to sell your gold, know first the value and purity of your gold.  If you’re thinking about selling your gold, you need to be more aware of the gold spot price. The gold spot price is the current price of which gold could be bought and sold.

The spot price of gold can fluctuate greatly from day to day or even hour to hour, due to the factors like supply and demand. Some factors can make it hard to predict the price of gold in the future! If it were easy, you’d be rich!

When is the best time to sell your gold? Typically, sellers of precious metals do so because they are in need of liquid funds.  Timing your transaction will require watching price trends and avoiding those months when precious metals prices trend downward.  Lastly, due to precious metals always having intrinsic value, you will always be able to sell you metals unlike paper assets.  You’re guaranteed to always be able to sell your gold for SOMETHING, even in a major disaster or crisis.

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Gold and Silver Facts

Published here: http://goldsilverworlds.com/gold-silver-general/gold-and-silver-facts/

Gold and Silver have been useful to mankind since ancient civilization. Even today, we use gold and silver in our everyday lives. But most of the people nowadays don’t know the purpose and the importance of both metals.  Let’s talk further about two of the most important metals ever discovered by mankind.  Here are some amazing facts about Gold and Silver.

Gold characteristics

• Color                           golden yellow
• Atomic Weight         9665
• Normal State            solid
• Melting Point           18 deg C, 1337.33 K
• Boiling Point            2850 deg C, 3123 K
• Electrons                  79
• Protons                     79

Gold is one of the oldest metals continually used since ancient civilizations. Its bright yellow color has been valued for thousands of years. The oldest gold treasure ever found was in a burial site in Varna, Bulgaria from around 4000 BC ( from the ancient Thracian civilization).

By 3100 BC man has evidence of gold and silver used by the Early Dynastic  Period of ancient Egypt. Egyptians used gold plates to decorate shrines, ornaments, weapons, ceramics, statues, glassware and jewelry. Gold has also been used as a standard for currencies all over the world.

The world’s largest gold bar was manufactured by the Mitsubishi Materials Corporation, a subsidiary of Mitsubishi. The gold bar stands at 250 kg (551 lb), measuring at the base   45.5 cm x 22.5 cm and 17 cm high with a 5-degree draft angle (equal to 15,730  cm³, or 17.9 in × 8.9 in × 6.7 in ≈ 1062.04 in³).

Gold is found on every continent on Earth, except for Antartica. The largest amount of gold can be found in the oceans.

Gold is edible, pure gold is chemically inert and passes through the human digestive system without being absorbed into the body. Since 24-karat gold is very soft and fragile, most edible gold – whether leaf, flakes or dust – also contains a little bit of silver which is also inert ( so it means we can eat a whole 24-karat gold without falling ill).

Earthquakes can turn water into gold (sounds like a shake rattle and gold!). During an earthquake, the fault jog suddenly opens wider. It’s like pulling the lid off a pressure cooker. The water inside the void vaporizes instantly, flashing to steam and forcing silica, which forms the mineral quartz and gold out of the fluids and onto nearby surfaces.

There’s gold in Eucalyptus trees ( sounds fun to plant eucalyptus trees ). Australian researchers have found that microscopic gold particles from underground ore deposits are present in the leaves of this tree!.

 

Silver characteristics

• Color                         Silver
• Atomic Weight       868
• Normal State           solid
• Melting Point          95 deg C, 1235.1 K
• Boiling Point           2155 deg C, 2428 K
• Electrons                 47
• Protons                    47

Silver has been used since prehistoric times. We do not know who discovered it, although the discovery would almost have been native silver. Silver objects dating from around 4000 BC have been found in Greece and in Anatolia (in modern Turkey).

For thousands of years, silver has been used as a medicine and anti-bacterial agent by ancient civilization throughout the world. Its medical purpose can be tracked since the ancient Greek and Roman Empires. The word silver comes from the Greek word “Argos”, meaning shiny or white.

Silver is the best electric conductor of all the elements. It is used as the standard by which other conductors are measured. On a scale of 0-100, silver ranks 100 in terms of electrical conductivity, followed by copper that ranks in 97 and gold ranks in 76.

Silver metal is not toxic to humans. In fact, like gold, it can be used as a food decoration. However, most silver salts are toxic to humans.  Silver is considered as germicidal meaning it kills bacteria and other lower organisms. Silver compounds can be absorbed into the circulatory system and reduced silver can be deposited into various bodily tissues.

Silver is so shiny that when polished it can reflect 95% of the light, taking a photograph also requires using a silver nitrate compound to make celluloid film sensitive to light. Around 30% of industrial silver consumption in the US is used for this.

The most common form of silver is sterling silver. This is actually a 92.5% pure silver, with the other 7.5% made up of other precious metal including copper. Britannia silver is an alloy of 95.8% silver and 4.2% copper, also used for jewelry and silverware. Fine silver is at least 99.9% pure and commercially available, but too soft for general use

The primary source of silver today is the New World. Mexico is the leading producer, followed by Peru. The United States, Canada, Russia, and Australia also produce silver. Around two-thirds of the silver obtained today is a byproduct of copper, lead, and zinc mining.

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Gold and Economic Freedom

Published here: http://goldsilverworlds.com/gold-silver-general/gold-and-economic-freedom/

Gold has had a significant impact on the U.S economy. Since the beginning of World War I, gold has been the sole international standard of exchange. Golds impact on the economy waxes and wanes, depending on how safe other investments are. Gold has been considered a luxury good since it is durable, homogeneous, divisible, portable and has significant advantages over all other media of exchange.

Before gold was used as a coin, its value was recognized even in the first Egyptian Dynasty. Its beauty, luster and malleability made it perfect for many uses. it has been used in the early times as a standard of exchange together with silver and copper. But not all goods can be paid by gold, it would be difficult to execute and would limit the extent of the society’s division of labor and specialization. Thus, it is a logical reason to create banknotes and deposits that can act as a substitute but convertible to gold.

The gold standard is a system where a country’s currency value is directly linked into gold. With this system, a country agrees to convert the currency of their money into a fixed amount of gold. But this system is not currently used by any government, Britain stopped using this system in 1931 followed by the U.S government in 1933 due to the percent of unemployment and deflation in the early 1930’s.

  Gold Standard Antagonism

A hysterical rival against the gold standard is an issue that unites statists of all persuasions.  There are two kinds of gold standard antagonism: the Not Arbitrary, and the More Free than Controlled.

In a gold standard (Not Arbitrary), its rare case is when depositors wanted to withdraw all their gold at the same time, the bank only keeps a certain percentage of the depositor’s total balance as reserves. Thus, the bank can loan out more than the number of gold deposits. But the amount of loans which a depositor can afford is not arbitrary.

However the More Free than Controlled system is a fully free system and is consistent with gold. It is a system where bank notes are made to convert the country’s currency of paper money and is directly linked to gold. The government remains in a gold standard which means gold is still used as a bank reserve and individuals are still free to own gold.

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My Goodness, What Is Happening to Platinum?

Published here: http://goldsilverworlds.com/gold-silver-insights/my-goodness-what-is-happening-to-platinum/

By Clint Siegner, Money Metals Exchange

You may have noticed the platinum price has fallen well below gold’s price and it continues to underperform the other precious metals. What is happening in the platinum market?

We see a handful of factors driving the recent declines in platinum. For starters, it is facing the same challenges we find in the gold and silver markets.

Platinum is used in auto catalysts, coins, and jewelry.

The dollar has been getting stronger, interest rates are rising, and traders on Wall Street have rarely been more carefree. Mainstream investors are positioning for economic strength, not looking for safety.

Platinum is trading like the other precious metals, which is to say performing poorly. As of this writing, platinum is down 16% for the year.

Compare that to silver’s decline of 17% and the price action looks pretty much in-line.

There are some other fundamentals behind platinum’s underperformance in the past few years though. Demand from automobile manufacturers is weakening significantly – forecast to be down 6% this year.

The prognosis for diesel cars is even worse, and that has hurt platinum demand more than the other metals. Diesel vehicles demand primarily platinum for their catalytic converters, while gasoline exhaust systems use mostly palladium.

The 2015 scandal involving Volkswagen revealed that diesel is not nearly as clean as thought previously. The car maker had been gaming the emissions testing system, and platinum-based catalytic converters were less efficient at scrubbing out unspent fuel from diesel engine exhaust.

Those revelations have had a serious impact on platinum demand – particularly in Europe where diesel had widespread adoption based on the false assumption that it was dramatically more “green” than gasoline.

Platinum is currently in surplus. Experts anticipate supply will outstrip demand by nearly 300,000 ounces this year.

The foreign exchange markets may also be contributing to platinum’s lower price. Recently the South African Rand has fallen significantly. Miners, who are typically paid in dollars or euros, are realizing much higher prices when those funds are converted to Rand.

For bullion investors looking to speculate as well as diversify their holdings, platinum looks interesting at these levels.

The political environment in South Africa has long been a challenge for miners. It may be about to get far worse. That may mean even more weakness in the Rand, but it can also mean a serious disruption to supply.

We also question how much longer the platinum price will remain at a significant discount to palladium. The two metals are largely interchangeable in automotive catalytic converters. If car makers see a good opportunity to save by switching to platinum, look for them to do it.

 

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

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Are Silver and Gold ‘at the Flood’?

Published here: http://goldsilverworlds.com/gold-silver-price-news/are-silver-and-gold-at-the-flood/

By David Smith, Money Metals Exchange

There is a tide in the affairs of men…

Thus, begins one of the most famous quotes ever uttered, taken from Shakespeare’s play, Julius Caesar. Brutus, talking to Cassius, says, “There is a tide in the affairs of men. Which taken at the flood, leads on to fortune…”

A flood tide takes place at the very crest in the water’s height. Once the “tide turns,” there is no stopping its ebb until, much later, it reaches an extended, even a minus low.

If you’re ashore in parts of Alaska, where a tide can run 20 feet, not embarking “at the flood” and waiting until it’s made an obvious turn can have important implications, leaving you and your craft high and dry.

The same applies in many areas in life, not least financial.

Shakespeare’s quote serves as a metaphor – a touchstone for deciding when, how, and even if to act on some particular circumstance in our lives.

It’s difficult, because though we may be certain we see a transformative event (or a series) in the process of taking place, there’s no way to know ahead of time how long or to what degree it may take.

In the case of the tightly-stretched “variance from the mean” in the market’s current opinion of where the precious metals are headed over the near to intermediate term, divining the outcome correctly in a timely manner could have decisive bottom-line consequences for those who decide to act… and for those who do not.

Even more important than trying to “score a quick profit,” if prices are making a major sustainable upside turn, those who have not established at least a core holding are likely to find themselves watching, waiting, and ultimately not participating at all as today’s levels recede in the rear-view mirror.

By the same token, waiting to buy until “it’s obvious” will lead to frustration if prices then move back into the large sideways action we’ve witnessed several times over the last few years.

By almost any measure, the precious metals’ sector is “stretched.”

Hedge fund silver shorts (betting on lower prices) – often a contrary indicator – are at all-time highs, as indicated by this chart:

Gold Commercial shorts – also a contrary indicator – are near all-time lows:

Physical gold and silver buying by China, India and Russia (gold) remain strong:

Palladium, often a “lead indicator” for the rest of the complex, has recently spiked $120 above its recent lows…

And platinum, which generally costs up to $300 an ounce more than gold, is trading at some of the largest ever recorded values below gold.

Trying to find an exact low in the price of any market is a losing proposition. But establishing holdings into a level which gives solid evidence of representing strong long-term value – well that’s an entirely different matter!

Brutus concludes his exchange with Cassius, remarking,

“Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves or lose our ventures.”

We’ll only know in the fullness of time, how closely the premise of this essay, the charts used to support it and the approach of tying it to Shakespeare’s quote, turn out to align with what Mr. Market has in store for us.

But it’s a sure bet that millions of market participants and those considering getting involved themselves will intently watch precious metals’ prices unfold in the coming days, weeks and months.

What a Bolivar buys – August 2018

There’s a lot to be said for reflecting deeply on the wisdom Brutus’ comments may portend. Do the directional arrows implied seem like a ‘fit’ for your belief about the state of things in today’s world, financially and politically? To your expectations, goals and resources? To your views on the metals’ supply-demand metrics?

Do you “have enough” metal right now to ’round out’ your position if this argument turns out in significant measure, to be correct?

Or are you still locked into “thinking mode” – hobbled by the opinions of the majority of market players currently crowded onto the same side of the proverbial investment boat, betting on still lower gold and silver prices?

Have you worked through the OODA Loop we discussed in earlier essays (see last month’s column For Sterling (Silver) Results, Repetition of the Basics is Worth its Weight in Gold).

Have you Observed, Oriented and Decided… but not Acted?

From this perspective, the precious metals’ “tide” looks to be very near a flood. Sensibly adjusting your current holdings or Acting to create and hold onto a new position might one day help keep you from being – unlike literally millions of Venezuelans who did not – “bound in shallows and in miseries.”

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

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The Bullion Market

Published here: http://goldsilverworlds.com/physical-market/the-bullion-market/

Bullion is any precious metal that is in the form of bars or ingots. It is usually used for trade in a market and comes from the original French word “bouillon” which means boiling. This was the term used to describe the activity of a melting metal.

Each Bullion varies when it comes to its value depending on its precious metal content which is determined by its purity and mass. To find out the purity of each gold bullion, they use the century-old method known as fire assay along with modern spectroscopic instrumentation to accurately determine its quality to ensure the owner receives fair market value for it. It is also weighed extremely accurately.

Understanding the bullion market

The bullion market is the avenue by which buyers and sellers can trade in gold or other precious metals. The London Bullion Market is known as the primary global bullion market trading platform for gold and silver.

The bullion market is where you can buy and sell your gold bullion or other precious metal ingots.  There are many bullion markets throughout the globe. These bullion markets are typically characterized as over the counter markets. Bullion markets exist in New York, Zurich, and Tokyo with London serving as the location for the largest global bullion market.

Bullion trade is considered to have a high turnover rate with transactions conducted over the phone or electronically, and its primary market is considered to be gold and silver. Gold and silver traded in the bullion market can sometimes be used as a safe-haven investment or hedge against inflation which may also affect its trading value.

The bullion market is one of several ways to invest in gold and precious metals. Other options like exchange-traded funds or mutual funds can also be good ways of investing in gold and precious metals.

Investment

The specifications of bullion prices are often regulated by legislation or market bodies. In the European Union, the minimum purity for gold bullion, which is treated as investment gold with regards to taxation, is 99.5% for gold bullion bars and 90% for bullion coins. You can choose to buy gold for many different investment reasons.

Most investors consider and use actual gold for a few reasons, one of which is that gold has proven to be a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio.

Conclusion

The Gold bullion market is the market by which buyers and sellers of gold and other precious metals trade and from which they gain profit.  Gold bullion has been considered a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio. Whatever the case, gold bullion has proven to be a worthy investment and has a high turnover rate, which is something investors also consider most when it comes to finding profit and returns. Like any other economic investment, the investor must always consider all the factors and the consequences of each of his decisions and hope that it will lead to good returns and profit whether it may be short term or long term.

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What is a Gold IRA?

Published here: http://goldsilverworlds.com/investing/what-is-a-gold-ira/

A Gold IRA is a type of retirement account by which physical gold or other precious metals are held in custody for the benefit of the IRA account owner. It works like a regular IRA but instead of using paper assets, The IRA holds bullions and coins. So basically, Gold IRA is a type of investment vehicle used to save for retirement by buying or holding gold bullions and other approved precious metals. with your traditional or Roth IRA, you stash your savings in the form of stocks, bonds or mutual funds.  In a Gold IRA, you use precious metals. You can also own many other precious metals aside from gold, examples of which are silver, palladium, and platinum.

This also allows you to invest in other gold-related options like stock in gold mining companies, precious metals mutual funds, precious metals commodity futures or Exchange Traded Funds (ETF).

How to get Gold IRA

Not all precious metals and gold can qualify for an IRA. These metals will have to meet IRA standards. If you have metals that you wish to deposit but have not been checked or approved, you might get rejected. Some accepted forms are the gold and silver American Eagle and Canadian Maple Leaf coins, the Austrian Philharmonic coin, PAMP Suisse Gold bars, Sunshine Gold and Silver Bars and most platinum bars. To get a Gold IRA, you will need a custodian to hold and provide the account for you. This is because the gold will be deposited into an IRS-approved depository and not a regular savings account. So to find an approved custodian, you can go to your nearest bank, credit union, trust company or brokerage firm and acquire a custodian for your gold.  Of course, you would want a qualified custodian you can trust with your asset and not just any company or person.

Weighing the costs: Pros and cons

One of the benefits of holding or owning physical gold or gold IRA is that it adds diversity to your retirement portfolio. Having this type of investment provides security for you and your money in the event of an economic meltdown or should stocks go south. Gold has already proven to be a considerable hedge against inflation, unlike stocks and bonds. One of the major cons could be the requirement to find a trustworthy custodian rather than just committing to the first person you meet. Another risk of having a gold IRA is the instability surrounding gold mines or companies. Other investors also dislike that gold IRAs don’t pay dividends.  One good thing is that your gold or precious metals are insured up to a certain amount when kept by the custodian which gives you a safer investment.  Some advisors say that you would be better off with an account that pays dividends.  Bottom line is to think everything through and spend more time understanding the economic decision you are making.  This will not only ensure wise decision making but allow you to plan your investment portfolio properly.

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5 Reasons to Buy Silver instead of Gold

Published here: http://goldsilverworlds.com/physical-market/5-reasons-to-buy-silver-instead-of-gold/

Is silver really better than gold? Why should someone buy silver instead of buying gold? What potentials does silver have as an investment? All these questions will be answered right here. It is natural of an investor to be curious and want to discover if one type of asset is better than another. This is particularly true when it comes to silver and gold since both markets generally differ in size.

1. Money in silver

Silver isn’t part of our currency, yet it is still considered of value along with gold. One evidence is that this cannot be generated easily and thus depreciates like paper or digital forms. And by real money, we do mean physical silver—not ETFs or certificates or futures contracts.

Here’s why silver and gold has potential value,

• They have never been defaulted on.
• They have no counter party risk.
• They have long term use as money.

So as a general overview, owning physical silver gives you a real asset that has served as money for thousands of years.

2. Silver is practical for small purchases

Silver itself is not cheap to buy but can be more practical when you want to use it. Perhaps you don’t want to use a full ounce of gold to meet a small financial need, hence silver could be of more potential value. Since it frequently comes in smaller denominations than gold, you can sell only what you want or need at the time.

3. Silver outperforms gold in bull markets

The market for silver is so small, in fact, that a little money moving into or out of the industry can impact the price to a much greater degree than other assets which include gold itself. This higher volatility rate also signifies that in bear markets, silver falls more than gold but soars further and higher than gold in bull markets.

4. Global demand is growing

World demand for silver is already growing.  Almost all major government mints have seen record levels of sales, with most already operating at peak production. Rising demand, especially in China and India, is very evident in today’s world. Both countries have very long histories when it comes to an affinity with precious metals. Thus, since these surging demands don’t happen so often, there will be consequences later when rising demands meet low supply.

5. Silver is a hard asset

There are a limited number of investments that you can hold in your hand, silver and gold are one of them.

The markets are full of paper profits, digital trading, and currency creation. However, this is in contrast with gold and silver investment options as these are one of the rare few you can store, hold or even have in your pocket. And it can be as private and confidential as you want. Physical silver is also a tangible hedge against all forms of hacking and cybercrime.

So generally these are some of the reasons why silver is generally better than gold and why investing in silver is also a good option, not only does it diversify your portfolio, it also has many more benefits along with gold and other precious metals.

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